If you want to register for an IRS Online Account, you’ll no longer be subjected to the use of biometric data, including facial recognition. According to the IRS, taxpayers now have the option of verifying their identity during live, virtual interviews with IRS agents. With an Online Account, taxpayers can, among other things, access tax […]
Read More Tax NewsThe first page of audited financial statements is the auditor’s report. This is an important part of the financials that shouldn’t be overlooked. It contains the audit opinion, which indicates whether the financial statements are fairly presented in all material respects, compliant with Generally Accepted Accounting Principles (GAAP) and free from material misstatement. In general, […]
Read More 4 levels of audit opinionsThe IRS is providing penalty relief for certain pass-through entities required to file Schedules K-2 and K-3 for 2021. Certain domestic partnerships and S corporations won’t be required to file the schedules, which are intended to make it easier for partners and shareholders to find information related to “items of international tax relevance” that they […]
Read More Tax NewsBusiness owners can deduct ordinary and necessary expenses on their tax returns but they must be able to substantiate them. If the IRS disallows them and an owner wants to challenge the tax agency, the taxpayer bears the burden of proving there were errors in the IRS determinations. In one case, a consultant reported gross […]
Read More Tax NewsBusinesses, watch out for audit red flags
Read More 2022 – 02/10 – Businesses, watch out for audit red flagsOn Feb. 18, the U.S. Senate acted to extend government funding through March 11. With that done, members of both the U.S. House and Senate have left Washington until Feb. 28. Upon their return, the Senate Democrats’ agenda includes no immediate tax legislation, according to the office of Senate Majority Leader Charles Schumer (D-NY). The […]
Read More Tax NewsIf an individual has been deemed a “noncompliant” taxpayer and has possible criminal exposure, it’s important to address the issue quickly. One option is to submit Form 14457, Voluntary Disclosure Practice Preclearance Request and Application. Following a review of tax practitioner feedback, the IRS recently updated the form to facilitate submission. It now includes an […]
Read More Tax NewsThe IRS reminded those with income from a farming or fishing business that they should file and pay their entire tax due on or before Tues., March 1, if they didn’t make estimated tax payments. Farmers and fishers who decided to forgo making estimated tax payments have the option to pay the entire tax due […]
Read More Tax NewsAwards and settlements are routinely provided for a variety of reasons. For example, a person could receive compensatory and punitive damage payments for personal injury, discrimination or harassment. Some of this money is taxed by the federal government, and perhaps state governments. Hopefully, you’ll never need to know how payments for personal injuries are taxed. […]
Read More How are court awards and out-of-court settlements taxed?In response to pressure from Congress, 1,200 IRS employees have been dispatched to sort and process millions of outstanding 2020 amended paper tax returns. IRS Commissioner Chuck Rettig says a separate team will tackle 2021 paper returns as they come in. The backlog has been caused, in part, because the IRS suspended approximately 35 million […]
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