TAX COURT CASE RELYING ON TAX PREPARER

Tax Court case relying on tax preparer. Erik and Aspasia Oosterwijk filed their 2017 tax return late and now seek a refund for the IRS’s late file penalties because their accountant failed to e-file for an extension and then gave them incorrect advice on how to obtain an extension and stop the penalties from accruing. […]

CONGRESS TO HEAR FROM IRS COMMISSIONER

Congress to hear from IRS Commissioner. IRS Commissioner Charles Rettig will report on the current tax filing season to the House Ways and Means Committee’s Oversight Subcommittee next week, the committee’s chair, Bill Pascrell Jr, D-N.J. said. The hearing will be webcast live and available at the Ways and Means Committee’s website. The Oversight Subcommittee […]

DISALLOWED TRANSPORTATION PART TWO

Disallowed transportation part two. The IRS has issued regulations implementing changes to Section 274 that disallow a deduction for QTF or Qualified Transportation Fringe. The Proposed regulations also include a special rule for certain mixed parking expenses to reduce administrative burdens for taxpayers and simplify calculations. While Notice 2018-99 addressed only expenses related to parking […]

SMALL HOSPITALS BILKED PART TWO

Small hospitals bilked part two. Representatives of the American Hospital Association, a lobbying group for the country’s largest hospitals, communicated with Alex M. Azar, the department secretary, and Eric Hargan, the deputy secretary overseeing the funds. Chip Kahn, president of the Federation of American Hospitals, which lobbies on behalf of for profit hospitals, said he […]

COMMON TAX MISTAKES TO AVOID

Common tax mistakes to avoid. Small errors lead to expensive tax bills. Tax software–of the old fashioned paper forms and calculations–won’t help much when the numbers that human beings use in the first place are flawed. Finding and entering tax information often isn’t always easy. “That part of the process requires reading comprehension and critical […]

CONGRESS MAY LET YOU USE RETIREMENT

Congress may let you use retirement. You may soon be able to withdraw up to $100,000 from your 401(k) retirement plan amid the coronavirus outbreak. Just make sure you read the fine print before you jump in. The Senate is currently negotiating over a package of COVID-19 stimulus measures, one of which allows savers to […]

NEW IRS STANDARD MILEAGE RATES

New IRS standard mileage rates. The optional standard mileage rates for business use of a vehicle will decrease slightly in 2020 after increasing significantly in 2019, the IRS announced in Notice 2020-05. For business use of a car, van, pickup truck, or panel truck, the rate for 2020 will be 57.5 cents per mile in […]

TAXES AND THE 2020 ELECTION

Taxes and the 2020 election. The IRS could be forced to release President Trump’s taxes in the heat of the 2020 election. The administration is betting that it can drag out the coming case beyond next year’s elections. That could prove a bad strategy. President Trump’s bet that it’ll take years to resolve a coming […]