On March 25, 2020 Congress unanimously passed an economic stimulus package that allows for taxpayers to receive stimulus checks of up to $1,200 per adult. On April 11, 2020, the IRS began its first wave of payments. Taxpayers who have filed tax returns for 2018 or 2019 and who have authorized direct deposit started receiving … Read more
The Families First Coronavirus Response Act (H.R. 6201) was passed by Senate and signed into law by President Trump on March 18th. The new law guarantees paid sick leave to employees of small businesses. 1 Who is covered?2 What conditions qualify for paid sick leave?3 Paid child care leave Who is covered? A company that … Read more
This page will provide updates on tax relief provided by the IRS in response to the Coronavirus pandemic. 1 High-deductible Health Plans can Cover Coronavirus Costs2 Tax Payment Extensions for Taxpayers & Small Businesses3 Extension of April 15 Tax Deadline to July 15 High-deductible Health Plans can Cover Coronavirus Costs On March 11, 2020, the … Read more
The Internal Revenue Service announced today an agreement with Free File, Inc. (FFI) designed to bring more clarity for taxpayers choosing to use free online software during the 2020 filing season. The agreement reached will help make the Free File program more taxpayer-friendly while strengthening consumer protections in several key areas. 1 What is the … Read more
Farmers who have sustained losses over many years should be aware of the IRS’ hobby loss rules which limit farm loss tax deductions. Hobby losses are one of the most frequently litigated issues in tax. In order to deduct a loss from a business activity, the taxpayer must be able to demonstrate that the activity … Read more
Cloverdell ESAs and 529 Plans are great ways to save for college. The investments can grow tax-free in stocks, mutual funds, bonds, and variety of investment vehicles. However, these savings plans may impact financial aid and needs-based scholarship eligibility. Therefore, most financial advisors recommend that parents max out their 401k and IRA contributions before contributing … Read more
The whistleblower program is one of the weapons used by the IRS to detect underpayments of tax and violations of the internal revenue laws. The program is based on the principle “if you know something, say something.” The statute provides that if the IRS institutes an administrative or judicial action against a taxpayer and collects … Read more
A notice of deficiency is a proposed increase of tax and your notice to dispute the deficiency in tax court. Before it can assess liability for unpaid taxes, the IRS must send a deficiency notice to the taxpayer’s last known address by certified mail or registered mail. The notice also gives taxpayer the right to … Read more
Many taxpayers will claim a car and truck deduction on their Schedule C or business returns. Often, taxpayers are unaware of what documents they should retain to substantiate their deduction if selected for audit. 1 Deductions for car and truck expenses — overview2 Actual mileage2.1 Required documents to substantiate actual mileage3 Standard mileage4 Mileage log4.1 … Read more
The Treasury Inspector General for Tax Administration (TIGTA) in its recent report found that the IRS may have improperly issued levies on hundreds of taxpayers, 1 What TIGTA investigated2 IRS authority to levy for unpaid tax debt3 Taxpayer rights prior to IRS levy action4 Levies improperly issued by automated levy programs (ALP)5 Levies improperly issued … Read more