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Chaya Kundra

IRS updates: A trend in judgments by the IRS and DOJ

| Jul 14, 2021 | blog |

How Much Can Taxpayers Rely on IRS?

Acting IRS Chief Counsel William M. Paul said at the NYU conference recently, “IRS is comfortable with the view that if a taxpayer relies in good faith on an FAQ and that reliance is reasonable under all the facts and circumstances, the taxpayer should have a reasonable cause defense and should not be subject to a negligence penalty or other accuracy-related penalty,” Paul added. IRS won’t assert FAQs in support of its positions on audit or in litigation, he said. “The flip side of that is that if an FAQ is incorrect as applied to a particular taxpayer’s facts, then the law will control.”  Chief Counsel addresses concerns regarding IRS-issued FAQs (07/14/2021) Checkpoint Source:Federal Tax Updates

Special 2020 Rule for Unemployment Benefits: 2nd Round of IRS refunds to be issued for 2020 filers reporting unemployment compensation for earners making less than $150,000 in modified adjusted gross income; exclusion up to $20,400 for joint filers and $10,200 for singles.  IR 2021-151.

Use SSN Even if Not Allowed to Work.  IRS’ website says to use your Social Security number (SSN) to file your tax return even if you are not authorized to be employed or you lose your employment authorization.