IRS GEARING UP FOR INCREASED COLLECTIONS

IRS gearing up for increased collections. The IRS has, as many businesses during the Covid pandemic, had a rough time lately. After being shut down for nearly 7 months during the initial outbreak of the virus, then starting up only to be shut down for a shorter period during the Delta variant, they fell behind […]

IRS HAS 2018 REFUND MONEY AVAILABLE STILL

IRS has 2018 refund money available still. In IRS Revenue Bulletin IR-2022-66, the IRS announced that is has nearly $1.5 billion in refunds for people who have not filed a 2018 tax return. Those individuals have until this years filing date, April 17th, 2022, to file, if they want to claim their portion of that […]

Avoiding tax on your 401 (k) part two

Avoiding tax on your 401 (k) part two. Given the governmental need for more revenue, due to the increased spending on the once in a generation health crisis, the Retirement Plans of Americans have come under scrutiny from the Congress, as a way to bridge the funding gap. And 401 (k)s are in the cross […]

TREASURY WARNS OF DIFFICULT TAX FILING YEAR

Treasury warns of difficult tax filing year. Treasury Department officials warned last month that this year’s tax season will be a challenge with the IRS starting to process returns on January 24th. That’s largely due to the IRS sizable backlog of returns from 2021. As of December 31, the agency had 6 million unprocessed returns–a […]

FEDERAL AID WILL HURT TAX CUTS

Federal aid will hurt tax cuts. A condition attached to $350 billion in relief for state and local governments by the American Rescue Plan, P.L. 117-2—that states may not use the money to offset their own tax reductions—may prove problematic, and is perhaps unconstitutional, tax practitioners say. The Coronavirus State Fiscal Recovery Fund appropriates $220 […]

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 […]

MANAGE TAXES FOR YOUR GIG WORK

Manage taxes for your gig work. What is the gig economy ? The gig economy–also called sharing economy or access economy–is a activity where people earn income providing on demand work, services or goods. Often, it’s through a digital platform like an app or website. The gig economy is taxable. You must report income earned […]

GUIDE FOR REPORTING TIP INCOME

Guide for reporting tip income. Employers and employees in the service industries that involve tipping need to comply with a unique set of tax rules. Like wages, income tax, Social Security tax and Medicare tax must be paid on tip income. Tax professionals can share the following guide with clients and prospects to educate and […]

SHUTDOWN WILL HALT MANY IRS FUNCTIONS

Shutdown will halt many irs functions. Funding for many government agencies is scheduled to expire at midnight , which would trigger a partial shutdown of the federal government. The IRS is effected by the shutdown because it is not already funded through September 2019. Temporary funding for the IRS was enacted in the Continuing Appropriations […]

GOP TAX REFORM

GOP tax reform. The Trump administration and congressional Republicans are working toward unifying around a single GOP tax reform bill, aiming to pass the legislation this year. But there are still some key differences between the priorities of the White House and the Senate that need to be ironed out. Speaker Paul Ryan (R.-Wis.) and […]