How nonprofits should classify their workers for tax purposes

September 9, 2020By Smeriglio Associates LLCNews

Employees or independent contractors? It’s not only for-profit companies that struggle with the question of how to classify workers for federal tax purposes. Not-for-profit organizations must withhold and pay Social Security, Medicare and unemployment taxes for employees, but not for contractors. (There may also be state tax responsibilities.) But be careful before you decide that … Read More

IRS: Social Security Tax Withholding

September 9, 2020By Smeriglio Associates LLCNews

The IRS has released guidance on deferring employee Social Security tax withholding under President Trump’s executive action. The guidance in Notice 2020-65 is brief and many employers still have questions and challenges about how, and whether, to implement deferral by the start date. The optional deferral applies to wages paid from Sept. 1 through Dec. … Read More

IRS: ” Mirrored” Joint Filer Accounts

September 8, 2020By Smeriglio Associates LLCNews

IRS employees often don’t know that they can disclose collection activity to divorced or separated taxpayers, according to a report from the Treasury Inspector General for Tax Administration (TIGTA). The report looked at cases when information was requested by delinquent taxpayers who are no longer married. “Mirrored accounts” made up 42 of the 74 cases … Read More

IRS Whistle blower Cash Awards

September 7, 2020By Smeriglio Associates LLCNews

An individual who provides information about unpaid federal tax to the IRS Whistleblower Office could qualify for a cash award. An eligible claim must meet certain requirements and “provide specific or credible information regarding tax underpayments or violations of internal revenue laws.” The tax code authorizes the IRS Whistleblower Office (WBO) to pay discretionary whistleblower … Read More

2020 – 08/28 – IRS: Draft Form 1040 – 2020

September 6, 2020By Smeriglio Associates LLCNews

The IRS has issued a draft of the 2020 Form 1040 that allows taxpayers to claim the new charitable contribution deduction. Under the CARES Act, taxpayers who don’t itemize their deductions can take a $300 “above-the-line” deduction for 2020 charitable contributions. There’s also a new line on the form to claim a “recovery rebate credit.” … Read More

IRS: Tax Refund Interest Payments

September 5, 2020By Smeriglio Associates LLCNews

The IRS is sending tax refund interest payments. The IRS announced the payments will be made to about 13.9 million individual taxpayers. The interest payments, averaging about $18, will be made to individuals who filed 2019 returns by this year’s July 15 deadline and either received a refund in the past three months or will … Read More

IRS: 3rd Party Payroll Shortfalls

September 4, 2020By Smeriglio Associates LLCNews

Many employers outsource their payroll tax duties to third parties, such as payroll service providers. According to the IRS, third parties occasionally fail to remit the payroll taxes entrusted to them and may even then close their doors abruptly. The tax agency urges employers to choose their payroll service provider carefully, because using a reputable … Read More