Yesterday, Victor Garrido, CPA, EA, had a zoom call presentation about the "Beneficial Ownership Information (BOI) Report to avoid criminal and civil penalties" for the Greater Philadelphia Chamber of Commerce and his members. As we mentioned in our presentation, there are items that will keep changing regarding the Corporate Transparency Act passed in 2021. One
On January 23rd, the IRS released communication IR-2024-19 which provide more details on their Simple Notice Initiative. The IRS releases around 170 million notices / letters each year to taxpayers and the IRS wants to make it easier for the taxpayer to understand them, and hopefully reduce the number of follow up calls and communications
On January 10th, 2024, the IRS communicated that will remove/waive failure to pay penalties on unpaid taxes less than $100k for tax years 2020 or 2021. The rational for this removal of penalties is because the IRS suspended sending automated notices during the pandemic so certain taxpayers were not aware of any amounts due for
Yesterday, the IRS made official the delay on the 1099-k implementation for the $600 threshold for 2023. In 2023, the 1099-k will be released if the taxpayer receives over $20,000 and has more than 200 transactions in 2023. Based on the IRS website, the current plan for 2024 is the threshold to be $5,000 and
Over the summer and until now, we have observed a higher number of Notices of Deficiencies from the IRS in forums, colleagues discussions and through clients' consultations. This trend seems in line with other tax authorities at the State and Local levels (i.e. Philadelphia) were they put on hold the automatic notices and some collection
The IRS will received approximately 44 million forms 1099-k (this form is for electronic transactions over $600 during the year and related to applications for payment settlement entities such as Vemno, eBay, Paypal, etc.) in 2024 related to the 2023 tax year from about 14 million received in the prior year. Note that Zelle is
The IRS is reporting the tax gap (amount of money that taxpayers are not settled with the Federal tax authority or the true tax liability versus the paid tax on time) amounts to around $668 billion for 2021. The breakdown is as follows (per IRS blog), comprising three components: Nonfiling, which means tax not paid
After working on an offer in compromise for a married client with over $100k in Federal tax outstanding, we are finally closing an offer in compromise (forms 433-A and 656) that has been discussed with the IRS agent as there are no assets to cover the liabilities and the taxpayers' income is just to cover
The IRS is requesting around $28.9 billion in taxes for the period from 2004 to 2013. The subject is related to transfer pricing issues to shift profits from a higher taxable jurisdiction to a lower taxed one, such as Puerto Rico. Daniel Goff, Microsoft Corporate Vice President, Worldwide Tax and Customs, has wrote a blog
The Federal Trade Commission communicated to five tax preparation companies that they could face penalties of up to $50,120 per violation for the misuse of consumers' confidential data. These preparation tax companies were sharing sensitive information such as finance, marital status, number of children and more and monetizing (getting financial benefit) from the taxpayer /
