Category: IRS
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TAX ALERT: Non-employee compensation
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.…
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2020 IRS Report on its Operations
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.…
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IRS announced a “major milestone in tax administration”
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…
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Trends in tax crimes
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…
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Unrealistic advice from IRS to gig workers
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…
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Inability to update electronic banking with 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…
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File now to receive a CARES stimulus payment
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…
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3 IRS tax forms that you may need in 2020
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…
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How to protect yourself from IRS Collections and Private Collection Agencies
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…
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Tax lessons about statute of limitations
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…