TIGTA CRITIQUES PROTECTION OF DATA

TIGTA critiques protection of data. The IRS continues to have challenges protecting taxpayer data, and especially ensuring that its various applications provide complete and accurate audit trails, according to the Treasury Inspector General for Tax Administration (TIGTA). TIGTA issued a report that highlights IRS shortcomings and challenges, titled Most Internal Revenue Service Applications do Not […]

SMALL HOSPITALS BILKED IN BAILOUT FUNDS

Small hospitals bilked in bailout funds. This past spring, Providence Hospital received at least $509 million in government funds, one of the many wealthy beneficiaries of a federal program that is supposed to prevent health care providers from capsizing during the coronavirus pandemic. With states restricting hospitals from performing elective surgery and other nonessential services, […]

IRS INCREASES AUDITS TO HIGH INCOMES

IRS increases audits to high incomes.  As part of a larger effort to ensure compliance and fairness, the Internal Revenue Service announced that it will step up efforts to visit high income taxpayers who in prior years have failed to timely file one or more of their tax returns. Following the recent and ongoing hiring […]

IRS CLARIFIES NEW QUALIFIED EQUITY GRANTS

IRS clarifies new qualified equity grants. In response to requests from taxpayers and employers, the IRS issued Notice 2018-97 to provide initial guidance on new Sec. 83(i), which was added to the Code by the law known as the Tax Cuts and Jobs Act, P.L. 115-97. Sec. 83(i) permits eligible private company employees to elect […]

SHUTDOWN CAUSED SERVICE ISSUES

Shutdown caused service issues. Thats the conclusion of the IRS watchdog who overseas many aspects of the IRS. Disruptions from last months partial government shutdown caused a “shocking” deterioration in the IRS telephone help for taxpayers in the first week of the filing season, the agency watchdog said in a report released. In the week […]

FILING THE FINAL RETURN OF A DECEASED PERSON

Filing the final return of a deceased person. It isn’t that complicated if you follow some simple instructions. In general, the final individual income tax return of a decedent is prepared and filed in the same manner as when they were alive. All income up to the date of death must be reported and all […]

Winners and losers from new kiddie tax

Winners and losers from new kiddie tax. There will have new winners and losers so beware parents and grandparents. It will also raise the cost of giving sharply in some situations. The tax is a special levy on a child’s “unearned” income above $2100. It typically falls on investment income such as dividends, interest and […]

IRS HELP FOR SMALL BUSINESSES

IRS help for small businesses. The IRS website has publications that can help provide tips and useful information for taxpayers, including detailed information for small businesses and IRS help. The IRS reminds small businesses of the many free products available at their website, located at IRS.GOV. Products ranging from online calculators, printable calendars, step by […]

TAX REFORM HELPING INCREASE INTEREST RATES

Tax reform helping increase interest rates. President Trumps tax reform helping increase interest rates. That must be the conclusion when one realizes that the economy is on all cylinders and about to go into overdrive. When the U.S. economy fires on all cylinders the eventual result is an overheating of the economic engine, and the […]