IRS makes it easier to set up payment agreements; offers other relief to taxpayers struggling with tax debts

IR-2020-248, November 2, 2020 WASHINGTON — The Internal Revenue Service today announced a number of changes designed to help struggling taxpayers impacted by COVID-19 more easily settle their tax debts with the IRS. The IRS assessed its collection activities to see how it could apply relief for taxpayers who owe but are struggling financially because of the pandemic, expanding taxpayer options for making payments and […]

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The IRS says it still hasn’t opened more than 2 million returns this tax season

Published: Oct. 8, 2020 at 1:46 a.m. ET By Andrew Keshner The Internal Revenue Service still has to process an estimated 2.5 million hard copy income tax returns within a pile of unopened mail that stands at 5.3 million pieces. That’s according to IRS Commissioner Charles Rettig, who testified Wednesday on the agency’s efforts to dig out from a mountain of unopened mail that accumulated […]

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COVID-19: IRS Provides Relief from Enforcement Actions

During the COVID-19 pandemic, the last thing you need is the IRS doing bad things, like auditing you or levying your bank account or wages. But don’t worry—the IRS is pausing most of its collection and audit enforcement actions. Installment Agreements If you have an installment agreement with the IRS, then the IRS is suspending your payments due between April 1 and July 15, 2020. […]

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COVID-19: CARES Act Allows $100,000 Tax-Free IRA Grab and Repay

Bradford Tax Institute April 2020   COVID-19: CARES Act Allows $100,000 Tax-Free IRA Grab and Repay More Relief: Retirement Account Required Minimum Distribution Rules Suspended for 2020 The $2 trillion COVID-19 economic recovery bill finally made it through Congress and was signed into law by President Donald Trump on March 27. The legislation is titled the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). […]

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COVID-19: New SBA Loans for Small Businesses – Maybe a Great Deal

Mary Lee Miller EA LLC April 3, 2020 Dear Client: The COVID-19 pandemic has upended all aspects of life around the world, including the worldof business here in the U.S. If your business is struggling, you may be able to get some help from the federal Small BusinessAdministration (SBA), which is authorized to provide loans to small businesses on an as-neededbasis. There are two types […]

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COVID-19: Tax Season Delayed Until July 15 – Wait or file now?

Mary Lee Miller EA LLC04-02-2020 Dear Client: As you know, the COVID-19 pandemic has shut down much activity in the United States.The IRS decided to use its authority in a national emergency to postpone certain tax return filingsand payments. This change affects every one of you, and the rules are tricky—after all, this is taxlaw. We’ll explain who gets relief; what the IRS postponed; and […]

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What Cash Businesses Can Do to Avoid IRS Audits

BY JEAN MURRAY Updated July 11, 2019 Cash businesses (those that take in mostly cash, such as restaurants, flea market vendors, beauty salons, and many others) are more likely to be audited by the IRS and have a particular problem when audited because it is difficult to verify income received in cash. It’s called the Tax Gap, the amount of money spent in the U.S. […]

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Is The IRS Targeting Crypto Investors? Yes. But Here’s How To Legally Trade Tax-Free

Joresa Blount Aug 26, 2019, 05:04am After Coinbase released data on over 14,000 users to the Internal Revenue Service in 2018, cryptocurrency traders have been bracing for what’s to come next regarding IRS enforcement, as reported by The Wall Street Journal. The first and second wave of that enforcement seems to have recently landed in thousands of mailboxes nationwide. IRS Letter 6174 is designed to […]

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You Can Change Your Domicile To Avoid State Taxes — But Is It Really Worth Doing So?

Rob Clarfeld Aug 20, 2019, 12:16pm It is the rare week when I don’t have a discussion with a client about changing their domicile to a state that doesn’t have an income tax. A very rare week. Since a significant percentage of our clients are from New York, New Jersey and Connecticut, this is not a new discussion for me. The New York area has […]

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After a divorce, only one parent can claim child-related tax breaks

Aug 5, 2019 11:08 a.m. ET By BILL BISCHOFF To qualify, over half the child’s support for the year must be provided by one or both parents.  For tax purposes, a child is usually treated as “belonging” to the parent who has custody for the greater part of the year. Divorces cause tax issues, including which parent is allowed to claim valuable child-related tax breaks. […]

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