Since Connecticut enacted the first Pass Through Entity (PTE) tax in April 2018, more States have enacted or proposed this tax tool. It was around 14 in June 2021, around 30 in January 2023 and at the date of this article is 36 States and one localty (NYC) according to the AICPA listing (link below).
As announced in July 2023 and shared in the IRS Tax Tip 2023-98, the IRS will stop the unannounced visits. Note that there has been numerous cases of fraud with people impersonating IRS agent by mail, by phone and in person requesting outstanding tax liabilities or requesting payments to avoid liens or criminal charges. The
The IRS reminded taxpayers in mid June 2023 that the deadline to claim their 2019 refunds is approaching. The deadline is July 17, 2023. Note that the IRS has extended their refund window as usually it is three years. However, the three year window for 2019 was extended due to the Covid-19 pandemic. If no
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
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
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
