Taxpayers who can’t resolve issues with the IRS on their own may be able to find help from the Taxpayer Advocate Service (TAS). TAS is an independent agency within the IRS, that exists to ensure taxpayers are treated fairly. Cases the TAS can currently accept must deal with one of four issues. They include: cases … Read More
To avoid a surprise when you file your tax return, review your federal withholding each year to make sure you’re not having too little (or too much) tax withheld from your paychecks. In general, you should increase withholding if you hold more than one job at a time or have income from sources that aren’t … Read More
Under two COVID-19 relief laws, “emergency rental assistance” is being provided to certain people by the government. The IRS has added information on its website about the tax implications of these payments. For example, are they included in gross income? The answer is no. The payments aren’t considered income for tax purposes. That includes payments … Read More
The National Taxpayer Advocate (NTA) has a caution for taxpayers who file a claim for refund after April 15 for tax years 2019 or 2020. They may have a timely filed claim, but the amount of the refund may be unexpectedly limited to $0 (effectively denied) in 2023 or 2024 because the IRS postponed the … Read More
If your business is organized as a sole proprietorship or as a wholly owned limited liability company (LLC), you’re subject to both income tax and self-employment tax. There may be a way to cut your tax bill by conducting business as an S corporation. Fundamentals of self-employment tax The self-employment tax is imposed on 92.35% … Read More
Now that this year’s filing deadline has passed, the IRS has issued a reminder: If you haven’t filed and you’re due a refund, there’s no penalty for filing late. However, if you owe and missed the deadline without requesting an extension (until October 15), you should file quickly to limit the penalties and interest. Certain … Read More
Even after your 2020 tax return has been successfully filed with the IRS, you may still have some questions about the return. Here are brief answers to three questions that we’re frequently asked at this time of year. Are you wondering when you will receive your refund? The IRS has an online tool that can … Read More
IRS Commissioner Charles Rettig wants more funding to help stop tax evasion. The IRS would like to increase audits of high-income individuals and corporate tax returns. “These cases are not easy to resolve,” Rettig stated. “The average investigation of a high-wealth individual takes two years to complete and often requires the IRS to commit substantial … Read More
Before the COVID-19 pandemic hit, the number of people engaged in the “gig” or sharing economy had been growing, according to several reports. And reductions in working hours during the pandemic have caused even more people to turn to gig work to make up lost income. There are tax consequences for the people who perform … Read More
One benefit of the current federal gift and estate tax exemption amount ($11.7 million in 2021) is that it allows most people to focus their estate planning efforts on asset protection and other wealth preservation strategies, rather than tax minimization. (Although, be aware that President Biden has indicated that he’d like to roll back the … Read More