Time and again we see that taxpayers who run into trouble should not attempt to resolve the problem themselves. It almost always makes sense to rely on professional representation. A professional will usually reduce the tax liability by far more than their fee. But tax professionals can be expensive and not all taxpayers can afford […]
SIGNIFICANT TAX NEWS CHANGE ABOUT NON-EMPLOYEE COMPENATION: The IRS revived the use of Form 1099-NEC for use in reporting non-employee compensation for 2020. This form was last used in 1982 but now will be used to report 2020 non-employee compensation. Corresponding changes were made to the old 1099-MISC form. The due dates are also changed. […]
IRS just released the 195 page “General Report of the 2020 Internal Revenue Service Advisory Council“. I read the applicable sections on small business and nonprofits that affects me and my clients. The key relevant concepts are: 1) IRS currently lacks the funding to operate effectively to collect the taxes necessary to run federal government. […]
The Internal Revenue Service will now allow taxpayers to submit Form 1040-X electronically when they want to file an amended tax return through commercial software. This will significantly reduce costs and increase efficiency for taxpayers who want to amend a prior tax return to claim a credit or correct an error. The IRS calls this […]
I missed a continuing professional education program on IRS criminal tax procedures yesterday due to ongoing problems restoring utilities after the storm on Tuesday. But I just read the program materials and the IRS 2019 report on criminal tax investigations and one thing jumps out at me: Drug related cases far outweigh all other categories […]
IRS says: “The gig economy, also called sharing or access economy, is activity where taxpayers earn income providing on-demand work, services or goods. Often, it’s through a digital platform like an app or website. While there are many types of sharing economy businesses, ride-sharing and home rentals are two of the most popular. Here are […]
Self-serve Options It seems that some of us were given inaccurate information about the ability to update personal bank accounts for the purpose of the Economic Impact Payment. As of today, this is what is posted on the IRS web page: “If we don’t have your direct deposit information from your 2018 or 2019 return […]
Millions of Americans are eligible for a stimulus payment from the U.S. Treasury Department as part of the federal government’s corona virus crisis response but will not receive this money unless they take additional action. This blog post focuses on those estimated 400,000 to 500,000 who are otherwise eligible for a stimulus payment but have […]
Most of us file taxes electronically without any need for paper forms. However, paper forms are allowed in most cases and may be useful. Here are three downloadable and printable IRS forms from cpapracticeadvisor that may be useful now: 2019 Form 1040 for individual income tax filing 2019 Form W2 for reporting wages paid 2020 […]
IRS is expanding the use of private collection agencies to collect tax debt. If you are among the 1 in 15 adults who owes tax debt then there are specific steps that you should take to protect your money and your privacy. 1. You have rights. But it is up to you to know those […]