Certain taxpayers who filed 2019 returns before the onset of the novel coronavirus (COVID-19) pandemic may want a “do over.” The Taxpayer Advocate Service (TAS) noted in a blogpost that while most taxpayers who overpaid their 2019 taxes elected to receive a refund, some chose to have the overpayment applied to their 2020 tax bills. … Read More
A friendly reminder that you can drop-off your Tax Documents to our office, mail to our office, email to us, or electronically upload your documents to our portal. We cannot begin any work for you until we receive all of the following items:#1 Signed Tax Engagement Letter,#2 Signed Audit Representation Letter (if you chose to enroll … Read More
A friendly reminder that you can drop-off your Tax Documents to our office, mail to our office, email to us, or electronically upload your documents to our portal. We cannot begin any work for you until we receive all of the following items: #1 Signed Tax Engagement Letter, #2 Signed Audit Representation Letter (if you … Read More
An offer in compromise (OIC) is an agreement between a taxpayer and the IRS to settle a tax debt for less than the amount owed. The IRS can accept an OIC if there’s: 1) doubt as to liability 2) doubt as to collectability, or 3) promotion of effective tax administration. One taxpayer who owed taxes … Read More
Owners of passthrough businesses who meet certain requirements may be eligible for a generous deduction, if they’re current on their tax filing. The deduction equals up to 20% of the owner’s share of qualified business income (QBI). In one case, the deduction was denied because the owner hadn’t filed a tax return. The IRS independently … Read More
A new group of taxpayers get tax relief. In new IRS guidance, relief was extended to certain taxpayers who took out federal or private student loans to finance education at a for-profit or nonprofit school. Relief is also granted to qualified creditors who would otherwise have to file information returns and furnish payee statements to … Read More
The IRS has begun accepting and processing 2019 federal tax returns. In an information release, among other things, the IRS is reminding taxpayers about cryptocurrency reporting. Form 1040 now includes questions about virtual currency transactions. So, taxpayers who in 2019 engaged in a virtual currency transaction will need to file Schedule 1, Additional Income and … Read More
The IRS is offering a settlement to taxpayers under audit who participated in abusive “micro-captive” insurance transactions. In these deals, promoters and others persuade owners of closely held entities to participate in schemes that lack many of the attributes of genuine insurance. The IRS has long disallowed the related tax benefits claimed by taxpayers. The … Read More