2021 AND 2022 IRS LACKED ADEQUATE SERVICE

2021 and 2022 IRS lacked adequate service. According to a report issued by the National Taxpayer Advocate’s Office, in 2021 the IRS only answered 12 percent of all calls made to its offices by the public. The bad news is that in 2022 it is probably going to worse, once that report surfaces. The U.S. […]

COVID SLOWS DOWN TAX REFUNDS AT IRS

Covid slows down tax refunds at IRS. Due to the government lockdown of the IRS during the IRS pandemic’s winter months, both in 2020 and 2021, the IRS has had a difficult time catching up with the Tax Returns that have been filed, and at the same time they are trying to overhaul the oldest […]

IRS BEGINS CORRECTING TAX RETURNS

IRS begins correcting tax returns. The Internal Revenue Service will begin issuing refunds to eligible taxpayers who paid taxes on 2020 unemployment compensation that the recently enacted American Rescue Plan later excluded from taxable income. The IRS identified over 10 million taxpayers who filed tax returns prior to the American Rescue Plan of 2021 becoming […]

PRESIDENT TO RAISE TAXES ON THE RICH

President to raise taxes on the rich. Democrats have spent the last several years clamoring to raise taxes on corporations and the rich, seeing that as a necessary antidote to widening economic inequality and a rebuke of President Donald signature tax cuts. Now, under President Biden, they have a shot at ushering in the largest […]

AMERICANS DRAINING RETIREMENTS DUE TO COVID

Americans draining retirements due to covid. Nearly 60% of Americans withdrew from their retirement accounts during the pandemic, according to a recent survey from finance magazine Kiplinger and Personal Capital, a wealth management organization. The pandemic caused many people to borrow from their future in order to meet everyday needs throughout state shutdowns and the […]

BILLIONAIRE SHETH LEAVING VISTA EQUITY

Billionaire sheth leaving vista equity. Central Texas billionaire Brian Sheth is resigning as president of Austin based Vista Equity Partners in the wake of a highly publicized tax evasion case against Vista Equity founder, chairman and CEO Robert F. Smith. Sheth, 45, will “depart the firm effective immediately,” Vista Equity said in a news release […]

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 […]

ADVISORY COMMITTEE RELEASES ANNUAL REPORT

Advisory committee releases annual report. The Electronic Advisory Committee released its annual report to Congress, featuring recommendations that focus on the prevention of identity theft and refund fraud. The ETAAC is a public forum whose members work closely with the Security Summit, a joint effort of the IRS, state tax administrators and the nation’s tax […]

THERON JOHNSON v COMMISSIONER

Theron Johnson v Commissioner. In our ongoing coverage of Tax Court cases, this case addresses a long standing issue–substantiating business travel expenses. If you own a business, deductions can be taken for the ordinary and necessary expenses relating to the business activities, including certain travel expenses. However, to qualify for any deductions, strict recordkeeping requirements […]

$1.4 BILLION IN STIMULUS TO THE DEAD

$1.4 billion in stimulus to the dead. More than a million Americans who had died received COVID-19 stimulus payments totaling $1.4 billion, a government watchdog said in a report to Congress. The finding is part of a sweeping review of the federal government’s response to the nonpartisan  congressional agency. The report paints a clearer picture […]