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Delayed implementation of 1099-K – Third party payments

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

By |2023-01-06T21:17:54+00:00December 27th, 2022|Categories: Business, Individuals|Tags: , , , , , |

Well-known tax preparation software sent financial information to Meta

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

By |2022-11-23T19:40:41+00:00November 23rd, 2022|Categories: Business, Individuals|Tags: , , , , , , , , , , , |

IRS relieves penalties for personal and business 2019 and 2020 tax returns

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

By |2022-08-25T14:16:48+00:00August 25th, 2022|Categories: Business, Individuals|Tags: , , , , |

IRS increases mileage rate to 62.5 cents per mile

In the IRS IR-2022-124 released on June 9, 2022, the IRS increased the standard mileage rate for the second half of 2022. "The IRS is adjusting the standard mileage rates to better reflect the recent increase in fuel prices," said IRS Commissioner Chuck Rettig. "We are aware a number of unusual factors have come into

By |2022-06-11T16:22:36+00:00June 9th, 2022|Categories: Business, Individuals|Tags: , , , |

The IRS destroyed over 30m paper returns

According to a new report from the Treasury Inspector for Tax Administration, the IRS would have destroyed more than 30 million paper returns due to the backlog. Note that this was an intentional decision and the IRS has communicated that there should be no repercussions to the taxpayers. However, the IRS might request additional documentation

By |2022-06-01T03:26:28+00:00May 11th, 2022|Categories: Business, Individuals|Tags: , , , , |

IRS suspends mailing of additional letters and plans hiring of 10,000 full time workers

In early February, the IRS announced the suspension of more than a dozen additional letters, including the mailing of automated collection notices normally issued when a taxpayer owes additional tax, and the IRS has no record of a taxpayer filing a tax return. As the IRS goes into the 2021 tax season, there are still

By |2022-03-05T03:54:00+00:00March 4th, 2022|Categories: Business, Individuals|Tags: , , , , , , , |

IRS tips on home office deductions

In the Tax Tip 2022-10, the IRS listed some of the rules and tips to deduct your home office. Note that to claim the home office deduction, taxpayers generally must exclusively and regularly use part of their home or a separate structure on their property as their primary place of business. In some cases, if

By |2022-03-05T03:33:27+00:00February 2nd, 2022|Categories: Business|Tags: , , , , , , , , , |

Check your mail for IRS letters 6419 (advance child credit) and 6475 (Third stimulus)

Advance child tax credit payments letter can help people get remainder of 2021 credit To help taxpayers reconcile and receive all the 2021 child tax credits to which they are entitled, the IRS started sending Letter 6419, 2021 advance CTC, in late December 2021 and will continue into January. This letter includes the total amount

By |2022-02-23T21:29:02+00:00January 25th, 2022|Categories: Individuals|Tags: , , , , , , , , |

IRS released the standard mileage rates for 2022

In mid December 2021, the IRS released the standard mileage rates for the use of a car (also vans, pickups or panel trucks) beginning January 2022 will be: 58.5 cents per mile driven for business use, up 2.5 cents from the rate for 2021, 18 cents per mile driven for medical, or moving purposes for

By |2022-01-04T14:23:59+00:00December 20th, 2021|Categories: Business|Tags: , , , , , |

New items and changes impacting 2021 taxes

In the Issue Number: COVID Tax Tip 2021-187, the IRS makes references to several items that are new or have changed for 2021, such as: Changes to the charitable contribution deduction Taxpayers who don't itemize deductions may qualify to take a deduction of up to $600 for married taxpayers filing joint returns and up to

By |2021-12-17T18:41:22+00:00December 18th, 2021|Categories: Individuals|Tags: , , , , , , , , |
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