IRS announced a “major milestone in tax administration”

Posted Leave a commentPosted in Accounting, IRS, Taxes

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 […]

Trends in tax crimes

Posted Leave a commentPosted in Cannabis, IRS, New Jersey, Taxes

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 […]

Unrealistic advice from IRS to gig workers

Posted Leave a commentPosted in crisis management, Government, IRS, Taxes

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 […]

Inability to update electronic banking with IRS

Posted Leave a commentPosted in Banking, crisis management, IRS

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 […]

File now to receive a CARES stimulus payment

Posted Leave a commentPosted in CARES Act, crisis management, IRS

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 […]

3 IRS tax forms that you may need in 2020

Posted Leave a commentPosted in IRS, Taxes

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 […]

How to protect yourself from IRS Collections and Private Collection Agencies

Posted Leave a commentPosted in Accounting, IRS, Legal, Taxes

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 […]

Tax lessons about statute of limitations

Posted Leave a commentPosted in IRS, Taxes

The recently issued court opinion in Finnegan v. Commissioner, No. 17-10676 (11th Cir. 2019) emphasizes two points for taxpayers: Intentional fraud by the tax preparer can extend and hold open the statute of limitations. If a taxpayer wants to make an argument about statute of limitations, it should be raised at tax court, not in […]

What’s your risk of being audited by the IRS?

Posted Leave a commentPosted in IRS, Marijuana related business (MRB), Taxes

High risk category The highest risk of audit is born by the President of the Unites States who is automatically audited by the IRS every year. President Trump says this is very unfair. But what about the rest of us? Any taxpayer who omits an income item filed by a third party (a W2 form […]

Tax preparers in trouble with IRS

Posted Leave a commentPosted in IRS, Taxes

How do tax preparers get into trouble with the IRS? In 2018 the Office of Professional Responsibility, under the Internal Revenue Service, investigated over 2,600 cases of tax preparer misconduct. According to the Office’s latest report, the three most common problems were: Claiming false credentials on Form 2848 (Power of Attorney) or using that power […]