It is extremely important to keep in mind the full strength of the US government against the citizens, and in this case, the authority of the IRS to access information without submitting summonses for collection purposes. The IRS can access bank information (banks), credit card statements (banks or financial institutions), and probably point of sale
According to different surveys, it seems that almost two out of five Americans have a side hustle. The pandemic, expansion of remote work, and the increase of living cost (inflation) has increased the number of people working on the side in addition to their regular job. We had numerous conversation with our clients to determine
The glitch in the system is if the "secondary" taxpayer (spouse 2) makes a payment, the system might not link the payment to the "primary" taxpayer (spouse 1) in the married filing jointly returns. There might be certain scenarios for this error to occur: Not electronic and is made by the secondary spouse. Electronic, is
As of 12/31/22, the City of Philadelphia did not renew the temporary sidewalk cafe license that allowed the restaurants during the pandemic to expand their activity outside in the street or parking spaces. We have been getting consultations on what it is potential the next step if I still want to serve my customers outside.
The IRS released on Dec 29th, 2022 a FAQ (Frequently Asked Questions) for clean vehicles credits for new, previously owned and commercial clean vehicles. This guide addresses the most common questions from taxpayers regarding if their vehicle qualifies for the credit, the amount of the credit, etc. Note that the tax software companies are working
The IRS announced on December 23rd, 2022 a delayed implementation of the 1099-k third party payments. This reporting requirement has been extremely controversial due to the low threshold to report, considering that many taxpayers use applications like Venmo, Zelle and others to transfer funds for personal activities. These transfers in aggregate over the year would
In the last months, we have reported some issues with popular tax software that was charging fees or hide the free version from users. In a recent investigation by The Markup, there was evidence that code in some of popular tax preparation software including TaxAct, TaxSlayer and H&R Block sent financial and tax information to
If you are a business in Philadelphia and have a loss, you can use that loss against the future profit in the next twenty year and offset that income. This change was approved by the City of Philadelphia in 2018, but required Pennsylvania approval which was granted recently. The New Jersey Small Business Development Center
Yesterday, the IRS announced a penalty relief program for personal and business tax returns related to 2019 and 2020 tax years. To qualify for the relief, the tax returns must be filed by September 30, 2022. We note that there is a first time abatement option granted by the IRS and this additional penalty relief
In the IRS Tax Tip 2022-123, the IRS reminds college students and any taxpayers that might claim them, that there are two education credits available for them: 1. American Opportunity tax credit Worth a maximum benefit of up to $2,500 per eligible student Only available for the first four years at a post-secondary or vocational
