The American Institute of CPAs sent a letter to the Small Business Administration (SBA) on February 3, 2021 urging it to correct the processing errors and delays that small businesses are experiencing with the current Paycheck Protection Program (PPP) loan application system. “PPP loans have proven to be a critical lifeline for the millions of […]

As always, if you cannot file your US Individual Tax Return (Form 1040) by the April 15 deadline, the Internal Revenue Service (IRS) says, “No Problem.” Just file Form 4868, Application for Automatic Extension of Time to File US Individual Tax Return and you now have until October 15 to file your return. But what […]

Penalty relief due to reasonable cause: If you were affected by the pandemic or other circumstances, the IRS may be able to remove or reduce some penalties due to reasonable cause, but only if you tried to comply with the tax law but were unable to do so due to facts and circumstances beyond your control. […]

The $900 billion coronavirus relief deal that Congress passed and President Trump signed into law on December 27, 2020 (H.R. 133 – Consolidated Appropriations Act, 2021) (the “Act”) and the $1.4 trillion omnibus spending legislation to fund the government include important tax breaks for Americans for 2020 and beyond. Stimulus checksThe biggest tax benefit for […]

The Internal Revenue Service (IRS) has issued final regulations (TD 9861, Use of Truncated Taxpayer Identification Numbers on Forms W-2, Wage and Tax Statement, Furnished to Employees), which allow employers to truncate employees’ Social Security Numbers on copies of Forms W-2 that are furnished to employees, effective for Forms W-2 required to be furnished after […]

According to the Taxpayer First Act, the IRS was required to provide digital signature options for submitting Form 2848, Power of Attorney, and Form 8821, Tax Information Authorization by July 2019. By signing the forms, taxpayers are giving tax professionals or other third parties permission to access or view their tax information. Currently, submitting and […]

On November 17, 2020, the IRS reiterated its position that taxpayers may not deduct expenses to the extent they result in forgiveness of a Paycheck Protection Program (PPP) loan. The IRS’s position is on based Internal Revenue Code Section 265, which denies a deduction for expenses allocable to tax-exempt income, i.e. the PPP loan forgiven. […]

Background The results of the November 3, 2020 election, with Democratic control of the White House and the House of Representatives and apparent Republican control of the Senate makes major changes in the Tax Code difficult in the next Congress.  Any number of upcoming events could end the apparent stalemate, including the January 2021 Georgia […]

2020 Post-Election Tax Policy Update

The Security Summit, a coalition of the IRS, state tax agencies, and the private sector tax industry, is warning taxpayers about a new text scam that tricks people into disclosing bank account information under the guise of receiving the $1,200 Economic Impact Payment (EIP). The text message states: “You have received a direct deposit of […]