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IRS begins audits of corporate jet usage

Yesterday, the IRS released IR-2024-46 indicating that will put more focus on the audits of corporate jets. There is plenty of post over social media from the full deduction of corporate jets even on the last day of the year and other claims, which might not be applicable to every case. The IRS sends a

By |2024-02-22T16:40:33+00:00February 22nd, 2024|Categories: Business|Tags: , , , |

IRS still finalizing some forms for e-file acceptance

At the present time, the IRS is still finalizing some forms for the e-file acceptance. As a result, there could be rejections or errors on the e-file in certain forms or schedules are e-filed as part of the tax return. The U.S. Government Accountability Office GAO "...  provides fact-based, nonpartisan information to Congress. Often called

By |2024-02-19T04:26:10+00:00February 19th, 2024|Categories: Business, Individuals|Tags: , , , , , , , , , , , , , |

The IRS to implement the Simple Notice Initiative

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

By |2024-01-24T18:18:21+00:00January 24th, 2024|Categories: Business, Individuals|Tags: , , , |

IRS will waive failure to pay penalties for 2020 or 2021

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

By |2024-01-24T16:49:28+00:00January 14th, 2024|Categories: Business, Individuals|Tags: , , , , , , |

The IRS delays again the 1099k implementation and potential new thresholds

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

By |2023-11-22T16:47:13+00:00November 22nd, 2023|Categories: Business, Individuals|Tags: , , , , |

More notice of deficiencies in circulation and potential last resort, U.S. Tax Court

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

By |2023-11-17T17:43:10+00:00November 17th, 2023|Categories: Business, Individuals|Tags: , , , , , , , , |

IRS to receive an additional 30 million 1099-k

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

By |2023-11-17T16:17:00+00:00November 17th, 2023|Categories: Business, Individuals|Tags: , , , , , , , |

IRS estimated tax gap of around $668 billion for 2021

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

By |2023-10-14T21:00:46+00:00October 14th, 2023|Categories: Individuals|Tags: , , , , , , , , |

CP508R – Reversal of notice of certification… to the State Department (you can get your passport back)

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

By |2023-10-13T13:19:48+00:00October 13th, 2023|Categories: Individuals|Tags: , , , , , , , |

IRS release a notice of adjustment for $29 billion to Microsoft

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

By |2023-10-13T13:36:49+00:00October 12th, 2023|Categories: Business|Tags: , , , , , , , , , |
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