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 […]

The Internal Revenue Service (IRS) announced on Monday, November 02, 2020 a number of changes designed to help struggling taxpayers impacted by COVID-19 more easily settle their tax debts with the IRS with IR-2020-248. This so-called “Taxpayer Relief Initiative” is for taxpayers who owe tax liabilities but are struggling financially because of the pandemic, expanding […]

The U.S. Small Business Administration, in consultation with the Treasury Department, released a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less in News Release 20-81. This action streamlines the PPP forgiveness process to provide financial and administrative relief to America’s smallest businesses, but still requires the submission of supporting documents, such […]

If you made a mistake on your 2019 tax return and need to fix it, your only choice is to prepare a paper Form 1040-X and mail it to the IRS. If you are lucky, the IRS will act on it within a year. However, the IRS announced on May 28, 2020 that later this […]

As Economic Impact Payments (sometimes referred to as “stimulus payments”) continue to be delivered to U.S. taxpayers, many questions have come to light and the IRS (www.irs.gov) has made efforts to answer the most frequent questions on their website as well as through other public forums. Following is a summary of the latest information available. […]

On June 5, President Trump signed the Paycheck Protection Program Flexibility Act (PPPFA) of 2020 (H.R. 7010) which provides more flexibility for participants in the Paycheck Protection Program (PPP) program. The PPP is a provision included in the CARES Act (P.L. 116-136, the Act) that authorizes a certain amount of forgivable loans to small businesses to […]