Do you know your rights as a U.S. taxpayer? Collectively, your 10 rights are called the Taxpayer Bill of Rights. One is “the right to confidentiality.” That includes: the IRS generally won’t share information you provide with any third parties, without your permission; the agency generally can’t contact third parties (such as employers or banks) … Read More
The Coronavirus Aid, Relief and Economic Security (CARES) Act made changes to excess business losses. This includes some changes that are retroactive and there may be opportunities for some businesses to file amended tax returns. If you hold an interest in a business, or may do so in the future, here is more information about … Read More
The IRS has issued guidance on certain provisions of the SECURE Act, including the repeal of the maximum age for traditional IRA contributions. The law eliminated the restriction that a taxpayer couldn’t contribute to a traditional IRA starting in the year he or she reached age 70½, even if the person continued to work. The … Read More
The IRS has issued final regulations on the base erosion and anti-abuse tax (BEAT). To limit profit-shifting, the Tax Cuts and Jobs Act (TCJA) added a new tax, the BEAT. The BEAT limits the ability of large U.S. corporations to shift profits from the United States by making deductible payments to their affiliates in low-tax … Read More
U.S. Treasury officials report that nearly 70% of $1.6 billion in Economic Impact Payments (EIPs) that were sent to deceased people has now been recovered, according to the General Accountability Office (GAO). However, the GAO stated it “was unable to verify that amount” at this time. In a June report about the federal response and … Read More
If your business was fortunate enough to get a Paycheck Protection Program (PPP) loan taken out in connection with the COVID-19 crisis, you should be aware of the potential tax implications. PPP basics The Coronavirus Aid, Relief and Economic Security (CARES) Act, which was enacted on March 27, 2020, is designed to provide financial assistance … Read More
The IRS has temporarily halted certain outgoing mail. Due to a backlog of unopened mail created by the COVID-19 lockdown, payments from taxpayers that have a balance due may not have been posted to their accounts. As a result, the IRS will suspend automatic mailing of follow-up notices that remind taxpayers to make payments. “This … Read More
Does your business receive large amounts of cash or cash equivalents? You may be required to submit forms to the IRS to report these transactions. Filing requirements Each person engaged in a trade or business who, in the course of operating, receives more than $10,000 in cash in one transaction, or in two or more … Read More
The IRS reminds taxpayers to review their withholding annually. For a step-by-step method of determining the right amount to withhold, they can use the Tax Withholding Estimator, an online IRS tool. Employees who need to adjust their withholding should submit a new Form W-4 (Employee Withholding Certificate) to their employers soon. The list of those … Read More
Employees or independent contractors? It’s not only for-profit companies that struggle with the question of how to classify workers for federal tax purposes. Not-for-profit organizations must withhold and pay Social Security, Medicare and unemployment taxes for employees, but not for contractors. (There may also be state tax responsibilities.) But be careful before you decide that … Read More