What to do if you receive a ‘Notice of Intent to Levy’ from IRS

Posted Posted in IRS, Tax problem, Taxes

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 […]

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. […]

What’s the difference between a tax preparer and a tax adviser?

Posted Posted in Accounting, Tax Planning, Taxes

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 […]

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 […]

Five types of tax transcripts (and when to use them)

Posted Posted in Taxes

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 […]

Tax accounting for PPP loans in small S corporations

Posted Posted in Small Business, Taxes

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 […]

IRS guidance on reporting 2020 unemployment compensation

Posted Posted in Taxes

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 […]

Nine 2021 tax law changes in the American Rescue Plan

Posted Posted in News and Politics, Taxes

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 […]

CNBC published incorrect tax advice about reporting of cybercurrency

Posted Posted in Accounting, Cryptocurrency, Taxes

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 […]

Forecast: Cryptocurrency ownership reporting will be required

Posted 1 CommentPosted in Cryptocurrency, Taxes

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 […]