Category: IRS
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Should a CPA prepare your tax return?
Summary The AICPA says “Simply put, a CPA will save you money in the long run and look out for your best interests. Anyone can drop numbers into software to prepare a tax return. However, a CPA will analyze your specific situation for tax savings opportunities and help you plan for next year.” This blog post expands…
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More on video evidence in court
Last week I posted a blog that commented on the surprising difficulties I faced this month having vehicle dash and bumper camera video evidence admitted as defense into a local Millville traffic court case. I’ve also been exposed to a number of cases in various courts (many mentioned in past blog posts) where regulators and…
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We need better information on tax collection trends
Anecdotal observations: My own anecdotal experience and online comments from other tax professionals indicates that tax audits and collection activity have increased this year at all levels – federal, state and local. This observation of rapidly increasing tax collection activities is not reflected in published data. Discrepancy between published data vs observed data: Four months…
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New nonprofit formations under scrutiny
The nonprofit formation process is under scrutiny. This week’s Kiplinger Tax Letter devoted attention to the topic. It referred to an unnamed 2019 IRS study that concluded that 46% of 1023 EZ filings were erroneously approved. Some lawmakers are calling for an end to the 1023EZ filing. Recent conversations with IRS employees the exempt organization…
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Noncash charitable donations
A snapshot of #tax issues related to large non-cash charitable deductions: – Taxpayers can avoid paying income tax on up to half of their income by making a donation to a properly registered #charity, so this is an important area of tax practice and dispute – Most taxpayers do not make charitable donations large enough…
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Should a small charity file 990N or 99EZ? It might depend on your goals
An accountant’s general rule is to provide as little information on a required filing as the law requires. But the opposite may be true for small charities. I’d love to hear your experience.
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How to report PPP loan forgiveness on your 1040 tax return
IRS included little specific guidance on the reporting of tax-exempt income from the forgiveness of a PPP loan. Generic instructions are included in the instructions for Form 1040, however tax law is clear that we may not rely on IRS instructions in this format to be reliable. Tax software, so far, and to the extent…
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How to handle tax law complexity
Yesterday a business owner made a comment in conversation fearful of the complexity of tax laws and his perception that compliance regulations are getting worse. His perception is accurate but I did not say so. Instead, I said that it is not my intention to help him learn more about this overly complex field. This…
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IRS Free File service is expanded
IRS is expanding its promotion of free electronic filing this year. Eight providers are participating in the IRS’s Free File program: 1040Now, OLT, FreeTaxUSA, TaxAct, FileYourTaxes.com, TaxSlayer, Free1040taxreturn.com, and eztaxreturn.com. Three other large and better-known tax service providers – TurboTax, H&R Block and Jackson Hewitt – have free offers for tax filing that are not…
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How bad tax advice tripped millions of investors
“Good tax advice may appear to be expensive, but it’s not as costly as blowing up your IRA” -WSJ What’s the easiest way to lose half of your retirement assets to IRS taxes and penalties? Follow the most popular social media tax and investment advice. Investors who lose tax court cases find that cultural norms…