The IRS will recalculate taxes on unemployment benefits; refunds to start in May To help taxpayers, the Internal Revenue Service announced yesterday that it will take steps to automatically refund money this spring and summer to people who filed their tax return reporting unemployment compensation before the recent changes made by the American Rescue Plan.… Read More

There are various reasons a business may need to file for dissolution beyond just closing its doors and going out of business.  Regardless of the reasons, it is important to take the critical steps necessary to dissolve the business in order to comply with federal and state tax regulations as well as protecting yourself from… Read More

On March 26, the Internal Revenue Service issued Announcement 2021-7 PDF today clarifying that the purchase of personal protective equipment, such as masks, hand sanitizer and sanitizing wipes, for the primary purpose of preventing the spread of coronavirus are deductible medical expenses. The amounts paid for personal protective equipment are also eligible to be paid or reimbursed… Read More

WASHINGTON – The Internal Revenue Service announced on March 29th at individuals have until May 17, 2021 to meet certain deadlines that would normally fall on April 15, such as making IRA contributions and filing certain claims for refund. This follows a previous announcement from the IRS on March 17, that the federal income tax filing due… Read More

Taxpayers should watch mail for paper checks, debit cards WASHINGTON – The Internal Revenue Service announced today that the next batch of Economic Impact Payments will be issued to taxpayers this week, with many of these coming by paper check or prepaid debit card. For taxpayers receiving direct deposit, this batch of payments began processing… Read More

You can file Form W-7, Application for IRS Individual Taxpayer Identification Number (ITIN), with your federal income tax return. You must also include original documentation or certified copies from the issuing agency to prove identity and foreign status. If you qualify for an exception, then file Form W-7 with your proof of identity and foreign… Read More

Treasury, IRS extend filing and payment deadline The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The IRS will be providing formal guidance in the coming days. “This… Read More

Mark no, if only purchased. The IRS has updated the FAQs on Virtual Currency Transactions page, clarifying how a taxpayer who only purchased virtual currency with real currency and had no other virtual currency transactions during the year should answer the question on Page 1 of the Form 1040. According to the new FAQ posted, the taxpayer… Read More

The IRS and Treasury have issued all first and second Economic Impact Payments. If you didn’t get any Economic Impact Payments or got less than the full amounts, you may qualify for the Recovery Rebate Credit and must file a 2020 tax return to claim the credit even if you don’t normally file. Most individuals… Read More

On March 3, 2021, the SBA issued a revised Interim Final Rule (IFR) permitting self-employed with an ITIN to apply for PPP loans. Question # 64 of the revised IFR reads as follows: Q 64. If an owner of an applicant, or a sole proprietor, self-employed individual, or independent contractor has an Individual Taxpayer Identification… Read More