Shockingly poor IRS customer service (and what to do about it)

Posted Posted in IRS, Taxes

We knew from earlier IRS statements that about one million tax returns from 2019 remain unprocessed and I’ve covered that in earlier blog posts. Many of these are paper filed returns. But now we hear that 16 to 17 million tax returns for 2020 are backlogged and many of these people are waiting for refunds. […]

Relief from post-pandemic tax stress

Posted Posted in Accounting, IRS, Taxes

One of the most important concepts in U.S. taxation today is the principle that the government cannot levy against taxpayer assets in the case of economic hardship. Never has this been more important than in this post-pandemic environment. The IRS is dramatically increasing aggressive tax collection practices that, in many cases, are causing stress to […]

How to resolve a tax dispute

Posted Posted in Accounting, IRS, Taxes

About one in four of us will receive notification from a tax collection authority about a missing payment or dispute in the amount of taxes due. Most of these are “mismatch” issues where the information that the tax authority has does not match the information on the tax returns that you  filed. The mismatch may […]

Low Income Taxpayer Clinics

Posted Posted in IRS, Taxes

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 […]

TAX ALERT: Non-employee compensation

Posted Posted in IRS, Small Business, Taxes

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. […]

2020 IRS Report on its Operations

Posted Posted in IRS, Nonprofit, Small Business, Taxes

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. […]

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 […]