Summer brings changes for many people, but you may not think about the tax aspects of those changes. That’s why the IRS is reminding taxpayers of a few ways that summer events could affect you at tax time. If you got married in 2021, your tax filing status has changed. Be sure to check your … Read More
The IRS will hire thousands of auditors by September. This was announced at a New York University conference where IRS officials were speakers. President Biden and the House Appropriations Committee have submitted IRS budget increases for FY2022 that include $1.7 billion more than IRS received in FY2021. The co-commissioners of the IRS Small Business / … Read More
In recent years, the IRS has distributed a great deal of information by posting FAQs to its website. But to what extent should taxpayers rely on the answers to FAQs? Acting IRS Chief Counsel William Paul recently addressed concerns regarding IRS-issued FAQs. “The IRS is comfortable with the view that if a taxpayer relies in … Read More
Did you know that there are three types of Social Security cards? All of them show a name and Social Security number (SSN) but some list work restrictions on the card. The Social Security Administration (SSA) issues one card for U.S. citizens and permanent residents; one that says “Not valid for employment;” and one that … Read More
Are you eligible to take the deduction for qualified business income (QBI)? Here are 10 facts about this valuable tax break, referred to as the pass-through deduction, QBI deduction or Section 199A deduction. It’s available to owners of sole proprietorships, single member limited liability companies (LLCs), partnerships and S corporations. It may also be claimed … Read More
The Employee Retention Tax Credit (ERTC) is a valuable tax break that was extended and modified by the American Rescue Plan Act (ARPA), enacted in March of 2021. Here’s a rundown of the rules. Background Back in March of 2020, Congress originally enacted the ERTC in the CARES Act to encourage employers to hire and … Read More
Reminder: The IRS will soon be resuming certain collection and enforcement processes that had been suspended because of the COVID-19 pandemic. Some of these processes will start up again on July 15. For example, the IRS will begin to levy certain assets through various programs with other government agencies on that date. That means the … Read More
The IRS just released its audit statistics for the 2020 fiscal year and fewer taxpayers had their returns examined as compared with prior years. But even though a small percentage of returns are being chosen for audit these days, that will be little consolation if yours is one of them. Latest statistics Overall, just 0.5% … Read More
The IRS recently posted a round of frequently asked questions (FAQs) that focus on its “Online Account” system. In a nutshell, the IRS’s Online Account is a portal that allows individual taxpayers to access their tax account information (including tax balances and payment history). It also allows taxpayers to set up payment plans for outstanding … Read More
Married couples may not be able to save as much as they need for retirement when one spouse doesn’t work outside the home — perhaps so that spouse can take care of children or elderly parents. In general, an IRA contribution is allowed only if a taxpayer earns compensation. However, there’s an exception involving a … Read More