The IRS continues to experience delays mailing backlogged notices due to the volume and restart of issuing notices during the pandemic. This delay impacts some, but not all, IRS notices dated from November 9 to November 23, 2020. The impacted notices are those requesting payment for tax owed… Read More
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Important Shift in Coinbase Crypto Reporting
Coinbase, one of the largest and most popular crypto exchanges, recently changed some of its third-party tax reporting rules for its users. The company used to issue annual 1099-K’s. These tax forms were issued to its crypto users who processed at least $20,000 worth of payments in a… Read More
Importance of Innocent Spouse “Timing”
A 2020 District Court case in Texas tells us that the “timing” of filing an Innocent Spouse Request for relief is supremely important. In the Landers case, the taxpayer filed her Innocent Spouse Claim after an IRS bank levy had been sent to her banking institution. In effect,… Read More
Chances of Audit Increasing
Following historically low examination rates in 2020, the IRS plans to ramp up tax audits of small businesses by about 50% next year (2021). The increase in audits will apply to both partnerships and pass-throughs, said the IRS. The audit net will be wide – from local mom-and-pop… Read More
Deductibility of Paycheck Protection Program (PPP) Expenses
Concerning the non-deductibility of expenses related to the Paycheck Protection Program (PPP), the IRS released updated guidance this month (November 2020). Under the new IRS guidance, a calendar year borrower who received a PPP loan in 2020, which loan has not been forgiven by the end of 2020,… Read More
E-Filing and the Late-File Penalty
For many years, the Boyle rule established that the failure of a third-party accountant to file a tax return by its due date does not establish a taxpayer’s “reasonable cause” for the forgiveness of late-file penalties. But is the Boyle rule consistent with the realities of e-filing? For… Read More