AMERICAN RESCUE PLAN BOOST REFUNDS

American rescue plan boost refunds. IRS urges Americans to file, even if they haven’t for years. The Internal Revenue Service urged Americans to file a 2021 federal income tax return so they can take advantage of key tax benefits in the American Rescue Plan and other legislation recently passed by Congress. Individuals and families can […]

REPUBLICANS RIP INTO DEMOCRATIC STIMULUS

Republicans rip into democratic stimulus. With the election mostly settled, and the CODI-19 pandemic increasing at an alarming rate, most economist have agreed that a new stimulus proposal is needed to boost the economy. In a matter of weeks, thousands of individuals will be thrown out onto the streets, due to the inability to pay […]

YOUR TAXES WHILE RECEIVING UNEMPLOYMENT

Your taxes while receiving unemployment. Millions of Americans have lost their job during the COVID-19 outbreak and are relying on unemployment benefits as they pay their bills and re-start their career. That’s a serious challenge they face right now. Without some planning, they could also face a future problem–an unanticipated, unbudgeted tax bill in 2021. […]

TIME SENSITIVE ACTS IN NOTICE 2020-23

Time sensitive acts in notice 2020-23. In response to the Covid-19 outbreak, the Treasury and IRS initially provided individuals and businesses limited filing and payment relief in Notices 2020-17 and 2020-18. This relief generally applied only to federal income tax returns and payments (including self employed tax payments) due April 15, 2020, for 2019 tax […]

TAX DOCUMENTS YOU NEED TO FILE RIGHT

Tax documents you need to file right. When most people celebrate the new year, tax returns aren’t generally on their minds. But if you’re expecting to get a tax refund and itching to have that money in your pocket as soon as possible, there’s a good reason to want to have your return prepared quickly […]

RETIREMENT CONTRIBUTION LIMIT RISES

Retirement contribution limit rises. The Internal Revenue Service announced that employees in 401 (k) plans will be able to contribute up to $19,500 next year. The IRS announced this and other changes in Notice 2019-59, posted on IRS.GOV This guidance provides cost of living adjustments affecting dollar limitations for pension plans and other retirement related […]

CLAIMING CASUALTY LOSS IS TRICKY

Claiming casualty loss is tricky. Hurricane Dorian a category 5 storm, has been called the strongest storm to ever threaten the east coast with maximum sustained winds of over 185 mph. According to the National Hurricane Center, “Although gradual weakening is forecast, Dorian is expected to remain a powerful hurricane during the next couple of […]

TAXPAYER FIRST ACT OF 2019

Taxpayer first act of 2019. This legislation was signed into law on July 1, 2019. The focus of the bill is to enact changes in the IRS’s organizational structure which includes customer service, enforcement procedures, management of information technology, and improving interactions with taxpayers. By September 2020, the IRS is required to draft new organizational […]

MICRO CAPTIVE INSURANCE SCHEMES

Micro captive insurance schemes. The Internal Revenue Service has announced the mailing of a time limited settlement offer for certain taxpayers under audit who participated in abusive micro captive insurance transactions. Taxpayers eligible for this offer will be notified by letter with the applicable terms. Taxpayers who do not receive such a letter are not […]

COURT DENIES INNOCENT SPOUSE RELIEF

Court denies innocent spouse relief. In our ongoing series of tax court related articles, this discusses on particular case, Traci Newburn v. Commissioner of the Internal Revenue Service. The Judge, Buch, designated a bench opinion in an innocent spouse case that highlights some lesser known nuances of the conditions and factors analyzed.  Section 6015(f) requires […]