Beginning tomorrow, the IRS intends to dramatically increase the number of aggressive enforcement action notifications. Thousands will receive these scary notices within the week. Collections using new technology and aggressive techniques will likely continue to ramp up over the next few years. If you receive a collection notice, I strongly recommend: don’t panic, most tax […]
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. […]
A tax preparer looks at the facts and tries to determine the appropriate reporting usually at the time of rushing through the tax season preparing multiple client tax returns. A tax adviser looks at the tax theory that most benefits the client and then looks at the facts, regulation and case law history for evidence […]
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 […]
Tax transcripts are a common tool used to solve tax problems. There are five different types. The type we use depends on the situation. 1) Tax Return Transcript – shows you tax return as filed, including most line items including your adjusted gross income (AGI) from your original Form 1040-series tax return as filed, along […]
Income PPP loans are not taxable income but of course must be recorded in the company’s bookkeeping. The question is how to record these transactions for correct tax treatment. Their isn’t just one ‘correct’ way to do this but actually several options listed by AICPA under IAS20. (My information comes from third party coverage in […]
Update: The issue is now resolved in tax filing software. The American Rescue Plan Act of 2021 (P.L.117-2) includes a provision allowing taxpayers with income under $150,000 to exclude $10,200 of 2020 payments from their taxable income. But the details on how to claim this tax benefit are not clear at this time. IRS urges […]
The American Rescue Plan makes these nine tax law changes for 2021: Additional stimulus payments Expanded Child Tax Credit Expanded Child and Dependent Care Credit Expanded Earned Income Tax Credit Increased Premium Tax Credits Extension and expansion of Paid Sick Leave and Family Leave Extension of Employee Retention Credit Pension plan relief Repeal of worldwide […]
SHAME ON @CNBC editors and author @sahahtobrien! This type of inaccurate reporting of tax policy and procedure in this article should be called out for the misleading information portrayed as public advice. At best it is sloppy reporting. At worst it represents a lack of understanding of the topic covered and the spreading of incorrect […]
This blog post is based on a presumption and projection of a proposed rule that may be modified delayed or cancelled. In other words this is a warning of ‘worst case’ impact on us based on the latest available information, Until now an owner of virtual currency had no obligation to disclose those holdings to […]