Tax News
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SIDE GIG? YOU MAY OWE MORE THAN JUST INCOME TAX
The gig economy is integral to millions of Americans’ livelihoods, and just like the silent partner they are, the IRS wants its share. The IRS says the gig economy includes any “activity where people earn income providing on-demand work, services or goods,” such as ride-sharing and delivery services, running errands, and selling products online. That […]
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IRS POSTPONES APRIL 15 FILING DEADLINE IN TEXAS
The Internal Revenue Service announced that victims of this month’s winter storms in Texas will have until June 15, 2021, to file various individual and business tax returns and make tax payments. This is pursuant to a disaster declaration issued by the Federal Emergency Management Agency (FEMA). Taxpayers in other states impacted by these winter […]
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IRS ASKED TO EXTEND THE 2020 TAX RETURN FILING DEADLINE PAST APRIL 15, 2021
On February 18, 2021 the U.S. House Ways and Means Committee wrote a letter to the IRS Commissioner Charles P. Rettig requesting an extension of time to file 2020 tax returns past the statutory date of April 15, 2021. As we recall, last year the IRS extended the filing deadline from April 15 to July […]
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IRS Temporarily Exempts PPP Loan Proceeds from Levy
The Internal Revenue Service (IRS) has temporarily modified its levy procedures, through September 15, 2021, for taxpayers that received Paycheck Protection Program (PPP) loans. The SBA requires eligible small businesses to use their PPP loan proceeds to pay certain expenses, including payroll, health insurance, retirement benefits, and rent. PPP loans may be fully forgiven when […]
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Self-Employed Individuals Entitled to $5,110 Tax Credit if Affected by COVID
Self-employed individuals, including sole proprietors and partners in partnerships, should not forget to claim the new credit for sick leave or family leave that is available on their 2020 Forms 1040 if they qualify. The IRS has released Form 7202 (Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals) and its instructions. Self-employed […]
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Why Does the SBA Take So Long to Approve My PPP Loan?
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 […]
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WHAT HAPPENS TO YOUR “MISSING” STIMULUS MONEY IF YOU GET AN EXTENSION TO FILE YOUR TAX RETURN?
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 […]
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IRS PENALTY RELIEF FOR THOSE AFFECTED BY COVID
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. […]
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ANOTHER TRILLION DOLLAR SPENDING PACKAGE WITH RELIEF FOR INDIVIDUALS AND SMALL BUSINESSES – CCA 2021
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 […]
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FINAL IRS REGULATIONS PERMIT TRUNCATED SSN ON FORMS W-2
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 […]
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