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IRS Backlog is growing

One week to the end of the 2020 tax season (May 17, 2021), the IRS backlogs keeps growing mainly driven by manual reviews and checks due to the unemployment benefits exclusion ($10,200), stimulus checks (rebate credit) that might not have reported accurately in the 2020 tax return, and other items such as Earned income credit.

By |2021-05-08T19:57:00+00:00May 8th, 2021|Categories: Individuals|Tags: , , , , , , , , |

U.S. court authorizes IRS to get identities of crypto users

From the article below, it points out that the IRS is focusing more and more on crypto transactions. Initially, it was the disclosure requirement in the 1040 tax return to report if the taxpayer hold crypto currencies. The exact question is "At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire

By |2021-05-08T19:46:37+00:00May 8th, 2021|Categories: Individuals|Tags: , , , , , |

Offer in compromise – General information

The offer in compromise is an option when there is an IRS debt that the taxpayer cannot pay in full. The IRS considers the income, expenses (living expenses), and assets to potentially reach an agreement on a reduced amount. Note that the process is not easy and you have to qualify for the offer in

By |2021-05-08T17:59:12+00:00May 8th, 2021|Categories: Individuals|Tags: , , , , |

IRS2Go mobile app

In the recent IRS Tax Tip 2021-59, the IRS provides information on their IRS mobile app that allows you to check on refunds, make tax payments, etc. The IRS mobile app – IRS2Go – provides taxpayers with quick access to helpful IRS tools on their mobile devices. The app is free to download on any

By |2021-05-04T16:36:06+00:00May 4th, 2021|Categories: Individuals|Tags: , , , |

Around 29 million returns hold by the IRS

Over the past year, we have noted that the IRS processing times have been delayed due to the pandemic. During this 2020 tax season (Jan to May 2021), there has been delays in the processing of tax returns and several sources point to the change of tax laws during this tax season as one of

By |2021-04-24T18:14:35+00:00April 24th, 2021|Categories: Individuals|Tags: , , , , , |

IRS Estimated tax payments are due April 15 (Also, C Corp filing)

The IRS is reminding taxpayers that the 2021 estimated tax payments are due on April 15, 2021 as the estimated tax payments were not extended. Note that they were extended in prior year tax period. As a result, some taxpayers might be confused on this year's due date for estimated tax payments. Additionally, the tax

By |2021-04-08T16:53:43+00:00April 8th, 2021|Categories: Business, Individuals|Tags: , , , , , |

IRS has refunds totaling $1.3 billion for people who have not filed a 2017 federal income tax return

In the IRS Issue number IR-2021-75, the IRS indicates that there is $1.3 billion of refunds that have not been claimed by the taxpayers in 2017. Keep in mind, that the law provides a three-year window to claim a refund. Normally, April 15, 2021, is the deadline to claim a refund from tax year 2017

By |2021-04-08T17:09:01+00:00April 7th, 2021|Categories: Individuals|Tags: , , , , |

IRS to recalculate taxes on unemployment benefits; refunds to start in May

As you might now around March 2021, the IRS approved the $10,200 income exclusion for unemployment benefits. The IRS notice IR-2021-71 mentioned that there is no need to file an amended return and that the IRS will recalculate taxes on unemployment benefits. The IRS expects that the refunds will start in May, 2021 for those

By |2021-04-02T18:10:54+00:00April 2nd, 2021|Categories: Individuals|Tags: , , , |

Face masks and other personal protective are tax deductible medical expenses

On Friday 3/26/21, the Internal Revenue Service issued Announcement 2021-7 clarifying that the purchase of personal protective equipment, such as masks, hand sanitizer and sanitizing wipes, for the primary purpose of preventing the spread of coronavirus are deductible medical expenses. Link IRS - https://www.irs.gov/pub/irs-drop/a-21-07.pdf Link Bloomberg article - https://www.bloomberg.com/news/articles/2021-03-26/masks-and-hand-sanitizer-are-tax-write-offs-the-irs-says

By |2021-03-28T16:18:45+00:00March 28th, 2021|Categories: Individuals|Tags: , , , , , |

Tax deadline for individuals moved to May 17, 2021

The Treasury Department and Internal Revenue Service announced yesterday that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The IRS will be providing formal guidance in the coming days. We assume the State and local authorities might

By |2021-03-18T17:50:48+00:00March 18th, 2021|Categories: Individuals|Tags: , , , |
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