No doubt, the pandemic had an unfortunate economic impact on individuals and businesses alike, causing them to struggle to pay taxes owed to the The People First Initiative did provide relief for about 3 ½ months as the IRS paused enforcement pursuits, such as filing...
IRS Updates
December 2021 Tax Updates
Tax Professionals & Data Safeguards. It is part of Circular 230 and in a Tax Tip, the IRS restates that data security measures should be reviewed before year end and provides a data security check list with basic steps they to be taken for their and their client’s...
IRS tax collection considering the pandemic and elections
According to the U.S. Government Accountability Office, the IRS shut down most office activities between March and July 2020 to protect its employees from COVID19. It also halted all in-person enforcement activities, including the mail service. Over several months,...
October IRS Updates
Historic Gross Receipts Permitted. IRC 165, PLR 202140002: IRS allows for the inclusion/consideration of historic gross receipts of stated foreign sub into account for purposes of computing Code Sec. 165(g)(3)(B)'s “more than 90% gross receipts test” by holding co....
In Home COVID Testing, PPE
The cost of home testing for COVID-19 and personal protective equipment considered medical expenses within meaning of Code Sec. 213(d) are eligible to be paid or reimbursed under various FSAs, HRAs, and HSAs. This means these costs can be paid or reimbursed by the...
IRS updates: A trend in judgments by the IRS and DOJ
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,...
IRS to resume collection process
The IRS is resuming certain collection and enforcement processes that were suspended since April 2020 due to the coronavirus pandemic. On June 15, 2021, the IRS began following up with taxpayers who have failed to respond to prior balance due notices. Balance due...
Understanding the IRS voluntary settlement program
A significant portion of a company’s tax entanglements often involves employee misclassification. Although employers are sometimes not up to date on changes to employment law, by avoiding employee withholding taxes for some or all of their workers, many seek to keep...
April IRS Updates
IRS Defines Restaurant to Qualify for 2021-2011 100% Food & Beverage Deduction: See, Notice 2021-25, 2021-17 IRB; IR 2021-79, 4/8/2021 IRS Updates FAQ on Second Economic Impact Payments for example if it was lost, stolen, or you didn't receive...
Latest updates from the IRS
Employers to Defer WH Tax DEPOSITS(Notice 2020-65, 2020-38 IRB 1). Employees who earned less than $4,000 in wages every two weeks between 9/1/20 and 12/31/20 are able to use this deferral. With this deferral, the employer is required to pay all applicable taxes...