EXTRA EXTENSION OF TIME TO FILE PART TWO

Extra extension of time to file part two. We previously discussed the December 2021 tornadoes and flooding victims, who were given additional time to file their IRS returns by a memo put out by the IRS. But other reasons exist, given by the IRS, for certain groups to get an automatic extension of time to […]

IRS ADDING CRYPTO QUESTION TO RETURNS

IRS adding crypto question to returns. In IRS news release that all American taxpayers must answer the question on the tax form about cryptocurrency. The question, which on form 1040 is just below the address area, says, “At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in […]

FAMILY GETS PRISON FOR COVID FRAUD

Family gets prison for Covid fraud. Three members of a San Fernando Valley family have been sentenced two of them in abstentai after they fled justice following their convictions at trial–to years in federal prison for scheming to fraudulently obtain more than $20 million in Paycheck Protection Program and Economic Injury Disaster Loan Covid 19 […]

DISTRIBUTIONS FROM CARES PLANS

Distributions from cares plans. The IRS explained how qualified individuals can take coronavirus related loans and distributions from eligible retirement plans (Notice 2020-50). Qualified individuals receive favorable tax treatment for those distributions under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136. Distributions: A coronavirus related distribution is not subject to the Sec. […]

INSURANCE POLICY AVOID TAX

Insurance policy avoid tax. The new hot thing in tax avoidance has a boring old name: insurance dedicated funds. Introduced in the 2000s, IDFs have become  so mainstream that banks such as JPMorgan Chase and Co. and Goldman Sachs Group Co. are offering them. Hedge funds like Paulson & Co. and Israel Englander’s Millennium Partner’s […]

IRS CREATES CASE MANAGEMENT OFFICE

IRS creates case management office. The Internal Revenue Service has created the new Enterprise Digitalization and case Management office, which will spearhead IRS efforts to empower taxpayers and IRS employees to rapidly resolve issues in a simplified digital environment. The office’s efforts will support overall IRS modernization and implementation of long term changes stemming from […]

DIFFERENCES IN SECOND STIMULUS PLANS

Differences in second stimulus plans. The size of the already passed stimulus package is massive. The $2.4 trillion exceeds some of the world’s largest economies, including the $21 trillion economy of Italy, the $1.9 trillion economy of Brazil, and the $1.7 trillion economy of Canada. Only six other countries (China, Japan, Germany, United Kingdom, France, […]

BILLIONS IN TAX BREAKS FOR SLUMP

Billions in tax breaks for slump. New tax breaks expected to total about $650 billion are starting to flow to U.S. businesses, giving a quick cash infusion and longer term help to ride out the coronavirus induced economic downturn. Companies reported tax deferrals or benefits exceeding $100 million each include fast-casual chain Chipotle Mexican Grill […]

UNEMPLOYMENT AND A STIMULUS CHECK

Unemployment and a stimulus check. The CARES Act became law on recently with several financial aid provisions for American households. Two signature pieces of the stimulus package are now arriving–stimulus checks and enhanced unemployment benefits. As the unemployment rate continues to increase these benefits are more valuable that ever. Stimulus checks. Most taxpayers are getting […]

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 […]