IRS TO RESUME VIDEO TAX PREPARER VISITS

IRS to resume video tax preparer visits. The Government Accountability Office, or GAO, recommended in a report, to which the IRS agreed, that the service should test the feasibility of holding videoconference visits with tax returns preparers it flags as posing a high risk for submitting erroneous refundable credit claims, to replace in person visits […]

SENATE AND POST WAYFAIR SALES TAX BURDEN

Senate and post wayfair sales tax burden. In a hearing before the U.S. Senate, Small Business owners told a group of Senators how the interstate reach of state and local sales taxes authorized by the Supreme Court in South Dakota v Wayfair, Inc. has imposed new costs and other burdens. The committee also heard from […]

REQUIRED DISTRIBUTIONS UNDER SECURE ACT

Required distributions under secure act. During the Covid pandemic, thousands of individuals drew down retirement accounts, just to get by. Because of the fact that those retirees now had lower amounts for retirement, Congress enacted legislation to let them contribute more to future retirement accounts. But then they also enacted the Secure Act, and some […]

IRS PROPOSES REGULATION TO ESTATE TAX

IRS proposes regulation to estate tax. The IRS in regulation 118913-21, provided an exception to the “clawback” rule that preserves the benefits of the temporary higher and gift tax basic exemption exclusion amount. The special IRS rule that preserves the benefits of the estate and gift tax payable on the decedent’s lifetime gifts. Left for […]

PROPOSAL TO RAISE REVENUE WITH MORE TAXES

Proposal to raise revenue with more taxes. After President Biden’s “Build Back Better” went down in flames due to Sen. Manchin’s holdout vote, it seems like another approach is in the works. President Biden has proposed a massive budget that is over $5 trillion dollars, the largest in United States history. Yet, it does very […]

FRENZY OF TAX FILING FOR TAX REFUNDS

Frenzy of tax filing for tax refunds. People are filing their taxes at a blistering pace so far this year, underscoring how serious Americans are about getting any tax refund due or any stimulus check money they missed last year. The IRS began accepting and processing 2020 tax returns slightly later than usual because its […]

SIMPLIFIED ACCOUNTING RULES FOR BUSINESS

Simplified accounting rules for business. The IRS has finalized updates to various tax accounting regulations to adopt the simplified tax accounting rules for small business enacted by the tax law known as the Tax Cuts and Jobs Act. The Regulations issued in July with a few changes in response to comments. For years beginning in […]

ECONOMIST SAY ANOTHER STIMULUS CRITICAL

Economist say another stimulus critical. Negotiations over a second round of economic stimulus have been at an impasse for several months, after Congress came together and passed the bipartisan $2.2 trillion CARES Act in march. That legislation included one time $1200 direct stimulus checks to most Americans as well as an additional $600 per week […]

COALITION WANTS CHANGE FOR PPP LOANS

Coalition wants change for PPP loans. With all the talk that large companies were getting the bulk of the Paycheck Protection Program loans, other criticisms have been forthcoming also. One has been that the way the pay calculation is made is not an accurate determination for what a company really needs. An AICPA led small […]

VIRUS EMPLOYER TAX CREDITS FORM

Virus employer tax credits form. The IRS issued a new form and instructions,  irs.gov/pub/irs-pdf/i7200.pdf  for employers to use to obtain advance payments of three tax credits that were created to help businesses cope with the coronavirus pandemic. Employers may file new Form 7200. Advance Payment of Employer Credits Due to Covid 19, to obtain advances […]