Extended Due Date

For taxpayers who’ve filed for an extension, highlight this date on your calendar: Monday, Oct. 17. That’s the new deadline to file your tax return with the IRS. Be aware that an extension of time to file will automatically process if taxpayers paid all or part of their taxes electronically by this year’s original due […]

What’s the chance I will be audited?

According to new research, low-income taxpayers were audited by the IRS at a higher rate in fiscal 2021 than the previous year. Those who earned less than $25,000 in gross receipts were “audited at a rate five times higher” than other taxpayers, according to the Transactional Records Access Clearinghouse (TRAC) at Syracuse University, which received […]

Collection Due Process

Taxpayers who can’t pay their past-due tax bills may request a Collection Due Process (CDP) hearing. One married couple filed their 2016 tax return in 2019 but didn’t pay the full tax due of $41,678. After the IRS issued a levy notice, the couple requested a CDP hearing. They asked that their account be considered […]

Are you an employee?

Employee or independent contractor? When a court must decide how workers are to be classified, it looks at various factors. In one case, the U.S. Tax Court found that a provider of private duty nurses failed to classify 99 nurses as employees during 2016–2018. The factors considered included: the degree of control the company exercised […]

Can you hear me now?

The Taxpayer Advocacy Panel (TAP) is a group of volunteers that makes recommendations to the IRS about issues that affect ordinary taxpayers. As TAP’s website proudly states, “We’re the voice between the IRS and you.” The IRS isn’t obligated to act on every suggestion, nor does it. However, of the 126 items submitted to the […]

Update for energy production credits

The IRS has just published new inflation adjustment factors and reference prices for determining Code Sec. 45 energy production credits. This credit generally is available to qualified renewal electricity producers. For 2022, the inflation adjustment factor for qualified energy resources is 1.8012 and the reference price for facilities producing electricity from wind is 4.09 cents […]

Qualified Opportunity Funds review by IRS

The Qualified Opportunity Zone (QOZ) program allows investors to make long-term investments in distressed communities. More specifically, it allows investors who recognize capital gains to reinvest those gains in Qualified Opportunity Funds (QOFs) that, in turn, invest in one of nearly 9,000 designated QOZs. If you’ve made QOF investments, you may soon receive a letter […]

Foreclosure cases

Sometimes to satisfy delinquent tax debt, the IRS pursues foreclosure of a primary residence. Recently, the Treasury Inspector General for Tax Administration (TIGTA) looked at whether the IRS needs to improve its handling of these actions. In 96 lien foreclosure cases over two years ending Sept. 30, 2020, revenue officers generally followed procedures. But in […]

Identity Theft

What happens if a thief steals your identity and files a fraudulent tax return? Although not all fraud can be easily detected, the IRS scans tax returns for possible fraud as they’re received. Returns that are flagged as suspicious will be pulled for extra review. If this happens with your return, you’ll receive an IRS […]

Happy Easter

May God shower you with blessings, love, and peace this Easter.From all of us to you; have a wonderful Easter celebration.