As the interest rates for money market funds are over 5%, the estimated tax penalties that the tax authorities charge if no payment was made when due and other cases is around 8%. To avoid having to pay that extra 8%, then, taxpayers should: Make tax payments when due, especially estimated tax payments Review any
On April 4th, 2024, the IRS shared that the Federal Communications Commission issued a cease and desist letter to Veriwave Telco as the company was making millions of calls (prerecorded message) regarding a National Tax Relief Program. "... The FCC’s Enforcement Bureau today issued a cease-and-desist letter against Veriwave Telco. The letter ordered Veriwave Telco
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
Join us this Thursday at 12 PM for our next event, "2024 Small Business Taxes & BOI Updates: Stay Compliant, Stay Informed." ? Navigate the 2024 tax landscape with confidence! Join our webinar for 2024 tax updates, red flags, and insights on the new BOI requirement. ? In this informative session, Victor Garrido, Managing Member
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 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
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 /
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).
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
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
