As tax season kicks off on Feb. 12, 2021, the IRS wants to remind taxpayers of some points they might miss. For example, taxpayers who received interest income (of at least $10) from the IRS will be sent a Form 1099-INT, which must be reported on the 2020 tax return. Many received this income related … Read More
What will the U.S. economy look like through 2031? The Congressional Budget Office (CBO) has released its economic outlook report for the next decade, which includes a rapidly expanding real gross domestic product (GDP) this year, “reaching its previous peak in mid-2021.” The CBO estimates that average annual GDP growth from 2021 to 2025 will … Read More
The IRS’s Small Business-Self-Employed Div. has temporarily modified its levy procedures to avoid tapping the second round of Economic Impact Payments (EIP 2) received by certain taxpayers. A memo instructs IRS employees to determine, before taking any enforcement action, 1) if a taxpayer received an EIP 2 payment and in what amount, and 2) when … Read More
Life insurance has long provided a source of liquidity to pay estate taxes and other expenses. Even though for many families, federal and state estate taxes aren’t a concern, life insurance continues to offer many benefits for these nontaxable estates. For this reason, it’s important to properly account for your life insurance policies in your … Read More
As a new tax season approaches, the IRS continues dealing with delays due to COVID-19. According to an update on the IRS website, that includes processing millions of unopened tax returns. Refunds due will be sent in 2021 by paper check. To taxpayers expecting responses by mail, the IRS stated: “While we are opening mail … Read More
Over the past year, the importance of leadership at every level of a business has been emphasized. When a crisis such as a pandemic hits, it creates a sort of stress test for not only business owners and executives, but also supervisors of departments and work groups. Among the most important skill sets of any … Read More
President Biden’s Office, in a recent memo, asked to review, delay, and potentially withdraw, two final regulations in the U.S. Treasury Dept. pipeline. Such actions are allowed by law. TD 9944, “Credit for Carbon Oxide Sequestration,” relates to final carbon capture regs and includes a reduced recapture period. TD 9949 concerns employer shared responsibility provisions … Read More
The footnotes to your company’s financial statements give investors and lenders insight into account balances, accounting practices and potential risk factors — knowledge that’s vital to making well-informed business and investment decisions. Here are four important issues that you should cover in your footnote disclosures. 1. Unreported or contingent liabilities A company’s balance sheet might … Read More
The IRS is engaged in an effort to serve taxpayers in diverse communities by communicating with them in the language of their choice, said Jim Clifford, deputy project director of the Taxpayer First Act-Customer Service Strategy. For example, last spring, the IRS disseminated Economic Impact Payment outreach materials in 35 different languages. In addition, the … Read More
There’s a new IRS form for business taxpayers that pay or receive certain types of nonemployee compensation and it must be furnished to most recipients by February 1, 2021. After sending the forms to recipients, taxpayers must file the forms with the IRS by March 1 (March 31 if filing electronically). The requirement begins with forms for tax … Read More