Form 14039-B, an identity theft affidavit for businesses and other entities, will make it easier for businesses, estates, trusts and tax-exempt organizations to report identity theft to the IRS. The form is now publicly available under the “Business” tab on the Identity Theft Central page on IRS.gov.
Recent ASCPA News
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ADOR Issues Guidance on New PTE Tax Election and Consequences of Decoupling from GILTI and IRC §118(b)(2)
At the urging of the Alabama Society of CPAs and other groups, the Alabama Department of Revenue (ADOR) recently issued preliminary guidance on (a) how the new pass-through entity (PTE) tax election interacts with the corporate estimated tax rules, and (b) what happens if a taxpayer paid Alabama income tax on its federal “GILTI” income or on the deemed income resulting from a state or local government or IDA donating land, issuing a site prep grant, etc. to a new or expanding industry. The latter is now taxable under IRC section 118(b)(2) as a result of the Tax Cuts and Jobs Act of 2017 (TCJA). -
IRS will recalculate taxes on 2020 unemployment benefits and start issuing refunds in May
Normally, any unemployment compensation someone receives is taxable. However, a recent law change allows some recipients to not pay tax on some 2020 unemployment compensation. -
University students and staff should be aware of IRS impersonation email scam
People should be aware of an ongoing IRS-impersonation scam that appears to target educational institutions, including students and staff who have ".edu" email addresses. The suspect emails display the IRS logo and use various subject lines, such as "Tax Refund Payment" or "Recalculation of your tax refund payment." It asks people to click a link and submit a form to claim their refund. -
Treasury, IRS provide guidance on tax relief for deductions for food or beverages from restaurants
Businesses can temporarily deduct 100% beginning January 1, 2021 -
IRS reminds taxpayers to make April 15 estimated tax payment
The Internal Revenue Service today reminded self-employed individuals, retirees, investors, businesses, corporations, and others who pay their taxes quarterly that the payment for the first quarter of 2021 is due Thursday, April 15, 2021. -
IRS extends additional tax deadlines to May 17
Following the extension of the filing and payment deadline for individuals to May 17, 2021, the IRS announced other tax deadline extensions to the same date. -
IRS, Treasury disburse 25 million more Economic Impact Payments under the American Rescue Plan
Social Security and other beneficiaries bring total to more than 156 million payments; VA beneficiaries’ payments to be disbursed on April 14 -
Here’s how the third Economic Impact Payment is different from earlier payments
The third Economic Impact Payment is different from the first and second payments in several ways. -
Additional Preliminary Guidance from ALDOR on Act 2021-1
On February 12, 2021, Governor Kay Ivey signed into law Act 2021-1. The following preliminary guidance is being providing in regard to Sections 7 and 8 of the act. -
How to claim the employee retention credit for the first half of 2021
The IRS explained the changes to the employee retention credit (ERC) for the first two calendar quarters of 2021 in Notice 2021-23, which amplifies Notice 2021-20. The credit was created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L 116-136, and amended by the Consolidated Appropriations Act, 2021, P.L 116-260. -
IRS issuing third Economic Impact Payments to non-filers and most federal beneficiaries
The IRS continues to issue the third Economic Impact Payment to eligible individuals. This includes Social Security recipients and other federal beneficiaries who do not normally file a tax return. Most of these payments will be sent electronically and received on April 7. -
IRS letters explain why some 2020 Recovery Rebate Credits are different than expected
As people across the country file their 2020 tax returns, some are claiming the 2020 Recovery Rebate Credit (RRC). The IRS is mailing letters to some taxpayers who claimed the 2020 credit and may be getting a different amount than they expected. -
IRS has refunds totaling $1.3 billion for people who have not filed a 2017 federal income tax return
Unclaimed income tax refunds worth more than $1.3 billion await an estimated 1.3 million taxpayers who did not file a 2017 Form 1040 federal income tax return, according to the Internal Revenue Service. -
ASCPA Thanks Representative Barry Moore and Representative Jerry Carl for Fighting for Tax Filing and Payment Extensions for Everyone
On March 31, 60 Congressional Representatives signed on to a letter, led by Representative Lloyd Smucker, requesting IRS Commissioner Rettig extend the federal tax filing deadline for first quarter estimated tax payments to May 17, 2021. -
IRS provides guidance for employers claiming the Employee Retention Credit for first two quarters of 2021
The Internal Revenue Service today issued guidance for employers claiming the Employee Retention Credit under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) modified by the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Relief Act). -
Join the Taxpayer Advocacy Panel and help improve the IRS; apply by May 14
The Internal Revenue Service today announced it is seeking civic-minded volunteers to serve on the Taxpayer Advocacy Panel (TAP). -
Members of Congress request estimated tax deadline postponement
In a letter to IRS Commissioner Charles Rettig on Wednesday, a diverse, bipartisan group of 60 members of Congress urged the IRS to extend the deadline for first quarter 2021 federal estimated tax payments to May 17. The estimated tax deadline has been an issue since the IRS postponed the tax filing and payment deadline for individuals to May 17 but did not move the April 15 estimated tax deadline (see Notice 2021-21). -
IRS to automatically issue refunds on tax-free unemployment benefits
In good news for many taxpayers, the IRS said that, beginning in May and continuing through the summer, it will automatically issue refunds to eligible people who already filed a tax return reporting unemployment compensation before the recent changes made by the American Rescue Plan Act, P.L. 117-2 (IR-2021-71). Under this process, eligible taxpayers will not have to file amended returns to receive a refund. -
IRS, Treasury disburse more Economic Impact Payments under the American Rescue Plan; total tops 130 million with more to come
Today, the Internal Revenue Service, the U.S. Department of the Treasury and the Bureau of the Fiscal Service announced they are disbursing several million more payments in the third batch of Economic Impact Payments from the American Rescue Plan. This brings the total disbursed so far to more than 130 million payments worth approximately $335 billion. -
IRS warns university students and staff of impersonation email scam
The Internal Revenue Service today warned of an ongoing IRS-impersonation scam that appears to primarily target educational institutions, including students and staff who have ".edu" email addresses. -
Here’s how taxpayers can track the status of their refund
Where's My Refund provides a personalized date after the return is processed and a refund is approved. While most tax refunds are issued within 21 days, some may take longer if the return requires additional review. -
IRS extends additional tax deadlines for individuals to May 17
The Internal Revenue Service today announced that 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. -
People should check Get My Payment for status of third EIP and watch their mail
The IRS continues to issue the third round of Economic Impact Payments to eligible individuals, with payments being issued as a direct deposit or by mail as a paper check or prepaid EIP debit card. No action is needed by most eligible people to receive a third Economic Impact Payment automatically. -
IRS provides details on April 15 postponement
On Monday, the IRS issued guidance with details on its postponement of the April 15 tax deadline for individuals (Notice 2021-21). The IRS had announced in a news release on March 17 that it was delaying the April 15 deadline for individuals until May 17, 2021. Monday’s notice clarifies and adds details about the postponement. Like the news release before it, the notice does not extend the April 15 due date for estimated tax payments. -
Face masks and other personal protective equipment to prevent the spread of COVID-19 are tax deductible
The Internal Revenue Service issued Announcement 2021-7 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. -
J5 countries host ‘Challenge’ aimed at FINtech companies
The Joint Chiefs of Global Tax Enforcement (J5) brought together investigators, cryptocurrency experts and data scientists in a coordinated push to track down individuals and organizations perpetrating tax crimes around the world this week. -
People who adopt may benefit from this special tax credit
The adoption process can be expensive. Fortunately, the adoption tax credit can help offset some those expenses Taxpayers who adopted or started the adoption process in 2020 should review the rules for this credit. -
Alabama senator looking for fix on tax-filing interest issue
The fine print on the Alabama Department of Revenue’s guidance on the topic said that while it can waive late penalties for payments made by May 17, it is “not authorized to waive interest, and any interest accruing from April 15, 2021, through the actual payment date will be due.” -
IRS, Treasury disburse another 37 million Economic Impact Payments from the American Rescue Plan
Today, the Internal Revenue Service, the U.S. Department of the Treasury and the Bureau of the Fiscal Service announced they are disbursing approximately 37 million payments in the second batch of Economic Impact Payments from the American Rescue Plan. This brings the total disbursed payments from the American Rescue Plan to approximately 127 million payments worth approximately $325 billion. -
IRS is issuing third round of Economic Impact Payments
The IRS started issuing the third round of Economic Impact Payments. No action is needed by most taxpayers. The IRS will issue payments automatically by direct deposit and through the mail as a check or debit card. -
Tax filing postponement doesn't go far enough, AICPA says
The AICPA welcomed the IRS’s postponement of the April 15 income tax filing and payment deadline to May 17 but said the measure falls far short of needed taxpayer relief. -
The right to confidentiality is a fundamental right of all taxpayers
Information a taxpayer gives the IRS won't be shared with outside parties, unless allowed by the taxpayer or by law. This is the right to confidentiality. It's one of ten rights known collectively as the Taxpayer Bill of Rights. -
More Economic Impact Payments set for disbursement in coming days; taxpayers should watch mail for paper checks, debit cards
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. -
Alabama Department of Revenue Issues Guidance on Income Tax Filing Deadlines
On March 17, the Treasury Department and the IRS issued IR-2021-59, which provides for an automatic extension of the filing and payment date for individual 2020 income tax returns from April 15, 2021, to May 17, 2021. The IRS release specifically stated that the relief does not apply to estimated tax payments that are due on and still must be paid by April 15, 2021. -
IRS Office of Chief Counsel unveils National Virtual Settlement Days effort this year to reach more taxpayers in more parts of the nation
The Internal Revenue Service Office of Chief Counsel has embarked on its most far-reaching Settlement Days program ever, declaring the month of March 2021 as "National Settlement Month." -
Tax Time Guide: Use the Where’s My Refund? tool or IRS2Go app to check tax refund status
The Internal Revenue Service today reminds taxpayers that the most convenient way to check on a tax refund is by using the Where's My Refund? tool at IRS.gov or through the IRS2Go Mobile App. -
IRS, Treasury disbursed 90 million Economic Impact Payments from the American Rescue Plan
Today, the Internal Revenue Service, the U.S. Department of the Treasury and the Bureau of the Fiscal Service announced they disbursed approximately 90 million Economic Impact Payments from the American Rescue Plan. As announced last week, Economic Impact Payments are rolling out in tranches to millions of Americans in the coming weeks. -
IRS to Delay U.S. Tax Deadline to May 17 After Disruptive Year
The Internal Revenue Service is planning to delay the April 15 tax filing deadline to May 17, giving taxpayers an additional month to file returns and pay any outstanding levies, according to two senior House Democrats. -
State Tax Cuts Put on Hold By Stimulus Clawback Rules
States are demanding the Biden Administration clarify a last-minute provision in the latest virus relief package that bars them from using federal benefits to cut taxes -
AICPA Says Millions of Taxpayers Will Not Benefit from IRS Extension of Tax Deadline
Following weeks of calls from the American Institute of CPAs (AICPA), Members of Congress and other groups to extend the April 15th filing and payment deadline, the Internal Revenue Service (IRS) announced today that it would extend the filing and payment deadline for some – but not all – taxpayers for the 2021 tax season from April 15th to May 17th. -
Tax Day for individuals extended to May 17: 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. -
IRS expands help to taxpayers in multiple languages with new forms, communication preferences
The Internal Revenue Service today said that it continues its efforts to expand ways to communicate to taxpayers who prefer to get information in other languages. -
Tax Time Guide: IRS reminds taxpayers of recent changes to retirement plans
The Internal Revenue Service today reminded taxpayers about the rules for required minimum distributions (RMDs) from retirement accounts. -
AICPA asks for guidance on S corp. and partnership PPP loan forgiveness
Taxpayers urgently need guidance on Paycheck Protection Program (PPP) loan forgiveness issues, the AICPA has told the IRS, and the AICPA has made recommendations proposing solutions to those issues. -
SBA Extends Deferment Period for all COVID-19 EIDL and Other Disaster Loans until 2022
The U.S. Small Business Administration announced extended deferment periods for all disaster loans, including the COVID-19 Economic Injury Disaster Loan (EIDL) program, until 2022. -
Low Income Taxpayer Clinic 2021 supplemental application period now open
The Internal Revenue Service today announced it will accept applications for an 18-month Low Income Taxpayer Clinic (LITC) matching grant from all qualified organizations. -
SBA defers EIDL payments until 2022
Small businesses that received a COVID-19 Economic Injury Disaster Loan (EIDL) won’t have to start making payments on the loan until 2022, the U.S. Small Business Administration (SBA) said. -
IRS begins delivering third round of Economic Impact Payments to Americans
The Internal Revenue Service announced today that the third round of Economic Impact Payments will begin reaching Americans over the next week. -
Here’s how people can request a copy of their previous tax return
Taxpayers who didn't save a copy of their prior year's tax return, but now need it, have a few options to get the information. Individuals should generally keep copies of their tax returns and any documents for at least three years after they file. -
Tax Time Guide: Get credit for IRA contributions made by April 15 on 2020 tax returns
The Internal Revenue Service notes that taxpayers of all ages may be able to claim a deduction on their 2020 tax return for contributions to their Individual Retirement Arrangement (IRA) made through April 15, 2021. There is no longer a maximum age for making IRA contributions. -
What employers need to know about repayment of deferred payroll taxes
To give people a needed temporary financial boost, the Coronavirus, Aid, Relief and Economic Security Act allowed employers to defer payment of the employer's share of Social Security tax. IRS Notice 2020-65 PDF allowed employers to defer withholding and payment of the employee's Social Security taxes on certain wages paid in calendar year 2020. Employers must pay back these deferred taxes by their applicable dates. -
IRS provides resources and services for visually impaired taxpayers
The IRS Alternative Media Center offers resources and accessibility services for taxpayers. Tax-related content is available in several formats for use with assistive technology. This includes screen reading software, refreshable Braille displays and screen magnifying software. -
Tax Time Guide: Make protecting tax and financial information a habit
The Internal Revenue Service today urged people to continue practicing proper cybersecurity habits by securing computers, phones and other devices. Scams and schemes using the IRS as a lure can take on many variations, so practicing personal information security is vital. -
Tips to help taxpayers spot and avoid tax scams
Tax season is also busy season for savvy criminals. Scammers impersonating the IRS either over-the-phone, by email or in-person can steal money from people. All taxpayers should stay vigilant against these schemes. -
Senate passes amended $1.9 trillion COVID-19 stimulus bill
A $1.9 trillion U.S. coronavirus relief package took a step forward Saturday when the Senate voted 50–49 to approve a bill that will be sent back to the House of Representatives because the Senate changed the legislation originally approved by the House. -
IRS Extends 2019 and 2020 Deadlines for Opportunity Fund Investment
On January 19th, IRS issued Notice 2021-10, which contains critical guidance on timing deadlines for Opportunity Fund investment. The biggest takeaway: taxpayers with capital gains dating as far back as January of 2019 may still be able to invest those gains into Opportunity Funds and claim tax benefits – even if they have already paid taxes on those capital gains – as long as they invest before March 31, 2021. -
Tips to help take the stress out of tax season
Every filing season comes with its own set of challenges and 2021 is no different. The IRS wants taxpayers get the information they need as quickly as possible. Taxpayers can keep in mind these tips when they get ready to file. Following them will help get this year's taxes done accurately and refunds issued timely. -
AICPA requests tax deadline postponements until June 15
The AICPA on Thursday sent a letter to IRS Commissioner Charles Rettig and Acting Assistant Secretary Mark Mazur urgently asking for the deadlines for filing all 2020 federal income tax and information returns and for making payments to be extended from April 15 to June 15, 2021, in response to a number of issues that make it impossible for many taxpayers to meet the April 15 deadline. The letter follows up on the AICPA’s earlier request for tax deadline certainty. -
AICPA urges Congress to extend PPP deadline
There have been numerous problems in processing PPP applications. The AICPA has called for an extension of the March 31 deadline to help small businesses and to give the SBA time to fix the issues. -
AICPA seeks certainty on filing deadline and relief for 2020 tax year
In a recent letter to Treasury and the IRS, the AICPA called for greater certainty for taxpayers and tax practitioners and for underpayment and late-payment penalty relief, both of which will provide greater assistance to those affected by the COVID-19 pandemic. -
Certainty and Relief Needed for the 2020 Tax Year
The AICPA believes certainty and further relief is needed this filing season. As we approach the April 15 filing and payment deadline for the 2020 tax year, many taxpayers and tax professionals continue to struggle to prepare and file tax returns. In a letter sent to Treasury and the IRS on Feb 23, the AICPA urged Treasury and the IRS to consider four things. -
ALDOR Announces Relief for Taxpayers Affected by Winter Storms
The Alabama Department of Revenue (ALDOR) is offering tax relief to Alabama taxpayers who reside or have a business in federally declared disaster areas where damage was caused by recent winter storms. The tax relief measures mirror IRS measures in the same declared disaster areas. -
People should be on the lookout for identity theft involving unemployment benefits
The IRS urges taxpayers whose identities may have been used by thieves to steal unemployment benefits to file a tax return claiming only the income they actually received. -
All taxpayers have the right to pay no more than the correct amount of tax
When taxpayers complete their tax returns, they may discover they will owe taxes. By law, they have the right to pay no more than the correct amount of tax. -
New PPP changes attempt to ease smallest businesses' access
The administration of President Joe Biden announced Monday that it would institute a two-week period starting Wednesday during which only businesses with fewer than 20 employees will be able to apply for Paycheck Protection Program (PPP) loans. -
SBA Prioritizes Smallest of Small Businesses in the Paycheck Protection Program
Building on a month of strong results, the Biden-Harris Administration and the U.S. Small Business Administration are taking steps with the Paycheck Protection Program to further promote equitable relief for America’s mom-and-pop businesses. -
Victims of Texas winter storms get deadline extensions and other tax relief
Victims of this month's winter storms in Texas will have until June 15, 2021, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today. -
PPP processing delays continue
Measures implemented by the U.S. Small Business Administration (SBA) to screen for potential fraud in Paycheck Protection Program (PPP) applications continue to cause stress and delays in the system, AICPA executives said during an online Town Hall. -
IRS provides cafeteria plan relief for the pandemic
In response to the COVID-19 pandemic, Congress enacted temporary special rules for health flexible spending arrangements (FSAs) and dependent care assistance programs under Sec. 125 cafeteria plans. The new rules were put in place as part of the Consolidated Appropriations Act, 2021 (CCA), P.L. 116-260, enacted in December 2020. The IRS has now provided these plans with more discretion in 2021 and 2022 to make adjustments to help employees meet the unanticipated consequences of the public health emergency (Notice 2021-15). The IRS anticipates that, because of the pandemic, employees are more likely to have unused health FSA amounts or dependent care assistance program amounts at the end of 2020 and 2021. -
IRS reminds farmers and fishers of March 1 tax deadline
The Internal Revenue Service is reminding those with income from a farming or fishing business that they can avoid making any estimated tax payments by filing and paying their entire tax due on or before March 1. -
Taxpayers must report gig economy income on their tax return
In 2020, many people joined the gig economy to help make ends meet during the pandemic. Whether it's a side business or a primary source of income, all taxpayers need to understand how their gig work affects their taxes. The bottom line is taxpayers must report gig economy income on their tax return. -
New law provides additional flexibility for health FSAs and dependent care assistance programs
The Internal Revenue Service today provided greater flexibility, due to the pandemic, to employee benefit plans offering health flexible spending arrangements (FSAs) or dependent care assistance programs. Under the COVID-related Taxpayer Certainty and Disaster Tax Relief Act of 2020, these plans now have additional discretion in 2021 and 2022 to adjust their programs to help employees better meet the unanticipated consequences of the public health emergency. -
Taxpayers should beware of ghost preparers
As people begin to file their 2020 tax returns, taxpayers are reminded to avoid unethical ghost tax return preparers. -
AICPA Comments on the Underpayment and Late Payment Penalty Relief for 2020 Tax Year
The AICPA recommends providing taxpayers relief from underpayment penalties and relief from late payment penalties for the 2020 taxable year. See full letter attached. -
Capitalizing on Renewable Energy Investments Under the Biden Administration
It is still speculative as to what President Biden will put forward for promoting increased investment in renewable energy. Latham & Watkins attorneys explain how investment funds with a firm grasp of key structural considerations for investment choices in the renewables space will be well positioned to capitalize on any new opportunities. -
As required by law, all first and second Economic Impact Payments issued; eligible people can claim Recovery Rebate Credit
The IRS announced today that, as required by law, all legally permitted first and second round of Economic Impact Payments have been issued and the IRS now turns its full attention to the 2021 filing season. -
Free File can make taxes easier for seniors and retirees
In times like these, every penny counts. This is especially true for taxpayers on a fixed income. Many of these are seniors and retirees who can file their taxes for free. Free File offers online tax preparation, direct deposit of refunds and electronic filing. -
Alabama Enacts Landmark TCJA Reform/CARES Act Exemptions
On February 12, Gov. Kay Ivey signed into law Act 2021-1, introduced only two weeks before as House Bill 170 (and its counterpart SB 98), and designated three separate acts: (1) the Alabama Taxpayer Stimulus Freedom Act of 2021, (2) the Alabama Business Tax Competitiveness Act, and (3) the Alabama Electing Pass-Through Entity Tax Act. Act 2021-1 received unanimous votes in both chambers (94-0 in the House; 27-0 in the Senate). -
Governor Ivey Signs Three Priority Bills into Law; Including HB170 Preventing Taxation on COVID-19 Relief
Governor Ivey signs three priority bills into law; including HB170 which prevents taxation on COVID-19 relief. -
Fast-paced productivity again in Week Two
The three bills that Governor Kay Ivey signed into law last Friday were identified as the key legislative priorities for the session and the swift approval of each reflects the highly productive posture in which the Alabama Legislature has operated the past two weeks. -
What taxpayers need to know about claiming the credit for other dependents
Taxpayers with dependents who don't qualify for the child tax credit may be able to claim the credit for other dependents. -
Avoid pandemic paper delays: Use e-file with direct deposit for faster refunds as IRS prepares to open 2020 filing season
With filing season opening on February 12, the Internal Revenue Service urged taxpayers to take some simple steps to help ensure they file accurate tax returns and speed their tax refunds to avoid a variety of pandemic-related issues. -
Get ready for tax season using IRS Online Account
The Internal Revenue Service today reminded taxpayers they can securely access their IRS account information through their individual online account. -
Final vote possible today on bill changing corporate tax code, untaxing COVID-19 relief money
At least one of the Legislature’s priority bills could get final approval today. House Bill 170 and Senate version SB98 clarify that Alabamians don’t have to pay income taxes on federal COVID-19 relief funds and make multiple changes to the corporate tax code. The Senate is expected to vote on the fast-tracked bills this afternoon. It’ll then go to the governor. -
Common and costly errors taxpayers should avoid when preparing a tax return
Electronically filing a tax return reduces errors because the tax software does the math, flags common errors and prompts taxpayers for missing information. It can also help taxpayers claim valuable credits and deductions. -
Wolters Kluwer Examines President Joe Biden’s Tax Proposals Ahead of Presidents’ Day
When elected, many Presidents have been quite successful in getting a substantial portion of their tax proposals enacted in the first two years in office. President Joe Biden has divided his tax proposals into two efforts. The priority tax package he is looking to enact quickly focuses on immediate COVID-related relief for individuals and businesses. The longer-term tax package on which he ran and hopes to enact at some point during 2021 is focused on tax increases on wealthier individuals and corporations, tax breaks for lower income taxpayers, and tax provisions to promote domestic job growth and conversion to clean energy. -
Common and costly errors taxpayers should avoid when preparing a tax return
Electronically filing a tax return reduces errors because the tax software does the math, flags common errors and prompts taxpayers for missing information. It can also help taxpayers claim valuable credits and deductions. -
IRS, Summit partners issue urgent EFIN scam alert to tax professionals
The Internal Revenue Service, state tax agencies and tax industry today warned tax professionals of a new scam email that impersonates the IRS and attempts to steal Electronic Filing Identification Numbers (EFINs). -
SBA and lenders take more steps to improve Paycheck Protection Program
Loan data shows 1.3 million loans and significant increase to underserved entrepreneurs -
SBA announces PPP process changes
The U.S. Small Business Administration (SBA) announced changes Wednesday designed to reduce delays in the Paycheck Protection Program (PPP) approval process. -
IRS Issues Urgent EFIN Scam Alert to Tax Pros
The Security Summit partners said the latest scheme, arriving just before the start of the nation’s tax season, should serve as another reminder that tax professionals remain prime targets for identity thieves. -
The first step of tax preparation is gathering records
As taxpayers get ready to file their 2020 tax return, they should start by gathering their records. Taxpayers should gather all year-end income documents to help ensure they file a complete and accurate 2020 tax return and avoid refund delays. -
Double-check for missing or incorrect Forms W-2, 1099 before filing taxes
With some areas seeing mail delays, the Internal Revenue Service reminds taxpayers to double-check to make sure they have all of their tax documents, including Forms W-2 and 1099, before filing a tax return. -
IRS names Sieger to permanent position of CIO
The Internal Revenue Service announced today that Nancy Sieger has been selected as the Chief Information Officer. She has served as acting CIO since June 2019. -
Double-check for missing or incorrect Forms W-2, 1099 before filing taxes
With some areas seeing mail delays, the Internal Revenue Service reminds taxpayers to double-check to make sure they have all of their tax documents, including Forms W-2 and 1099, before filing a tax return. -
IRS Free File can save families money
Families are often looking for ways to save money. One way they can do this is by using IRS Free File to do their taxes. Free File offers online tax preparation, direct deposit of refunds and electronic filing, at no cost. -
New IRS form available for self-employed individuals to claim COVID-19 sick and family leave tax credits under FFCRA
The Internal Revenue Service announced today that a new form is available for eligible self-employed individuals to claim sick and family leave tax credits under the Families First Coronavirus Response Act (FFCRA). -
Tips to help people choose a reputable tax preparer
Whether taxpayers regularly use a tax professional to help them file a tax return or they have decided to work with one for the first time, it is important to choose a tax return preparer wisely. Taxpayers are responsible for all the information on their income tax return. This is true regardless of who prepares the return. -
Here are reasons taxpayers should file a 2020 federal tax return – and why e-file is best
Most people with gross income of $12,400 or more must file a federal tax return. Some people with a lower income are not required to file. However, these individuals should still consider filing for a refund of federal income tax withheld. They may also be eligible for certain tax credits, like the earned income tax credit, the recovery rebate credit and others. -
Beware of "ghost" preparers who don’t sign tax returns
The Internal Revenue Service reminds taxpayers to avoid "ghost" tax return preparers whose refusal to sign returns can cause a frightening array of problems. It is important to file a valid, accurate tax return because the taxpayer is ultimately responsible for it. -
IRS names Maloy as director of Taxpayer First Act Office
The Internal Revenue Service today named Heather C. Maloy to the position of director, Taxpayer First Act Office. She will report directly to the IRS Commissioner in her new role. -
Productive Week Despite Unusual Circumstances
The Alabama Legislature got down to business immediately in the 2021 session’s first week; both chambers moved major legislation, seemingly unhindered by social distancing and other virus-related precautions. Gov. Kay Ivey matched their pace, delivering her annual State of the State address virtually on Tuesday and submitting her budget recommendations the next day. -
2021 Tax Filing Tips from ALDOR
Are you ready to file your income tax return? Tax Season 2021 begins on Friday, Feb. 12, and the filing deadline is April 15. The Alabama Department of Revenue (ALDOR) has a few tips and suggestions to help you file your return safely and get your refund as quickly as possible. -
AICPA sends letter to SBA pushing for fixes to PPP application process to assist small businesses
The American Institute of CPAs (AICPA) sent a letter to the Small Business Administration (SBA) raising concerns about the challenges small businesses are facing with the current Paycheck Protection Program (PPP) loan application system. -
Educators can now deduct out-of-pocket expenses for COVID-19 protective items
Eligible educators can deduct unreimbursed expenses for COVID-19 protective items to stop the spread of COVID-19 in the classroom. -
People can get their federal tax refund faster with direct deposit
As taxpayers prepare for the start of the 2021 filing season, the best way to get a refund is to combine electronic filing with direct deposit. It's fast, secure and easy. -
TCJA Reform/CARES Act Bill Introduced in both House and Senate
On January 28, HB 170 and its Senate counterpart, SB 98, were prefiled with the Alabama Legislature and designated as three separate acts: (i) The Alabama Taxpayer Stimulus Freedom Act of 2021, (ii) The Alabama Business Tax Competitiveness Act, and (iii) The Alabama Electing Pass-Through Entity Tax Act. -
IRS offers contact-free signature options for authorization forms
The IRS has a new online option to help tax professionals remotely get signatures from individual and business clients on authorization forms and submit those forms electronically. -
For 2020 Taxpayers without a Driver's License
What data should you input for 2020 taxpayers without a driver's license? -
Many taxpayers can file their state and federal tax returns for free
As taxpayers get ready to file their federal tax returns, most will also be thinking about preparing their state taxes. There's some good news for filers wanting to save money. Eligible taxpayers can file their federal and, in many cases, their state taxes at no cost. -
ADOR Follow-Up to the Consolidated Appropriations Act of 2021
Alabama’s conformity or lack of conformity with the new disaster relief provisions included in the Consolidated Appropriations Act of 2021, including the ability to withdraw funds from retirement accounts -
PPP2 Lender Updates & Firm Strategies at the AICPA Town Hall
During the AICPA Town Hall last week, various AICPA leaders engaged experts from the American Bankers Association and Trusted CFO Solutions to discuss lender updates, firm strategies, and the overall environment (specifically challenges & stresses) for PPP2. -
New law increases deduction limit for corporate cash contributions for disaster relief; IRS provides recordkeeping relief
The Internal Revenue Service today explained how corporations may qualify for the new 100% limit for disaster relief contributions and offered a temporary waiver of the recordkeeping requirement for corporations otherwise qualifying for the increased limit. -
IRS updates FAQs on paid sick leave credit and family leave credit
The Internal Revenue Service today posted updated FAQs about recent legislation that extended and amended tax relief to certain small- and mid-sized employers under the Families First Coronavirus Response Act (FFCRA). The FAQs are available at COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs. -
EITC Awareness Day: Critical tax credit provides a significant refund boost to millions
The Internal Revenue Service and partners across the nation remind taxpayers about the Earned Income Tax Credit today on "EITC Awareness Day" 2021. The IRS and partners nationwide urge people to check to see if they qualify for this important credit. -
IRS offers guidance to taxpayers on identity theft involving unemployment benefits
The Internal Revenue Service today urged taxpayers who receive Forms 1099-G for unemployment benefits they did not actually get because of identity theft to contact their appropriate state agency for a corrected form. -
2021 tax filing season set to begin February 12
The IRS will begin accepting and processing 2020 tax year returns on Friday, February 12, 2021. -
SBA announces steps to improve PPP review process
The U.S. Small Business Administration (SBA) said Tuesday that it is taking steps to improve the agency’s first-draw Paycheck Protection Program loan review process so that small businesses seeking a second-draw loan have as much time as possible to access those funds. -
Tax resources for military members, veterans and their families
The IRS has a variety of resources to help members of the military, veterans and their families navigate the unique and sometimes complex circumstances that come with filing taxes while in the military. -
Calls for Permanent Paid Leave Grow as Temporary Measures Fade
House Democrats, steeled by the pandemic, are eager to advance permanent paid leave legislation in tandem with temporary protections the Biden administration is expected to try to push through Congress in coming weeks. -
States Feel Pressure to Respond to Tax Features of CARES Act
Pressure is mounting on state legislatures and revenue agencies, before the 2021 tax-filing season begins, to clarify their treatment of benefits added to the federal tax code by coronavirus relief laws enacted last year. -
Important reminders before filing 2020 tax returns
Following an unpredictable year with many changes and challenges, the Internal Revenue Service today shared important reminders for taxpayers who are about to file their 2020 federal tax returns. -
SBA to Provide One Year 8(a) Program Extension to Participants Due to COVID-19
The U.S. Small Business Administration published an interim final rule effective January 13, 2021 allowing 8(a) Program participants to elect a one-year program extension in the SBA’s 8(a) Business Development Program due to the challenges of COVID-19. -
The SBA Takes Steps to Improve First Draw Paycheck Protection Program Loan Review
The U.S. Small Business Administration is taking steps to improve the First Draw Paycheck Protection Program loan review so that small businesses have as much time as possible to access much needed PPP funds. The Biden-Harris Administration is focused on ensuring small businesses receive the support they need to keep their doors open and continue to employ millions of Americans across the country. The Administration is working with the Agency to identify immediate solutions to address eligibility, compliance, integrity, and promote transparency. -
New law extends COVID tax credit for employers who keep workers on payroll
The Internal Revenue Service urges employers to take advantage of the newly-extended employee retention credit, designed to make it easier for businesses that, despite challenges posed by COVID-19, choose to keep their employees on the payroll. -
IRS creates new Chief Taxpayer Experience Officer position; Ken Corbin to lead new focus to improve service to taxpayers
As part of a larger effort related to the Taxpayer First Act, the Internal Revenue Service announced today the creation of a new Chief Taxpayer Experience Officer position to help unify and expand efforts across the agency to serve taxpayers. -
All taxpayers are now eligible for identity protection PINs
The IRS has expanded the Identity Protection PIN Opt-In Program to all taxpayers who can verify their identity. -
New IRS "Submit Forms 2848 and 8821 Online" offers contact-free signature options for tax pros and clients sending authorization forms
The Internal Revenue Service rolled out a new online option that will help tax professionals remotely obtain signatures from individual and business clients and submit authorization forms electronically. -
What taxpayers need to know to claim the earned income tax credit
The earned income tax credit can give qualifying workers with low-to-moderate income a substantial financial boost. In 2019, the average amount of this credit was $2,476. -
IRS urges taxpayers to gather tax documents now for smooth filing later
The Internal Revenue Service is reminding taxpayers that organizing tax records is an important first step for getting ready to prepare and file their 2020 tax return. -
Get a federal tax refund faster with direct deposit
The Internal Revenue Service reminds taxpayers that the fastest way to get their tax refund is by filing electronically and choosing direct deposit. -
6 tips for CPAs on newest round of PPP funding
Business leaders and the CPAs who serve them will need to use a variety of strategies all at once as they pursue economic support in the newest round of Paycheck Protection Program (PPP) funding. -
Partner capital account reporting gets transition penalty relief
https://www.journalofaccountancy.com/news/2021/jan/irs-penalty-relief-for-new-partner-capital-account-rules.html -
Taxpayers can start the new tax year off right by checking their withholding
A new year means a fresh start. One way people can get the new tax year off to a good start is by checking their federal income tax withholding. They can do this using the Tax Withholding Estimator on IRS.gov. -
IRS Operations During COVID-19: Mission-critical functions continue
The IRS is open & processing mail, tax returns, payments, refunds, and correspondence. Here's guidance on the IRS' mission critical functions during the pandemic. -
Taxpayers can visit IRS.gov from the safety of their home for answers to tax questions
As people get ready to file their 2020 tax return, the IRS reminds taxpayers they can find answers to their tax questions from the safety of their home using IRS online tools and resources. These IRS.gov tools are easy to use and available 24 hours a day. -
Taxpayers need clarity on coordination of ERC and PPP loans
After the recent enactment of the Consolidated Appropriations Act, 2021 (CAA 2021), P.L. 116-260, taxpayers who obtained loans under the Paycheck Protection Program (PPP) are also eligible to claim the employee retention credit (ERC) but need guidance on how the provisions interact. -
Some individual taxpayers get relief from underpayment penalty
Certain individuals will not be subject to the Sec. 6654 penalty on the underpayment of estimated income taxes if the underpayment is solely attributable to the recent repeal of the excess business loss limitations, the IRS announced on Tuesday (Notice 2021-8). -
Employers can withhold, make payments of deferred Social Security taxes from 2020
The Internal Revenue Service released Notice 2021-11 addressing how employers who elected to defer certain employees' taxes can withhold and pay the deferred taxes throughout 2021 instead of just the first four months of the year. -
60,000 Paycheck Protection Program Loans Approved in First Week
Today, the U.S. Small Business Administration announced that it has approved approximately 60,000 PPP loan applications submitted by nearly 3,000 lenders, for over $5 billion, between the program’s re-opening on Monday, Jan. 11, at 9 a.m. ET through to Sunday, Jan. 17. Last week, the PPP provided dedicated access to community financial institutions that specialize in serving underserved communities, including minority-, women- and veteran-owned small businesses from Monday through Thursday, joined Friday by smaller lenders. -
SBA Proposes Rule to Eliminate Regulations that Exclude Faith-Based Organizations from Seven SBA Programs
The U.S. Small Business Administration invites public comment on a proposed rule designed to remove regulatory provisions that exclude certain faith-based organizations from seven business loan and disaster assistance programs. These programs include the Intermediary Lending Program (ILP), Business Loan programs (7(a), Microloan and 504 programs), Economic Injury Disaster Loan (EIDL) program, Military Reservist Economic Injury Disaster Loan (MREIDL) program and Immediate Disaster Assistance Program (IDAP). -
2021 tax filing season begins Feb. 12; IRS outlines steps to speed refunds during pandemic
The Internal Revenue Service announced that the nation's tax season will start on Friday, February 12, 2021, when the tax agency will begin accepting and processing 2020 tax year returns. -
IRS Free File available today; claim Recovery Rebate Credit and other tax credits
IRS Free File – online tax preparation products available at no charge – launched today, giving taxpayers an early opportunity to claim credits like the Recovery Rebate Credit and other deductions, the Internal Revenue Service announced. -
IRS reminds taxpayers to make final estimated tax payment for 2020
Taxpayers who paid too little tax during 2020 can still avoid a tax-time bill and possible penalties by making a quarterly estimated tax payment now, directly to the Internal Revenue Service. The deadline for making a payment for the fourth quarter of 2020 is Friday, January 15, 2021. -
Businesses have Feb. 1 deadline to provide Forms 1099-MISC and 1099-NEC to recipients
The Internal Revenue Service reminded businesses and other payors that the revised Form 1099-MISC, Miscellaneous Income, and the new Form 1099-NEC, Nonemployee Compensation, must be furnished to most recipients by February 1, 2021. -
Millions of taxpayers will receive their second Economic Impact Payments by debit card
The Treasury Department and the IRS are issuing millions of second Economic Impact Payments by prepaid debit card to speed delivery of the payments to as many people as possible. -
What We’re Learning About Second Draw Paycheck Protection Loans and Other Implementation of Recent Legislative Action
According to an SBA news release issued January 8, 2021, the PPP will re-open the week of January 11. Only community financial institutions will be able to make new PPP loans on January 11 and second draw PPP loans on January 13. Shortly thereafter, all participating lenders will be able to make loans. -
PPP application dates announced
The application window for Paycheck Protection Program (PPP) forgivable loans will open Friday for lenders with $1 billion or less in assets, the US Small Business Administration and Treasury announced. -
National Taxpayer Advocate delivers Annual Report to Congress; focuses on taxpayer impact of COVID-19 and IRS funding needs
National Taxpayer Advocate Erin M. Collins released her 2020 Annual Report to Congress, focusing on the unprecedented challenges taxpayers faced in filing their tax returns and receiving refunds and stimulus payments during a year consumed by the COVID-19 pandemic. The report also finds that a roughly 20% inflation-adjusted reduction in the IRS's budget since fiscal year (FY) 2010 has left the agency with antiquated technology and inadequate staffing levels to meet taxpayers' needs. -
IRS selects new IRSAC members for 2021
The Internal Revenue Service announced the appointment of 13 new members to the Internal Revenue Service Advisory Council. The IRSAC, established in 1953, is an organized public forum for IRS officials and representatives of the public to discuss various issues in tax administration. The council provides the IRS commissioner with relevant feedback, observations and recommendations. It will submit its annual report to the agency at a public meeting in November 2021. -
All taxpayers now eligible for Identity Protection PINs
The Internal Revenue Service expanded the Identity Protection PIN Opt-In Program to all taxpayers who can verify their identities. -
IRS ready for the upcoming tax season; last-minute changes to tax laws included in IRS forms and instructions
The Internal Revenue Service assured taxpayers and tax professionals that updates to key federal tax forms and instructions are complete and will be available when Americans begin filing their tax returns. -
1.1 Million Paycheck Protection Program Loans Forgiven So Far Totaling Over $100 Billion
The U.S. Small Business Administration has already forgiven more than 1.1 million Paycheck Protection Program (PPP) loans for over $100 billion, providing an extraordinary amount of critical relief to America’s small businesses just 3 months since the earliest PPP borrowers’ covered periods ended. -
IRS sends Taxpayer First Act Report to Congress
Recommendations aimed at providing greater ease, convenience to taxpayers and the tax community -
IRS seeks applications for the Electronic Tax Administration Advisory Committee through March 1
The Internal Revenue Service is seeking qualified applicants for nomination to the Electronic Tax Administration Advisory Committee (ETAAC). -
ADOR Affirms Deductibility of PPP Loan-Related Expenses but Unanswered Conformity Questions Remain
The Alabama Department of Revenue issued helpful updated guidance early yesterday, following its December 18, 2020 guidance implementing Governor Ivey’s landmark Supplemental Emergency Proclamation. -
Treasury issues millions of second Economic Impact Payments by debit card
Starting this week, the Treasury Department and the Internal Revenue Service are sending approximately 8 million second Economic Impact Payments (EIPs) by prepaid debit card. -
ALDOR Announces Relief for Taxpayers Affected by Hurricane Zeta
The Alabama Department of Revenue (ALDOR) is offering tax relief to Alabama taxpayers who reside or have a business in Clarke, Dallas, Marengo, Mobile, Perry, Washington, and Wilcox counties and have been affected by damage caused by Hurricane Zeta. The tax relief measures mirror IRS measures in the same declared disaster areas. -
ADOR Guidance Related to Governor Kay Ivey's 21st Supplemental Emergency Proclamation
On December 11, 2020, Governor Kay Ivey issued her 21st Supplemental Emergency Proclamation. The following guidance for Alabama individual income taxpayers, employers, corporate income taxpayers and financial institution excise taxpayers, and Coronavirus Relief Fund (CRF) Grant Awards is being issued by the Commissioner of Alabama Department of Revenue to effectuate the implementation of the tax relief measures included in the Proclamation. -
Eligible Paycheck Protection Program expenses now deductible
The Treasury Department and the Internal Revenue Service issued guidance allowing deductions for the payments of eligible expenses when such payments would result (or be expected to result) in the forgiveness of a loan (covered loan) under the Paycheck Protection Program (PPP). -
Treasury, IRS provide final regulations to help businesses claim credits for carbon capture
Today the Treasury Department and Internal Revenue Service issued final regulations regarding the credit for qualified carbon oxide captured using carbon capture equipment placed in service on or after February 9, 2018. -
IRS revises Form 1024-A, application for Section 501(c)(4) tax-exempt status as part of ongoing efforts to improve service
As part of ongoing efforts to improve service for the tax-exempt community, the Internal Revenue Service issued the revised Form 1024-A, Application for Recognition of Exemption Under Section 501(c)(4), and its instructions to allow electronic filing. -
IRS releases 2020 Progress Update; annual report details unprecedented year
The Internal Revenue Service released its 2020 annual report describing the agency's work delivering taxpayer service and compliance efforts during COVID-19 while spotlighting actions taken by IRS employees to help people during the challenging year. -
IRS announces tax relief for Hurricane Zeta victims in Mississippi
Victims of Hurricane Zeta that began October 28, 2020 now have until March 1, 2021, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today. -
Economic Impact Payments on their way, visit IRS.gov instead of calling
The Internal Revenue Service urge people to visit IRS.gov for the most current information on the second round of Economic Impact Payments rather than calling the agency or their financial institutions or tax software providers. IRS phone assistors do not have additional information beyond what’s available on IRS.gov. -
February 1 is the deadline for employers to issue and file wage statements
Employers must file Form W-2 and other wage statements by Monday, February 1, 2021. This is also the date Form W-2s are due to employees. -
Taxpayers need to know their limitations
This column reviews the basic rules of statutory due dates, extensions, refund limitations, and postponements, and how to determine the statute of limitation in the context of taxpayer deadlines affected by the events of calendar year 2020. -
Treasury, IRS provide relief for those developing renewable energy projects offshore or on federal land
The Treasury Department and the Internal Revenue Service issued guidance PDF providing an extension of the safe harbor for taxpayers developing renewable energy projects offshore or on federal land. -
Treasury and IRS begin delivering second round of Economic Impact Payments to millions of Americans
The Internal Revenue Service and the Treasury Department will begin delivering a second round of Economic Impact Payments as part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 to millions of Americans who received the first round of payments earlier this year. -
Special Edition: AICPA Town Hall Covering PPP2
Erik Asgeirsson and Lisa Simpson have recorded a special edition AICPA Town Hall. They cover a breakdown of the bill, eligibility and tax deductibility, and steps firms can take to prepare. -
Key Alabama Income Tax considerations related to the CARES Act provisions for individuals & businesses
After the enactment of the CARES Act in March, the ASCPA State Tax Committee closely monitored the status of the ongoing efforts to alert the state’s legislative delegation to the critical need for a special legislative session during which several pandemic-related bills could be considered. -
COVID-19 relief bill addresses key PPP issues
The U.S. Senate and House of Representatives overwhelmingly passed a $900 billion COVID-19 relief bill Monday night that provides $600 stimulus payments to individuals, adds $300 to extended weekly unemployment benefits, and provides more than $300 billion in aid for small businesses. -
IRS issues standard mileage rates for 2021
The Internal Revenue Service issued the 2021 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. -
ALDOR Issues Guidance for Emergency Tax Relief Measures
In accordance with Governor Kay Ivey’s 21st Supplemental State of Emergency Proclamation, the Alabama Department of Revenue (ALDOR) has issued guidance for taxpayers and employers regarding the tax relief measures included in the Governor’s proclamation. This guidance can be accessed on ALDOR’s website at https://revenue.alabama.gov/wp-content/uploads/2020/12/201218_ProclamationGuidance.pdf. -
AICPA discusses PPP2 in the latest town hall meeting
Thursday, December 17th, the AICPA discussed another round of COVID-19 relief for taxpayers--PPP2. Learn more about what to expect in the second wave of relief. -
Year-end reminder: Expanded tax benefits help individuals and businesses give to charity during 2020
The Internal Revenue Service explains how expanded tax benefits can help both individuals and businesses give to charity before the end of this year. -
Get Ready for Taxes: Stay home and stay safe with IRS online tools
The Internal Revenue Service encourages taxpayers to take necessary actions now to help file federal tax returns timely and accurately in 2021. -
Initial Observations to CARES Act Provisions layered with Governor Ivey’s Proclamation
The summary brings forth questions and concerns raised by the ASCPA Tax Committee to the Alabama Department of Revenue. We await responses from the ADOR to the highlighted questions and will send members that update as soon as it is received. -
HILL TAX BRIEFING: Bipartisan Group Floats Route to Aid Deal
A bipartisan group of lawmakers yesterday offered details of $908 billion Covid-19 relief plan, split into two parts, a signal of the deep divides that remain over some issues. -
Most taxpayers can deduct up to $300 in charitable contributions without itemizing deductions
Following tax law changes, cash donations of up to $300 made this year by December 31, 2020 are now deductible without having to itemize when people file their taxes in 2021. -
Governor Ivey Signs Emergency Proclamation to Address Tax and Economic Development Issues Delayed Due to COVID-19 Pandemic
Governor Kay Ivey on Friday signed a supplemental emergency proclamation to address tax and economic development issues that were delayed in the Alabama Legislature’s 2020 Regular Session due to the COVID-19 pandemic. -
ALDOR Updating Instructions and Guidance for Certain Returns
In accordance with Governor Kay Ivey’s 21st Supplemental State of Emergency Proclamation, the Alabama Department of Revenue is updating instructions and guidance for its 2020 returns for income tax and Financial Institution Excise Tax to implement the tax relief measures included in the proclamation related to federal CARES Act stimulus payments and PPP loan forgiveness. -
Surprise Proclamation Exempting CARES Act Benefits and Extending Sunset Dates on Two Major Tax Incentives
In a bold move, Governor Kay Ivey late this morning issued a ground-breaking Proclamation that would exempt from Alabama income and financial institution excise tax certain CARES Act benefits and would extend the sunset (expiration) date of two of our major industrial tax incentives. -
IRS: Volunteers needed for free tax prep help
Safety and social distancing, along with virtual options, will be the emphasis now and for the upcoming tax season as the Internal Revenue Service seeks volunteers to provide free tax return preparation through its Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs. -
In January, the IRS Identity Protection PIN Opt-In Program will be expanded to all taxpayers who can properly verify their identity.
The IRS and its Security Summit partners recently announced that multi-factor authentication will be available on all 2021 online tax preparation products. This security feature is designed to protect both taxpayers and tax professionals. -
IRS provides guidance on legislation that increases automatic enrollment cap percentage and eases burdens for certain safe harbor plans
The Internal Revenue Service today issued Notice 2020-86 PDF addressing certain provisions of the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) affecting safe harbor plans, including safe harbor 401(k) plans and certain 403(b) plans. -
IRS has begun sending letters to taxpayers that may need to take action related to Qualified Opportunity Funds
The Internal Revenue Service has started sending letters to taxpayers that may need to take additional actions related to Qualified Opportunity Funds (QOF). -
Treasury and IRS issue final regulations on the deduction for qualified transportation fringe and commuting expenses
The Treasury Department and Internal Revenue Service issued final regulations on the deduction for qualified transportation fringe and commuting expenses following changes made by the Tax Cuts and Jobs Act (TCJA). -
Identity Protection PIN Program will soon be available to taxpayers nationwide
In January, the IRS Identity Protection PIN Opt-In Program will be expanded to all taxpayers who can properly verify their identity. -
Get Ready for Taxes: What’s new and what to consider when filing in 2021
The Internal Revenue Service today encouraged taxpayers to take necessary actions in the final weeks of the year to help file federal tax returns timely and accurately in 2021. -
Internal control focus critical as a result of pandemic changes
For many organizations, the coronavirus pandemic has led to significant changes in day-to-day operations, working environments, and internal controls. -
New Form W-4 slow to gain traction with taxpayers
In 2019, following the passage of the law known as the Tax Cuts and Jobs Act, P.L. 115-97, the IRS rolled out major changes to Form W-4, Employee’s Withholding Certificate. And while the updated Form W-4 is designed to help taxpayers more accurately estimate their withholding, so far, few Americans have used it. -
IRS warns people about a COVID-related text message scam
The IRS and it's Security Summit partners are warning people to be aware of a new text message scam. The thief's goal is to trick people into revealing bank account information under the guise of receiving the $1,200 Economic Impact Payment. -
Highlights from the 2020 National Tax Security Awareness Week
Recently, the IRS and its Security Summit partners hosted the 2020 National Tax Security Awareness Week. The goal of this week is to encourage taxpayers, businesses and tax pros to take steps to protect their tax data and identities. -
AICPA and trade associations ask Congress to fix PPP loan deductibility
In a Dec. 3 letter addressed to the U.S. Senate majority and minority leaders and the leaders of the House of Representatives, several hundred national trade associations, including the AICPA, and many state and regional affiliates appealed to Congress to pass legislation this year reversing the IRS’s treatment of expenses paid by funds borrowed under the Paycheck Protection Program (PPP) that are ultimately forgiven. -
National Tax Security Awareness Week, Day 5: Security Summit alerts tax professionals to potential telework scams during COVID-19, urges all practitioners to use multi-factor authentication
The IRS, state tax agencies and the tax industry marked the final day of National Tax Security Awareness Week with a warning to all tax professionals that they face additional challenges from cybercriminals seeking to exploit COVID-19 fears. -
Expenses used for PPP loan forgiveness: Deductible or not?
The Paycheck Protection Program (PPP), created as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136, authorized loans to certain businesses affected by the COVID-19 pandemic. -
IP PINs to be available to all individuals in 2021
Starting in January, the IRS will allow all individuals to receive an identity protection personal identification number (IP PIN). -
Interest rates remain the same for the first quarter of 2021
The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning January 1, 2021. -
IRS to employers: Remember February 1, 2021 deadline for Form W-2, other wage statements
The Internal Revenue Service today reminded employers that they must file Form W-2 and other wage statements by February 1, 2021, to avoid penalties and help the IRS prevent fraud. -
National Tax Security Awareness Week, Day 4: Security Summit urges businesses to tighten security, offers new protections against identity theft
The Internal Revenue Service, state tax agencies and the tax industry urged businesses to be on guard as thieves try to use their stolen names and data to file fraudulent tax returns. -
IRS to employers: Remember February 1, 2021 deadline for Form W-2, other wage statements
The Internal Revenue Service today reminded employers that they must file Form W-2 and other wage statements by February 1, 2021, to avoid penalties and help the IRS prevent fraud. -
Taxpayers should check out these tips before choosing a tax preparer
As taxpayers get ready to file their 2021 taxes, they may be thinking about hiring a tax preparer. People should choose a tax preparer wisely. This is important because taxpayers are responsible for all the information on their return, no matter who prepares it for them. -
National Tax Security Awareness Week, Day 3: IRS expands Identity Protection PIN Opt-In Program to taxpayers nationwide
As part of the Security Summit effort, the Internal Revenue Service announced today that starting in January the Identity Protection PIN Opt-In Program will be expanded to all taxpayers who can properly verify their identities. -
IRS will soon conceal sensitive data on business tax transcripts
Business tax transcripts will soon look a little different. Beginning December 13, the IRS will conceal some information on business tax transcripts to better protect people from possible identity theft. -
IRS National Tax Security Awareness Week, Day 2: 2021 online tax preparation products to offer multi-factor authentication for taxpayers, tax pros
The Internal Revenue Service, state tax agencies and the tax industry today marked the second day of National Tax Security Awareness Week by announcing an improved feature that will be available on all 2021 online tax preparation products. -
Tips to help people stay safe online
These days most people are spending more time at home and a lot more time online. Whether people are online for work, school, a virtual gathering or shopping, online security is more important than ever. -
National Tax Security Awareness Week opens with warnings to all taxpayers and tax professionals as holidays, 2021 tax season approach
The Internal Revenue Service and the Security Summit partners today issued warnings to all taxpayers and tax professionals to beware of scams and identity theft schemes by criminals taking advantage of the combination of holiday shopping, the approaching tax season and coronavirus concerns. -
Special $300 tax deduction helps most people give to charity this year – even if they don’t itemize
The Internal Revenue Service today reminded taxpayers of a special new provision that will allow more people to easily deduct up to $300 in donations to qualifying charities this year. -
Get Ready for Taxes: Steps to take now to make tax filing easier in 2021
The Internal Revenue Service today encouraged taxpayers to take necessary actions this fall to help file federal tax returns timely and accurately in 2021. -
The Treasury Department and IRS issue final regulations regarding like-kind exchanges of real property
The Treasury Department and Internal Revenue Service issued final regulations relating to section 1031 like-kind exchanges. -
IRS announces procurement research partnership to improve contracting processes
The Internal Revenue Service's Office of the Chief Procurement Officer today announced a research partnership with Data and Analytic Solutions, a small business located in Fairfax, Virginia. -
Register by Nov. 21 to get an Economic Impact Payment; same deadline for federal beneficiaries to get missed $500 per child payments
The Internal Revenue Service today reminded people who don't normally file tax returns that they have until November 21 at 3 p.m. Eastern time to register for an Economic Impact Payment. -
Security Summit partners announce National Tax Security Awareness Week dates; urge increased security measures as fraudsters exploit COVID-19 concerns
The Internal Revenue Service, state tax agencies and the nation's tax industry today announced that the 5th Annual National Tax Security Awareness Week will take place between November 30 and December 4. -
IRS Criminal Investigation releases Fiscal Year 2020 Annual Report; identifies $2.3 billion in tax fraud
The Internal Revenue Service today released the Criminal Investigation Division's annual report PDF, highlighting the agency's successes and criminal enforcement actions taken in fiscal year 2020, the majority of which occurred during COVID-19. A key achievement was the identification of over $10 billion in tax fraud and other financial crimes. -
IRS Advisory Council issues 2020 Annual Report
The Internal Revenue Service Advisory Council (IRSAC) today issued its annual report for 2020, including recommendations to the IRS on new and continuing issues in tax administration. -
Common errors businesses should avoid when claiming employer tax credits
Employers who are filing Form 941, Employer's Quarterly Federal Tax Return and claiming an employer tax credit should read the instructions carefully and take their time when completing the form to avoid mistakes. -
Get Ready for Taxes: Get ready now to file 2020 federal income tax returns
The Internal Revenue Service today encouraged taxpayers to take necessary actions this fall to help them file their federal tax returns timely and accurately in 2021, including special steps related to Economic Impact Payments (EIP). -
Nov. 21 deadline nears to register online for Economic Impact Payment; Some people can claim special credit next tax filing season
The Internal Revenue Service today reminded anyone who doesn't normally file a tax return that they have until 3 p.m. EST this Saturday, November 21, to register with the IRS for an Economic Impact Payment (EIP). -
Here’s how visually impaired taxpayers can access IRS resources and information
The IRS is here to serve and support all of America's taxpayers including, those who use assistive technology. The agency's Alternative Media Center (AMC) provides resources and accessibility services to taxpayers with disabilities. -
Here’s who qualifies for the employee business expense deduction
Employee business expenses can be deducted as an adjustment to income only for specific employment categories and eligible educators. -
IRS to mask key business transcript details; protect taxpayers from identity theft
Moving to protect business taxpayers from identity theft, the Internal Revenue Service today announced that starting December 13 it will begin masking sensitive data on business tax transcripts. -
Self-supporting college students may qualify for an Economic Impact Payment
Any eligible self-supporting college student who doesn't need to file a tax return should register using the Non-Filers tool by 3:00 p.m. ET November 21 to receive an Economic Impact Payment before the end of this year. -
How the CARES Act changes deducting charitable contributions
Whether taxpayers are supporting natural disaster recovery, COVID-19 pandemic aid or another cause that's personally meaningful to them, their charitable donations may be tax deductible. -
Taxpayers have the right to representation when working with the IRS
The IRS grouped all of the rights taxpayers have under the law into the Taxpayper Bill of Rights. Included in the list is the right to retain representation. -
IRS provides certainty regarding the deductibility of payments by partnerships and S corporations for State and local income taxes
The Internal Revenue Service (IRS) today issued Notice 2020-75 PDF, which announces rules to be included in forthcoming proposed regulations. -
IRS reminder to non-filers: Nov. 10 is ‘National EIP Registration Day;’ Community partners can help people sign up for Economic Impact Payment
The Internal Revenue Service today urged anyone who doesn’t normally file a tax return and has not yet received an Economic Impact Payment (EIP) to take advantage of “National EIP Registration Day,” on Tuesday, November 10. -
Reminder to all taxpayers: Gift cards are not used to make tax payments
Gift cards are a popular and convenient gift for all occasions. They're also a tool that scammers use to steal money from people. -
ADOR Issues User-Friendly Guidance on Annual Tax License Renewals
ADOR issued helpful guidance to help taxpayers renew their licenses, including step-by-step instructions and FAQs, as well as telephone contact information if taxpayers have questions or difficulty accessing the ADOR’s website, My Alabama Taxes (MAT). -
Many college students may still qualify for an Economic Impact Payment; review the guidelines and register by Nov. 21 at IRS.gov
he Internal Revenue Service (IRS) today urged any eligible self-supporting college student who doesn't need to file a tax return to register by November 21 so they can receive an Economic Impact Payment before the end of the year. -
New income ranges for IRA eligibility in 2021
There are cost‑of‑living adjustments that may affect a taxpayer's pension plan and other retirement-related savings next year. People should familiarize themselves with these adjustments, so they aren't caught off guard. -
IRS provides guidance on certain distributions from terminating 403(b) plans
The Department of the Treasury and the Internal Revenue Service today issued guidance for employers and employees with terminating 403(b) plans that fund benefits through 403(b)(7) custodial accounts. The guidance reflects changes provided in the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act). -
IRS resources to help small business owners
This week is National Veterans Small Business Week. The IRS has a variety of resources to help small business owners, including veterans, understand their tax responsibilities. Best of all, most of these resources are available online at IRS.gov. -
Security Summit partners warn taxpayers of new COVID-related text scam
The Internal Revenue Service, state tax agencies and the tax industry today warned of a new text scam created by thieves that trick people into disclosing bank account information under the guise of receiving the $1,200 Economic Impact Payment. -
Tax Pros: The Circular 230 and Publication 947 are now available in Spanish
As part of an ongoing effort to provide more useful information and better assistance to many communities, the IRS is making two key publications for tax professionals available in Spanish. -
IRS makes it easier to set up payment agreements; offers other relief to taxpayers struggling with tax debts
The Internal Revenue Service today announced a number of changes designed to help struggling taxpayers impacted by COVID-19 more easily settle their tax debts with the IRS. -
Federal beneficiaries have more time to register for an Economic Impact Payment
Federal beneficiaries who got their Economic Impact Payment but didn't register to receive a $500 supplemental payment per qualifying child can still register for this additional payment using the Non-Filers: Enter Info Here tool before 3 p.m. Eastern November 21, 2020. -
ADOR issues Temporary Suspension of Alabama Terminal Excise Tax Requirements
The Alabama Department of Revenue issued a Temporary Suspension of Alabama Terminal Excise Tax Requirements due to the state of emergency from Hurricane Zeta. -
ALDOR Sales and Other Tax License Renewals Go Annual, Online
The Alabama Department of Revenue (ALDOR) is offering taxpayers a quick and easy way to renew sales tax and other licenses which, starting this year, must be renewed annually. -
IRS: People with foreign accounts reminded of the extension to file 2019 FBAR by Oct. 31, Dec. 31 if impacted by certain natural disasters
The Internal Revenue Service reminds U.S. citizens, entities and resident aliens with a foreign bank or financial account that they have until October 31, 2020, to file their 2019 Report of Foreign Bank and Financial Accounts (FBAR). -
Circular 230, Publication 947 available in Spanish for tax pros for the first time
As part of an ongoing initiative to provide information and assistance to underserved communities more effectively, the Internal Revenue Service announced today that it is making two key publications designed for tax professionals available in Spanish. -
IRS provides tax inflation adjustments for tax year 2021
The Internal Revenue Service today announced the tax year 2021 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. Revenue Procedure 2020-45 PDF provides details about these annual adjustments. -
Income ranges for determining IRA eligibility change for 2021
The Internal Revenue Service announced cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2021 in Notice 2020-79 PDF, posted today on IRS.gov. -
IRS reminds businesses to e-file payroll tax returns
The next quarterly payroll tax return due date is October 31, and the Internal Revenue Service urges business owners to use the speed and convenience of filing the returns electronically. Deposits made by Monday, November 2, however, would still be considered timely as October 31 is a Saturday. -
To help non-filers, IRS sets Nov. 10 as ‘National EIP Registration Day;’ Register at IRS.gov for Economic Impact Payment
The Internal Revenue Service today set November 10 as "National EIP Registration Day," as the agency and partners across the country launch a final push to encourage everyone who doesn't normally file a tax return to register to receive an Economic Impact Payment. -
IRS offers new stricter settlement for micro-captive insurance schemes; offer letters being mailed to groups under audit
The Internal Revenue Service announced today a second time-limited settlement initiative for certain taxpayers under audit who participated in abusive micro-captive insurance transactions. -
IRS releases draft Form 1065 instructions on partner tax basis capital reporting
The IRS released today an early draft of the instructions to Form 1065, U.S. Return of Partnership Income PDF, for tax year 2020 (filing season 2021) that include revised instructions for partnerships required to report capital accounts to partners on Schedule K-1 (Form 1065). -
Charitable Contributions Under Federal Law IRC 170 as compared to CARES Act Section 2205
One of the relief provisions included in the CARES Act was the temporary suspension of the normal 60% of adjusted gross income limitation for cash contributions made to qualified charities during 2020. -
What happens after a disaster that leads to taxpayer relief
No matter how devastating a disaster is, before the IRS can authorize any tax relief, FEMA must issue a major disaster declaration and identify areas qualifying for their Individual Assistance program. Here's a list of tax-related things that usually happen after a major disaster strikes. -
IRS announces 2021 Tax Counseling for the Elderly and Volunteer Income Tax Assistance Program Grants
The Internal Revenue Service recently awarded over $36 million in Tax Counseling for the Elderly and Volunteer Income Tax Assistance grants PDF to organizations that provide free federal tax return preparation. -
Taxpayers who need last year’s tax return have several options
Help is available for taxpayers who need tax information for prior years, but who didn't keep copies of their returns. There are options for helping taxpayers get the information they need. -
IRS reminds tax professionals to renew PTINs now for 2021
The Internal Revenue Service reminds the nation's more than 780,000 active tax return preparers to start the upcoming 2021 filing season smoothly by renewing their Preparer Tax Identification Numbers (PTINs) now. All current PTINs will expire December 31, 2020. -
FBAR deadline extended to Oct. 31 after confusion
After a misworded posting caused confusion about the 2020 deadline to file FBARs (i.e., FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR)), Treasury’s Financial Crimes Enforcement Network (FinCEN) has extended the deadline to Oct. 31. -
IRS fights fraud aimed at charities, joins international awareness week
The Internal Revenue Service is combating fraud by once again joining organizations around the world to highlight the third annual International Charity Fraud Awareness Week, October 19-23. -
Reviewing these disaster resources now can help taxpayers be more prepared later
No one can fully prepare for a disaster, but knowing what resources are available beforehand can make the recovery a little easier. -
IRS provides tax relief for victims of September wildfires in California; Oct. 15 deadline, other dates extended to Jan. 15
Victims of the California wildfires that began on September 4 now have until January 15, 2021, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today. -
IRS provides tax relief for victims of Hurricane Delta; Oct. 15 deadline, other dates extended to Feb. 16
Victims of Hurricane Delta that began on October 6 now have until February 16, 2021 to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today. -
Most taxpayers who requested an extension to file must file today
Today is the filing extension deadline. Most taxpayers who requested an extension of time to file their 2019 tax return must file today. -
Annual Renewal of Alabama Tax Licenses
Beginning November 1, 2020, taxpayers will be required to renew the State of Alabama Tax License annually. -
Helpful information for taxpayers on backup withholding
Taxpayers who receive certain types of income may have backup withholding deducted from these payments. Backup withholding can apply to most payments reported on certain Forms 1099 and W-2G. -
IRS extends Economic Impact Payment registration deadline for non-filers to Nov. 21
The deadline to register for an Economic Impact Payment using the Non-Filers tool is extended to November 21, 2020. -
Online seminars from 2020 IRS Nationwide Tax Forums now available
The Internal Revenue Service today announced 18 new seminars from the 2020 Nationwide Tax Forums are now available on IRS Nationwide Tax Forums Online. The cost is $29 per seminar. -
ADOR issues important notice that affects thousands of businesses
For the first time, Alabama taxpayers holding either an ADOR-issued sales tax, rental tax, sellers use tax, lodgings tax, utility gross receipts tax, or Simplified Sellers Use Tax (SSUT) license must renew that license between November 1 and December 31 of this year- and every year thereafter. -
IRS: Check tax withholdings now as the last quarter of 2020 begins
An adjustment or two made now may boost take home pay or allow taxpayers to pay more in the last quarter of 2020 to avoid a surprise tax bill. -
PPP forgiveness simplified for loans of $50,000 or less
Recipients of Paycheck Protection Program (PPP) loans of $50,000 or less will be able to apply for forgiveness using a simplified application that was released Thursday by Treasury and the U.S. Small Business Administration (SBA). -
SBA clarifies deferral period for PPP loan payments
The US Small Business Administration released guidance Wednesday clarifying that lenders must recognize the previously established extended deferral period for payments on the principal, interest, and fees on all Paycheck Protection Program (PPP) loans, even if the executed promissory note indicates only a six-month deferral. -
IRS adds QR technology to key balance due notices to help taxpayers
Starting this month, the CP14 and CP14 IA notices that inform taxpayers that they owe money on unpaid taxes and their payment options are now equipped with QR bar codes to help those taxpayers securely and easily navigate to the IRS.gov website. -
Relief for IRS 10/15 tax filings
After discussions with the IRS regarding the upcoming 10/15 tax filing due date, we understand that the IRS is willing to work with taxpayers who need relief. -
Here’s what taxpayers need to know about their right to finality
Taxpayers interacting with the IRS have the right to finality. This is especially for taxpayers who are being audited. This is one of ten basic rights —collectively known as the Taxpayer Bill of Rights. -
October 15 deadline nears for taxpayers who requested tax filing extensions
Taxpayers should file their tax returns on or before the October 15 deadline. For those who still owe, pay as soon as possible to reduce any penalties and interest. -
An overview of excise tax
In general, an excise tax is a tax is imposed on the sale of specific goods or services, or on certain uses. Federal excise tax is usually imposed on the sale of things like fuel, airline tickets, heavy trucks and highway tractors, indoor tanning, tires, tobacco and other goods and services. -
IRS Free File marks record increase; available through Oct. 15
The Internal Revenue Service announced today that Free File, the IRS-private sector partnership that offers free tax preparation products, scored a record percentage increase in new users as taxpayers turned to free name-brand providers in 2020. -
People experiencing homelessness may qualify for an Economic Impact Payment
People experiencing homelessness may be eligible for a $1,200 Economic Impact Payment and $500 for each qualifying child under age 17. To get this payment, they must register with the IRS by Saturday, November 21, 2020. -
IRS extends Economic Impact Payment deadline to Nov. 21 to help non-filers
The Internal Revenue Service announced today that the deadline to register for an Economic Impact Payment (EIP) is now November 21, 2020. This new date will provide an additional five weeks beyond the original deadline. -
Business owners should visit IRS.gov for help with tax actions when closing a business
Closing a business is always a difficult decision regardless of the circumstances. With this in mind, the IRS redesigned the closing a business page of IRS.gov to help business owners navigate the federal tax steps when closing a business. -
IRS announces tax relief for Hurricane Sally victims in Florida
Following the recent disaster declaration for individual assistance issued by the Federal Emergency Management Agency, the IRS announced today that affected taxpayers in certain areas will receive tax relief. -
Taxpayers should know and understand their correct filing status
Taxpayers need to know their correct filing status and be familiar with each option. -
IRS provides details about settlements in syndicated conservation easement transaction initiative
Today the Internal Revenue Service Chief Counsel released Chief Counsel Notice 2021-001 PDF ("CC Notice"), which contains information regarding Chief Counsel's settlement initiative for certain pending Tax Court cases involving abusive syndicated conservation easement transactions described in IRS Notice 2017-10 PDF ("SCE transactions"). Prior coverage of the settlement initiative can be found in IRS news release IR-2020-196. -
IRS issues final regulations for Achieving a Better Life Experience accounts
The regulations issued today finalize two previously issued proposed regulations. The first proposed regulation(link is external) was published in 2015 after the enactment of the ABLE Act. The second proposed regulation(link is external) was published in 2019 in response to the Tax Cuts and Jobs Act, which made significant changes to ABLE accounts. -
IRS expands enforcement focus on abusive micro-captive insurance schemes; taxpayers urged to consult independent tax advisor before Oct. 15 filing deadline
The IRS encourages any taxpayer who has continued to engage in an abusive micro-captive insurance transaction to not anticipate being able to settle its transaction with the IRS or Chief Counsel on terms more favorable than previously announced settlement offers and that any potential future settlement initiative that the IRS may consider will require additional concessions by the taxpayer. -
IRS issues final regulations on the deduction for meals and entertainment
The Internal Revenue Service issued final regulations on the business expense deduction for meals and entertainment following changes made by the Tax Cuts and Jobs Act (TCJA). -
Redesigned IRS.gov page helps people closing a business; page features steps to navigate final tax actions
The Internal Revenue Service today launched a redesigned page on IRS.gov to help business owners navigate the federal tax steps when closing a business. -
Terms to help taxpayers better understand Individual Retirement Arrangements
Many taxpayers may have heard of Individual Retirement Arrangements, or IRAs, but some don't know how IRAs help them save for retirement. -
Here’s how to get the status of an Economic Impact Payment
Eligible individuals can visit IRS.gov and use the Get My Payment tool to find out the status of their Economic Impact Payment. This tool will show if a payment has been issued and whether the payment was direct deposited or sent by mail. -
How people can reconstruct records lost in a natural disaster
Reconstructing records after a disaster is important for several reasons including insurance reimbursement and taxes. Most importantly, records can help people prove their disaster-related losses. More accurately estimated losses can help people get more recovery assistance like loans or grants. -
Deadlines to register for an Economic Impact Payment are just around the corner
Federal benefit recipients who don't normally have a filing requirement but do have qualifying children must register by Wednesday, Sept. 30 to receive a $500 catch-up payment per child. Other non-filers have until Thursday, October 15 to register for their Economic Impact Payment. -
IRS highlights employer credits for businesses during Small Business Week
During Small Business Week, the Internal Revenue Service reminds business owners and self-employed individuals of the employer credits available to them during COVID-19. -
IRS provides tax relief for victims of Hurricane Sally; Oct. 15 deadline, other dates extended to Jan. 15
Victims of Hurricane Sally that began on September 14 now have until January 15, 2021 to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today. -
PPP loan forgiveness: What CPAs should be doing now
In the six months since the Paycheck Protection Program (PPP) was created, the only certainty about the program has been uncertainty. -
Deadlines to register for an Economic Impact Payment are just around the corner
Federal benefit recipients who don't normally have a filing requirement but do have qualifying children must register by Wednesday, Sept. 30 to receive a $500 catch-up payment per child. Other non-filers have until Thursday, October 15 to register for their Economic Impact Payment. -
IRS Guidance Regarding CCH Outage Last Week
The IRS just released a statement and guidance for taxpayers and tax preparers who were affected by the CCH outage on September 15th. -
IRS expands multilingual resources and services
It's the IRS's goal to help all taxpayers, no matter where they live, their background or what language they speak. As part of this effort, the IRS is expanding information and assistance available to taxpayers in additional languages. -
IRS reminds taxpayers of the home office deduction rules during Small Business Week
During Small Business Week, September 22-24, the Internal Revenue Service wants individuals to consider taking the home office deduction if they qualify. The benefit may allow taxpayers working from home to deduct certain expenses on their tax return. -
Six tips for people starting a new business
Understanding the tax responsibilities that come with starting a business venture can save taxpayers money and help set them up for success. IRS.gov has the resources and answers to help people through the process of starting a new business. -
ALDOR Updates Relief for Taxpayers Affected by Hurricane Sally
The Alabama Department of Revenue (ALDOR) is offering tax relief to Alabama taxpayers who reside or have a business in Baldwin, Escambia, and Mobile counties and have been affected by damage caused by Hurricane Sally. The tax relief measures mirror IRS measures in the same declared disaster areas. -
IRS highlights online resources during Small Business Week; many resources available in multiple languages
In support of National Small Business Week – September 22 to 24 – the Internal Revenue Service is emphasizing the many IRS online resources available to help small business owners and self-employed individuals handle the tax aspects of their business. -
IRS: Drought-stricken farmers, ranchers have more time to replace livestock
Farmers and ranchers who were forced to sell livestock due to drought may have an additional year to replace the livestock and defer tax on any gains from the forced sales, according to the Internal Revenue Service. -
Businesses can file cash transaction reports electronically and in batches
Businesses that receive cash payments of more than $10,000 must report these payments to the IRS – it's the law. Now businesses can batch file their cash reports; this is especially helpful for those required to file many forms. -
IRS finalizes regulations for 100 percent bonus depreciation
The Treasury Department and the Internal Revenue Service released the last set of final regulations PDF implementing the 100% additional first year depreciation deduction that allows businesses to write off the cost of most depreciable business assets in the year they are placed in service by the business. -
IRS provides final regulations on deductions for estates and non-grantor trusts, including excess deductions on termination
The Internal Revenue Service issued final regulations PDF that provide guidance for decedents' estates and non-grantor trusts clarifying that certain deductions of such estates and non-grantor trusts are not miscellaneous itemized deductions. -
The Oct. 15 deadline for extension filers is almost here
The October 15 filing deadline for taxpayers who requested an extension to file their 2019 tax return is quickly approaching. Taxpayers should remember they can file whenever they're ready and don't have to wait until Thursday, Oct 15. -
IRS announces tax relief for Hurricane Sally victims
Victims of Hurricane Sally that took place on Sept. 14 now have until Jan. 15, 2021, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today. -
CCH E-file Problems 9/15: Penalty Waiver Available for AL Returns Affected
Tax practitioners who use two CCH return preparation products reported problems with corrupted files and an inability to e-file returns on Sept. 15, resulting in tax returns that were not filed on time. -
IRS releases state-by-state breakdown of nearly 9 million non-filers who will be mailed letters about Economic Impact Payments
The IRS will sent a special mailing to people who typically aren't required to file federal income tax returns but may qualify for an Economic Impact Payment. The letter urges recipients to visit the special Non-Filers: Enter Payment Info Here tool on IRS.gov before the October 15 deadline to register for an Economic Impact Payment. -
What to know about the tax-exempt application process for charities
Organizations that meet specified requirements under Section 501(c) of the Internal Revenue Code may qualify for tax-exempt status and are required to apply for recognition as tax-exempt. Here are some key things that charities should know about the application process. -
ALDOR to Consider Relief for Taxpayers Affected by Hurricane Sally
In accordance with the state of emergency declared by Gov. Kay Ivey, the Alabama Department of Revenue (ALDOR) will consider, on a case-by-case basis, relief from late filing penalties for Alabama taxpayers who in the coming days and weeks are unable to timely file tax returns as a result of damage or disruptions caused by Hurricane Sally. -
IRS reminds taxpayers and practitioners of expedited letter ruling procedures
The Internal Revenue Service continues to look for ways to assist taxpayers affected by the COVID-19 pandemic. As part of that effort, the IRS reminds taxpayers and tax practitioners of the procedures for requesting expedited handling of requests for letter rulings under Rev. Proc. 2020-1, 2020-1 I.R.B. 1 (January 2, 2020). -
Free IRS2Go app puts information at taxpayers’ fingertips
Taxpayers can get quick access to popular IRS tools by using IRS2Go on their mobile device. The mobile app is available and free to download on any iOS or Android device. -
IRS reminds taxpayers who filed an extension that the Oct. 15 due date approaches
The Internal Revenue Service today reminds taxpayers who filed an extension that the October 15 due date to file 2019 tax returns is approaching. Taxpayers should complete their tax returns and file on or before the October 15 deadline. -
All taxpayers have the right to be informed
When something happens to a taxpayer's account, that taxpayer has the right to be informed about the activity. In fact, this right is one of ten outlined in the Taxpayer Bill of Rights. -
Suggestions for members unable to meet tax-filing deadlines due to pandemic issues
With Sept. 15 tax filing deadlines looming, some tax practitioners have expressed concerns that they will not be able to meet those deadlines for a variety of reasons related to the global pandemic. -
A tax checklist for newly married couples
Marriage changes a lot of things and taxes are on that list. Newlyweds should know how saying “I do” can affect their tax situation. -
Final regulations on business interest expense deduction limitation published in the Federal Register
The final regulations (PDF) for the business interest expense deduction limitation published in the Federal Register today. The final regulations vary slightly from the document released on IRS.gov on July 28, 2020. -
People should have tax withheld from unemployment now to avoid a tax-time surprise
Due to the Coronavirus pandemic, millions of Americans received or are currently receiving unemployment compensation, many of them for the first time. It's important for these individuals to know that unemployment compensation is taxable. -
IRS selects 10 new members for Electronic Tax Administration Advisory Committee
The Internal Revenue Service has selected 10 new members for the Electronic Tax Administration Advisory Committee (ETAAC). -
IRS adds six more forms to list that can be signed digitally; 16 now available
On August 28, the IRS announced that it would temporarily allow the use of digital signatures on certain forms that cannot be filed electronically. Today, the agency added several more forms (PDF) to that list. -
E-signatures temporarily allowed on some tax forms
Taxpayers are encouraged to e-file forms this year, whenever possible, because of COVID-19. To protect the health of taxpayers and tax professionals, the IRS is temporarily allowing the use of digital signatures on some tax forms that can't be filed electronically. -
IRS highlights higher penalties for some tax returns filed after Sept. 14
The Internal Revenue Service today urged individuals who owe taxes but have not yet filed for 2019 to act now to avoid larger penalties that, by law, start after September 14. -
IRS expands tax help into more languages; Form 1040 offered in Spanish and more services, information available in multiple languages
As part of a larger effort to reach underserved communities, the Internal Revenue Service is taking a number of aggressive steps to expand information and assistance available to taxpayers in additional languages, including providing the Form 1040 in Spanish for the first time. -
Third quarter estimated tax payments due Sept. 15
The Internal Revenue Service today reminded the self-employed, investors, retirees and others with income not subject to withholding that third quarter estimated tax payments for 2020 are due September 15. -
Some taxpayers may need to make estimated tax payments
Some taxpayers earn income not subject to withholding. For small business owners and self-employed people this can mean making quarterly estimated tax payments. -
RP-2020-41: Asset/liability percentages
Revenue Procedure 2020-41 provides the domestic asset/liability percentages and domestic investment yields needed by foreign life insurance companies and foreign property and liability insurance companies to compute their minimum effectively connected net investment income under section 842(b) of the Internal Revenue Code for taxable years beginning after December 31, 2018. -
IRS to mail special letter to estimated 9 million non-filers, urging them to claim Economic Impact Payment by Oct. 15 at IRS.gov
Later this month, the Internal Revenue Service will start mailing letters to roughly nine million Americans who typically don't file federal income tax returns who may be eligible for, but have not registered to claim, an Economic Impact Payment. -
Interest rates remain the same for the fourth quarter of 2020
The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning October 1, 2020. -
Tips for taxpayers who need to file an amended tax return
The IRS will correct common errors during processing. However, there are certain situations in which a taxpayer may need to file an amended return to make a correction. -
Federal benefit recipients with children have more time to get the $500 Economic Impact Payment
The IRS has reopened the registration period for individuals who receive Social Security, Supplemental Security Income, Railroad Retirement or veteran's benefits, but didn't receive $500 per child earlier this year when they received their own Economic Impact Payment. -
IRS launches BBA centralized partnership audit webpage
The IRS announces the launch of the Bi-Partisan Budget Act (BBA) Centralized Partnership Audit Regime webpage. -
IRS provides additional guidance on base erosion and anti-abuse tax
The Internal Revenue Service issued final regulations (PDF) today providing additional guidance on the base erosion and anti-abuse tax (BEAT). -
Millions of taxpayers receive a tax refund interest payment
In mid-August interest payments were sent to nearly 14 million individual taxpayers. People who got these payments filed their 2019 federal income tax returns by the July 15 deadline and were owed refunds. -
ASCPA Joins AICPA, COST in Letter Urging Congressional Support for State Tax Filing Relief for Remote Workers
The ASCPA has joined more than 120 employers and organizations across the nation in signing a letter to Congressional leaders urging them to support state tax filing and withholding relief for remote workers during the pandemic by enacting Section 403 of S.4318, the American Workers, Families and Employers Assistance Act, and a related measure, S.3995, the Remote and Mobile Worker Relief Act. -
IRS provides tax relief for victims of Hurricane Laura; Oct. 15 deadline, other dates extended to Dec. 31
Victims of Hurricane Laura that began August 22 now have until December 31, 2020, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today. -
IRS approves temporary use of e-signatures for certain forms
To protect the health of taxpayers and tax professionals, the Internal Revenue Service today announced it will temporarily allow the use of digital signatures on certain forms that cannot be filed electronically. -
Guidance issued to implement Presidential Memorandum deferring certain employee Social Security tax withholding
The Department of Treasury and Internal Revenue Service issued guidance (PDF) implementing the Presidential Memorandum issued on August 8, 2020, allowing employers to defer withholding and payment of the employee's portion of the Social Security tax if the employee's wages are below a certain amount. -
Settlements begin in syndicated conservation easement transaction initiative
As part of a continuing effort to combat abusive transactions, the Internal Revenue Service announced today the completion of the first settlement under its initiative to resolve certain docketed cases involving syndicated conservation easement transactions. -
IRS accepting applicants for the Compliance Assurance Process for 2021
The Internal Revenue Service announced today the opening of the application period for the 2021 Compliance Assurance Process program. The application period runs Sept. 1 to Nov. 13, 2020. The IRS will inform applicants if they're accepted into the program in February 2021. -
Taxpayers should renew expiring ITINs early to avoid a refund delay next year
Individual taxpayer identification numbers are used by taxpayers who have tax filing or payment obligations under U.S. law but who are not eligible for a Social Security number. People with expiring individual taxpayer identification numbers should renew their number ASAP. This will help avoid unnecessary delays related to their tax refund next year. -
Temporary Suspension of Alabama Terminal Excise Tax Requirements
Vernon Barnett, Commissioner of the Alabama Department of Revenue, pursuant to the power granted to me under §40-2-11, Code of Alabama 1975, and Act 2019-164, Ala. Acts 2019, hereby declares that because there is a state of emergency resulting from Hurricane Laura, it is necessary to assist and expedite all efforts of relief. -
Tips for taxpayers who need to file a new W-4
All taxpayers should review their withholding annually. They can use the IRS Tax Withholding Estimator to check and make sure they're not having too little or too much federal tax withheld. This tool offers workers, retirees and self-employed individuals a step-by-step method to help figure out if they should adjust their withholding. -
Earning side income: Is it a hobby or a business?
Whether it's something they've been doing for years or something they just started to make extra money, taxpayers must report income earned from hobbies in 2020 on next year's tax return. -
New PPP forgiveness guidance addresses owner-employee compensation, rent-related costs
The U.S. Small Business Administration (SBA) and Treasury issued an interim final rule Monday addressing Paycheck Protection Program (PPP) forgiveness issues related to owner-employee compensation and the eligibility of nonpayroll costs. -
IRS: 50,000 spouses to get catch-up Economic Impact Payments
The Internal Revenue Service will soon send catch-up Economic Impact Payment checks to about 50,000 individuals whose portion of the EIP was diverted to pay their spouse's past-due child support. -
Deadline to file and pay heavy highway vehicle use tax is Aug. 31
The deadline to file and pay heavy highway vehicle use tax is Monday, August 31. All taxpayers who file Form 2290 are encouraged to do so electronically. Those with 25 or more taxed vehicles must e-file. All the information needed to file is on the Trucking Tax Center. -
As peak hurricane season nears, IRS reminds people to prepare for natural disasters
The Internal Revenue Service reminds people to create or maintain an emergency preparedness plan. A well-thought-out plan is a critical component for surviving natural disasters. Taxpayers, whether individuals, organizations or businesses, should take time now to create or update their emergency plans. -
IRS updates procedures for designating taxpayer disputes for litigation, implementing provisions of Taxpayer First Act
The Internal Revenue Service today issued a memorandum (PDF) that provides interim guidance to the agency's compliance staff on requests to designate issues for litigation. -
IRS: Deadline to return distributions to retirement accounts is Aug. 31
The Internal Revenue Service today reminds IRA owners, beneficiaries or workplace retirement plan participants who received a Required Minimum Distribution (RMD) this year that they have until August 31 to rollover or repay the distribution to avoid paying taxes. -
Multi-Factor Authentication: Overview for Tax Professionals
The Alabama Department of Revenue has shared a PowerPoint Presentation, an overview of Multifactor Authentication for Tax Professionals. -
Could the state tax virus relief money? Yes, but lawmakers want to change that.
Many Alabama families and businesses that received federal coronavirus relief funds will be taxed by the state if legislative action isn’t taken -
IRS temporarily stops mailing notices to taxpayers with balances due
The IRS has suspended the mailing of three notices – the CP501, the CP503 and the CP504 – that go to taxpayers who have a balance due on their taxes. -
Important things all extension filers should remember
October 15 is almost here. That's the last day to file for most people who requested an extension for their 2019 tax return. These taxpayers can file any time before Thursday, October 15 if they have all their required tax documents. They can also pay part or all of their taxes anytime on IRS.gov. -
Implementing the payroll tax deferral
In this episode of Journal of Accountancy Podcast, Ed Karl, the AICPA’s vice president–Tax Policy & Advocacy, addresses questions the AICPA Tax Executive Committee has raised in official comments to Treasury and the IRS concerning President Donald Trump’s Aug. 8 memorandum ordering Treasury to defer the withholding, deposit, and payment of payroll taxes imposed by Sec. 3101(a) — better known as the employee portion of Social Security tax, currently 6.2% of covered wages and compensation — and a comparable rate of tax under Sec. 3201 — that’s the Railroad Retirement tax — for Sept. 1, 2020, through the end of the year. -
A taxpayer’s first option: IRS.gov
The latest tax information and tips are just a click away. IRS.gov provides taxpayer assistance 24/7 and is regularly updated to reflect the most current tax information for most tax-related questions. -
IRS urges employers to choose carefully when selecting a payroll service provider
Using a reputable firm or group can protect employers from fraud; options include PSPs, RAs and CPEOs. -
13.9 million Americans to receive IRS tax refund interest; taxable payments to average $18
This week the Treasury Department and the Internal Revenue Service will send interest payments to about 13.9 million individual taxpayers who timely filed their 2019 federal income tax returns and are receiving refunds. -
Payroll Tax Deferral Presidential Action: AICPA Addresses Questions, Need for Guidance
President Trump’s recent executive action will allow employees to defer certain payroll tax obligations. The AICPA wrote to the Treasury and the IRS for guidance on several key questions -
All taxpayers have the right to confidentiality
Information a taxpayer gives the IRS won't be shared with outside parties, unless allowed by the taxpayer or by law. This is the right to confidentiality; one of ten rights known collectively as the Taxpayer Bill of Rights. -
IRS: Unemployment compensation is taxable; have tax withheld now and avoid a tax-time surprise
With millions of Americans now receiving taxable unemployment compensation, many of them for the first time, the Internal Revenue Service today reminded people receiving unemployment compensation that they can have tax withheld from their benefits now to help avoid owing taxes on this income when they file their federal income tax return next year. -
Working Virtually: make a plan for protecting data and reporting theft; Part 5 of Security Summit tips for tax professionals
The Internal Revenue Service and Security Summit partners today reminded tax professionals that federal law requires them to have a written information security plan. -
Tax credits can help offset the cost of higher education
Whether it's online, in-person, part-time or full-time, higher education can be expensive. The good news is there are tax credits that can help offset these costs. These credits reduce the amount of tax someone owes. If the credit reduces tax to less than zero, the taxpayer could even receive a refund. -
Notice 2020-64 -- August interest rates
Notice 2020-64 provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates used under § 417(e)(3), and the 24-month average segment rates under § 430(h)(2) of the Internal Revenue Code. -
Rev. Rul. 2020-16 -- Sept. 2020 Applicable Federal Rates (AFR)
Rev. Rul. 2020-16 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, the adjusted federal long-term tax-exempt rate. -
Now available: IRS Form 1040-X electronic filing
Major IRS milestone helps taxpayers correct tax returns with fewer errors, speeds processing. -
IRS takes new steps to ensure people with children receive $500 Economic Impact Payments
The Internal Revenue Service continues to look for ways to help people who were unable to provide their information in time to receive Economic Impact Payments for their children. As part of that effort, the Internal Revenue Service announced today it will reopen the registration period for federal beneficiaries who didn't receive $500 per child payments earlier this year. -
RP-2020-39: Examination of returns and claims for refund, credit, or abatement; determination of correct tax liability
Revenue Procedure 2020-39 addresses normalization issues that have arisen or are anticipated in ratemaking proceedings due to the corporate tax rate decrease that was included in the Tax Cuts and Jobs Act, Pub. L. 115-97 (131 Stat 2054), enacted on December 22, 2017. -
AICPA requests guidance on payroll tax deferral
The AICPA on Wednesday sent a letter to Treasury and the IRS requesting guidance on the recent presidential memorandum deferring some employee payroll taxes until next year. -
Taxpayers must pay no more than the correct amount of tax
A taxpayer may owe money when they complete and file their tax return. They have the right to pay only the amount of tax legally due, including interest and penalties, and to have the IRS apply all tax payments properly. This is one of ten rights known collectively as the Taxpayer Bill of Rights. -
IRS reminds truckers of Aug. 31 highway use tax return deadline; e-file encouraged
The Internal Revenue Service today reminded owners of most heavy highway vehicles of their responsibility to timely file Form 2290, Heavy Highway Vehicle Use Tax Return. -
N-2020-60: Election of Alternative Minimum Funding Standards for Community Newspaper Plans
Notice 2020-60 provides procedures for the election of alternative minimum funding standards for defined benefit pension plans sponsored by community newspapers under § 430(m) of the Internal Revenue Code, which was added by § 115 of the SECURE Act. -
Global Disruption of Three Terror Finance Cyber-Enabled Campaigns
Largest Ever Seizure of Terrorist Organizations’ Cryptocurrency Accounts -
Using the Tax Withholding Estimator will help taxpayers avoid surprises next year
Using the IRS Tax Withholding Estimator can help taxpayers have the right amount of tax withheld and avoid surprises when filing next year. -
A-2020-14: Changes to User Fees for Certain Letter Ruling and Determination Letter Requests Submitted to Employee Plans Rulings and Agreements, Effective January 4, 2021
Announcement 2020-14 provides that user fees relating to certain requests for letter rulings and determination letters submitted to Employee Plans Rulings and Agreements will increase in four categories, effective January 4, 2021. -
New PPP guidance addresses health insurance, EIDL, other issues
Some questions on federal coronavirus measures were answered Tuesday in guidance issued by the U.S. Small Business Administration (SBA) and Treasury. -
Pandemic-related FAQs for health care entities
With assistance from a group of health care experts formed by the AICPA, an FAQ document has been developed to assist financial statement preparers and audit practitioners as they work through some of the challenges they are encountering amid the pandemic. -
Financial safety is an important part of disaster preparedness
Before a natural disaster strikes, taxpayers are encouraged to prepare, if possible. This includes developing evacuation plans, putting together kits of essential supplies and putting financial safety measures in place. -
Working Virtually: Avoid phishing scams; Part 4 of Security Summit tips for tax professionals
The Internal Revenue Service and the Security Summit partners today warned tax professionals to be alert to new phishing scams that try to take advantage of COVID-19, Economic Impact Payments and increased teleworking by practitioners. -
Good recordkeeping is an essential element of tax planning
Now is a good time for people to begin thinking about next year's tax return. While it may seem early to be preparing for 2021, reviewing your recordkeeping now will pay off when it comes time to file again. -
Executive order delays workers’ payroll tax payments
President Donald Trump on Saturday issued an executive order to defer the withholding, deposit, and payment of certain payroll taxes paid from Sept. 1 through Dec. 31, 2020. -
Joint Board announces temporary waiver of ‘physical presence’ education requirement for enrolled actuaries
The Joint Board for the Enrollment of Actuaries today provided enrolled actuaries with notice that it is waiving the physical presence requirement for continuing professional education (CPE) credit for any formal programs conducted from January 1, 2020, through December 31, 2022. -
N-2020-62: Safe Harbor Explanations – Eligible Rollover Distributions
Notice 2020-62: Administrators of qualified retirement plans are required to provide a written explanation of tax consequences when making distributions that are eligible for rollover. -
N-2020-61: Special Funding and Benefit Limitation Rules for Single-Employer Defined Benefit Pension Plans under the CARES Act
Notice 2020-61 provides guidance regarding the special rules relating to single-employer defined benefit pension plans under § 3608 of the CARES Act. -
N-2020-55: Relief for Taxpayers Affected by Ongoing Coronavirus Disease Pandemic, Related to Sport Fishing Equipment and Bows and Arrows Excise Tax Filing and Payment Deadlines
Notice 2020-55 provides expanded disaster relief, in the form of a postponement until October 31, 2020, of certain Federal excise tax filing and payment deadlines, and associated interest, penalties, and additions to tax, for taxpayers who owe a federal excise tax for sales of sport fishing or archery equipment for the first quarter of 2020. -
Here’s what taxpayers need to know about the home office deduction
The home office deduction allows qualifying taxpayers to deduct certain home expenses on their tax return. -
Dirty Dozen part 2: Thieves are constantly coming up with ways to scam taxpayers
This is the second of two tips exploring the IRS Dirty Dozen tax scam list. Tax scams tend to rise during tax season or during times of crisis. Scam artists are using the COVID-19 pandemic to try to steal money and information from taxpayers. -
Dirty Dozen part 1: Taxpayers should be on the lookout for these scams
All tax scams put taxpayers at risk. This is the first of two tips taking a closer look at the IRS Dirty Dozen tax scam list. This year, taxpayers should be especially, watchful for aggressive schemes related to COVID-19 relief, including Economic Impact Payments. -
Working Virtually: Use a virtual private network to secure remote locations; Part 3 of Security Summit tips for tax professionals
As more tax professionals consider teleworking during COVID-19, the Internal Revenue Service and the Security Summit partners today urged practitioners to secure remote locations by using a virtual private network (VPN) to protect against cyber intruders. -
What taxpayers should do if they get a letter or notice from the IRS
Every year the IRS mails letters or notices to taxpayers for many different reasons. Here are some do's and don'ts for taxpayers who receive one. -
Gasoline and Undyed Diesel Fuel Excise Tax Law Changes
On March 12, 2019, Governor Kay Ivey signed into law Act 2019-2, also known as the Rebuild Alabama Act (the “Act”). The Act was codified in Title 40, Chapter 17, Articles 12 and 12A. Pursuant to the provisions of the Act, the following fuel tax rate changes and filing requirements will take effect on October 1, 2020. -
IRS grants additional relief for rehabilitation credit deadlines
Because of the burdens the COVID-19 pandemic has placed on taxpayers claiming the rehabilitation credit, the Internal Revenue Service today issued Notice 2020-58 (PDF) that provides additional relief to taxpayers in satisfying the substantial rehabilitation test. -
IRS issues proposed regulations for TCJA’s simplified tax accounting rules for small businesses
The Internal Revenue Service issued proposed regulations (PDF) updating various tax accounting regulations to adopt the simplified tax accounting rules for small businesses under the Tax Cuts and Jobs Act (TCJA). -
IRS issues final regulations and other guidance on business interest expense deduction limitation
The Internal Revenue Service issued final regulations (PDF) regarding the provision of the Tax Cuts and Jobs Act that limits the deduction for business interest expense, including basic statutory amendments made by the CARES Act. -
IRS: New law provides relief for eligible taxpayers who need funds from IRAs and other retirement plans
The Internal Revenue Service provided a reminder today that the Coronavirus Aid, Relief, and Economic Security (CARES) Act can help eligible taxpayers in need by providing favorable tax treatment for withdrawals from retirement plans and IRAs and allowing certain retirement plans to offer expanded loan options. -
Employers should consider filing payroll taxes electronically
Business owners can make taxes a little easier on themselves by filing payroll and employment taxes electronically. -
Working Virtually: Use multi-factor authentication to protect accounts; Part 2 of Security Summit tips for tax professionals
With heightened threats during COVID-19, the Internal Revenue Service and Security Summit partners today called on tax professionals to select multi-factor authentication options whenever possible to prevent identity thieves from gaining access to client accounts. -
Special tax benefits for members of the military and their families
Members of the military may qualify for special tax benefits. For instance, they don't have to pay taxes on some types of income. Special rules could lower the tax they owe or allow them more time to file and pay their federal taxes. -
IRS GuideWire: N-2020-59
Notice 2020-59 contains a proposed revenue procedure with a safe harbor for a trade or business that manages or operates a qualified residential living facility to be treated as a real property trade or business solely for purposes of qualifying as an electing real property trade or business under section 163(j)(7)(B) of the Internal Revenue Code. -
IRS provides guidance on recapturing excess employment tax credits
The Internal Revenue Service issued a temporary regulation and a proposed regulation to reconcile advance payments of refundable employment tax credits and recapture the benefit of these credits when necessary. -
Attention teachers: Those school expenses might be tax deductible
School may look a little different this year, but eligible teachers and other educators can still deduct certain unreimbursed expenses on their tax return next year. -
Pandemic teleworking causes state tax withholding issues
Determining the jurisdiction where an employee owes state and local taxes has become complicated as work arrangements have changed drastically during the pandemic. In addition to owing income taxes in an employee’s state of residency, without specific relief, the employee may also owe income taxes in any jurisdiction where they may have worked. -
ASCPA President & CEO Calls for Federal Relief
The Alabama Society of Certified Public Accountants (ASCPA) today announced that Jeannine Birmingham, President and CEO, along with 27 other state society CEOS, sent a letter to Congressional leadership urging them to pass legislation that would close a projected collective budget gap of $555 billion that states and local governments face in this fiscal year and the following two years. -
How taxpayers can troubleshoot common after-tax-day issues
While the deadline to file and pay federal income taxes has passed for most people, there are some taxpayers still facing tax-related issues. -
IRS creates new Enterprise Digitalization and Case Management office; Smith, Abold-LaBreche to serve as co-directors
The Internal Revenue Service announced today the creation of the new Enterprise Digitalization and Case Management office, which will spearhead IRS efforts to empower taxpayers and IRS employees to rapidly resolve issues in a simplified digital environment. -
RP 2020-36: Examination of returns and claims for refund, credit, or abatement; determination of correct tax liability
RP 2020-36 provides indexing adjustments required by statute for certain provisions under section 36B. -
IRS reminds businesses filing cash transaction reports about e-file option; batch filing now available
The Internal Revenue Service reminds businesses required to file reports of large cash transactions that e-filing is a fast, easy and secure option for filing their reports. -
Working Virtually: Protect tax data at home and at work with the "Security Six"
With cyber thieves active during COVID-19, the Internal Revenue Service and the Security Summit partners today urged tax professionals to review critical security steps to ensure they are fully protecting client data whether working in the office or a remote location. -
All taxpayers should know the telltale signs of common tax scams
Every year scammers add new twists to well-known tax-related scams and 2020 is no exception. Taxpayers should remember that the IRS generally first mails a bill to a taxpayer who owes taxes. There are special circumstances when the IRS will call or come to a home or business. -
Treasury, IRS issue final and proposed regulations on income subject to a high rate of foreign tax
The Department of the Treasury and the Internal Revenue Service today issued a final regulation (PDF) addressing the treatment of income earned by certain foreign corporations that is subject to a high rate of foreign tax. -
Extension filers: Tax help is always available on IRS.gov
The deadline for taxpayers who requested an extension to file is going to be here before they know it. The deadline for these filers to submit their 2019 federal tax returns is Thursday, October 15, 2020. -
What someone should do if they missed the July 15 deadline to file and pay
While the federal income tax-filing deadline has passed for most people, some taxpayers haven't filed their 2019 tax returns yet. If a taxpayer is entitled to a refund, there's no penalty for filing late. Penalties and interest began to accrue on any remaining unpaid tax due as of July 16, 2020. -
IRS advice for those who missed the July 15 deadline, file now to avoid bigger bill
For those who missed the July 15 tax deadline and didn't request an extension, the Internal Revenue Service reminds taxpayers about some important tips, including filing electronically as soon as possible to reduce potential penalties. -
IRS: Seniors, retirees not required to take distributions from retirement accounts this year under new law
The Internal Revenue Service today reminds seniors and retirees that they are not required to take money out of their IRAs and workplace retirement plans this year. -
Security Summit focuses on tax pro security during coronavirus; new series on working virtually: protecting tax data at home and at work
The Internal Revenue Service and the Security Summit partners today urged tax professionals this summer to review critical security steps to ensure they are fully protecting client data whether working in the office or a remote location. -
IRS unveils "Dirty Dozen" list of tax scams for 2020; Americans urged to be vigilant to these threats during the pandemic and its aftermath
The Internal Revenue Service today announced its annual "Dirty Dozen" list of tax scams with a special emphasis on aggressive and evolving schemes related to coronavirus tax relief, including Economic Impact Payments. -
How taxpayers can quickly and easily check their refund status
Taxpayers can use the Where's My Refund? tool to start checking on the status of refund 24 hours after the IRS acknowledges receipt of the taxpayer's e-filed tax return. Currently, the IRS is experiencing delays in processing paper tax returns due to limited staffing as a result of COVID-19. -
RR-2020-15: Applicable Federal Rates
Revenue Ruling 2020-15 provides various prescribed rates for federal income tax purposes including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by § 1274. -
IRS debunks tax refund myths
With the July 15 tax deadline now past, the Internal Revenue Service reminds all taxpayers that there is no secret way to find out when a refund will be issued. -
N-2020-57: Interest rates for July 2020
Notice 2020-57 provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates used under § 417(e)(3), and the 24-month average segment rates under § 430(h)(2) of the Internal Revenue Code. -
N-2020-56: Additional Relief with Respect to Deadlines under Section 501(r)(3) Applicable to Hospital Organizations Affected by the Ongoing Coronavirus Disease 2019 Pandemic
Notice 2020-56 extends the deadline for conducting a CHNA and adopting an implementation strategy to meet the community health needs identified through the CHNA to December 31, 2020. -
IRS provides additional relief for tax-exempt hospitals: Deadline for completing certain needs assessment requirements moved to Dec. 31
Because of the burdens the COVID-19 pandemic has placed on hospitals, the Internal Revenue Service today provided additional relief to hospital organizations that must meet the Community Health Needs Assessments (CHNA) requirements. -
Tax returns are due today; taxpayers who can’t pay should still file today
Today, 2019 tax returns are due. Taxpayers should remember to file or request an extension of time to file and pay any taxes they owe by the July 15 deadline to avoid penalties and interest. Here are some tips for taxpayers who owe tax, but who can't immediately pay their tax bill. -
‘Where’s My Refund?’ tool on IRS.gov takes guesswork out of when to expect refunds
The IRS reminds taxpayers that one of the best ways to check on their refund is the Where's My Refund? tool on the IRS website and the IRS2Go app. Updated once a day, usually overnight, this useful tool gives taxpayers a projected refund issuance date as soon as it is approved. -
IRS is sending letters to those experiencing a delay with advance payment of employer credits
The Internal Revenue Service has started sending letters to taxpayers who have experienced a delay in the processing of their Form 7200, Advance Payment of Employer Credits Due To COVID-19 (PDF). -
Special Report: Primary Election Run-offs & Updated Statewide Health Order
The Primary Election Runoffs for a U.S. Senate seat, Congressional District 1, Congressional District 2 and a seat on the Alabama Court of Criminal Appeals were held yesterday, July 14, 2020. Starting tomorrow, July 16, 2020, the Statewide Health Order will be updated to require people to wear a mask in public. -
IRS announces 2021 PTIN fees for tax return preparers
The Internal Revenue Service announced today the annual fee for 2021 that tax return preparers must pay to apply for or renew their Preparer Tax Identification Number (PTIN). -
Major changes to retirement plans due to COVID-19
Qualified individuals affected by COVID-19 may be able to withdraw up to $100,000 from their eligible retirement plans, including IRAs, between January 1 and December 30, 2020. -
IRS reminder: Taxpayers can get an extension to Oct. 15 to file taxes
The Internal Revenue Service today reminds taxpayers that they have until the postponed due date of July 15, 2020, to file an extension for their 2019 federal tax return. -
Treasury and IRS release draft partnership form to provide greater clarity on international tax reporting
The Treasury Department and the IRS today released a proposed redesigned partnership form for tax year 2021 (filing season 2022). -
IRS reminder: File and pay 2019 business taxes by July 15; 2020 estimated tax also due
The Internal Revenue Service today reminded business taxpayers that their 2019 tax returns and tax payments, as well as their first two 2020 estimated tax payments, are due on Wednesday, July 15. -
Have an installment agreement or payment plan? Payments should resume starting July 15
The IRS reminds taxpayers who received tax relief as part of the People First Initiative and didn't make previously owed tax payments between March 25, 2020 and July 15, 2020 they will need to restart those payments to avoid penalties. -
Should my firm file protective claims in advance of the Supreme Court decision on ACA?
This Q&A from AICPA and the ASCPA can help your firm’s decision-making. In March of this year, the U.S. Supreme Court announced that it will hear a case that challenges the constitutionality of the individual mandate under The Patient Protection and Affordable Care Act (ACA). -
ALDOR Encourages Taxpayers to Safely File Electronically
During this time of uncertainty, and following guidance from federal and state officials, the Alabama Department of Revenue (ALDOR) continues to encourage all taxpayers to conduct their business with ALDOR through their online services. -
Tax Court strikes down 4 more abusive syndicated conservation easement transactions; IRS calls on taxpayers to accept settlement offers in syndicated conservation easement cases
On July 9, the U.S. Tax Court struck down four more abusive syndicated conservation easement transactions. The Internal Revenue Service calls on any taxpayer involved in syndicated conservation easement transactions who receives a settlement offer from the agency to accept it soon. -
IRS provides last-minute tips for last-minute filers
With the July 15 tax-filing deadline − postponed from April 15 – only a few days away, the IRS is reminding taxpayers who have yet to file their tax returns that IRS.gov has tools and services to help them meet their tax obligations. -
IRS says a Paycheck Checkup helps avoid tax surprises
The Internal Revenue Service is reminding taxpayers that using the IRS Tax Withholding Estimator to do a Paycheck Checkup can help them have the right amount of tax withheld and avoid surprises when filing next year. -
IRS gives tips on filing, paying electronically and checking refunds online; 2019 tax returns and payments due July 15
The Internal Revenue Service today reminded taxpayers with a filing requirement to file an accurate tax return on time even if a balance due can't be paid in full. -
J5 reflects on two-years pursuing global tax cheats
Leaders from five international tax organizations are marking the two-year anniversary of the formation of the Joint Chiefs of Global Tax Enforcement (J5) this week. -
Taxpayers should file on time even if they can’t pay their full tax bill
Taxpayers should file their tax return by the deadline even if they cannot pay the full amount due -
IRS.gov has answers about filing, paying and July 15 due date
As the July due date for filing a tax return draws closer, the Internal Revenue Service reminds taxpayers about the many resources available on IRS.gov. -
IRA contributions made by July 15 count as 2019 tax deduction
The Internal Revenue Service today reminded people that contributions to traditional Individual Retirement Arrangements (IRAs) made by the postponed tax return due date of July 15, 2020, are deductible on a 2019 tax return. -
IRS finalizes guidance on deduction for foreign-derived intangible income and global intangible low-taxed income
The Internal Revenue Service issued final regulations that provide guidance on deductions for foreign-derived intangible income (FDII) and global intangible low-taxed income allowed to domestic corporations under the Internal Revenue Code. -
IRS payment options
Taxpayers have a variety of options to consider when paying federal taxes. This year, in response to the COVID-19 pandemic, the filing deadline and tax payment due date was postponed from April 15 to July 15, 2020. -
Taxpayers need to resume payments by July 15
The IRS today reminds taxpayers who took advantage of the People First Initiative tax relief and did not make previously owed tax payments between March 25 to July 15 that they need to restart their payments. -
IRS resources available in English, Spanish and other languages to help taxpayers still needing to file their 2019 tax returns
As the tax-filing deadline fast approaches, the Internal Revenue Service reminds taxpayers with limited English proficiency and who have yet to file their 2019 tax returns that there are a variety of ways to get help and information in languages other than English. -
RP-2020-37: Tables of limitations on depreciation deductions for owners of passenger automobiles
Revenue Procedure 2020-37 provides: (1) tables of limitations on depreciation deductions for owners of passenger automobiles first placed in service by the taxpayer during calendar year 2020; and (2) a table of amounts that must be included in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2020. -
Treasury, IRS issue guidance on reporting qualified sick and family leave wages paid
The Treasury Department and the Internal Revenue Service today provided guidance in Notice 2020-54 (PDF) to employers requiring them to report the amount of qualified sick and family leave wages paid to employees under the Families First Coronavirus Response Act (FFCRA) on Form W-2. -
N-2020-54: Guidance on Reporting Qualified Sick Leave Wages and Qualified Family Leave Wages Paid Pursuant to the Families First Coronavirus Response Act
Notice 2020-54 provides guidance to employers on the requirement to report the amount of qualified sick leave wages and qualified family leave wages paid to employees under the Families First Coronavirus Response. -
IRS reminds members of the U.S. Armed Forces of special tax breaks, helpful resources as the July 15 tax deadline approaches
The Internal Revenue Service today encouraged members of the military and their families to learn more about the special tax benefits available to them as the July 15 tax filing season deadline approaches. -
The postponed federal tax deadline applies to taxpayers living overseas
Taxpayers who live and work abroad have until Wednesday, July 15, 2020 to file and pay their 2019 federal income taxes. U.S. citizens and resident aliens generally have the same filing and payment requirements regardless of where they live. The July 15 postponed deadline also applies to nonresident aliens and foreign entities with a U.S. filing and payment requirement. -
Reminder to tax-exempt organizations: 990s, other forms due July 15; e-file best way to file
The Internal Revenue Service today reminds tax-exempt organizations that certain forms they file with the IRS are due on July 15, 2020. For organizations that operate on a calendar-year basis, this includes the 2019 Form 990 they would have normally filed on May 15. -
How to report non-employee compensation and backup withholding
There is a new Form 1099-NEC, Nonemployee Compensation for business taxpayers who pay or receive nonemployee compensation. Starting in tax year 2020, payers must complete this form to report any payment of $600 or more to a payee. -
Treasury Department and IRS issue guidance for consolidated groups regarding net operating losses
The Department of the Treasury and the Internal Revenue Service issued proposed regulations and temporary regulations that provide guidance for consolidated groups regarding net operating losses (NOLs). -
Deadline for estimated tax payments postponed until Wednesday, July 15
As part of its response to COVID-19, the IRS has postponed several tax deadlines until Wednesday, July 15, 2020. These postponements generally apply to all taxpayers with a filing or payment deadline between April 1 and July 15, 2020. -
IRS unclaimed refunds of $1.5 billion waiting for tax year 2016; taxpayers face July 15 deadline
Unclaimed income tax refunds worth more than $1.5 billion await an estimated 1.4 million individual taxpayers who did not file a 2016 federal income tax return, according to the Internal Revenue Service. -
Senate approves 5-week PPP extension
The U.S. Senate passed by unanimous consent a five-week extension of the Paycheck Protection Program (PPP) on Tuesday night just a few hours before the application window on the program was scheduled to close. -
House joins Senate in approving 5-week PPP extension
The U.S. House of Representatives on Wednesday joined the Senate in passing by unanimous consent a five-week extension of the Paycheck Protection Program (PPP). -
IRS offers additional retail partners that accept cash payments for federal taxes
The Internal Revenue Service today announced additional retail partners are accepting cash payments for federal taxes. This cash payment option is for individual and business taxpayers. -
Taxpayers can get last minute filing tips on IRS.gov
The July deadline for filing a 2019 tax return is near, but IRS tax help is available 24 hours a day on IRS.gov. Whether filing a tax return, requesting an extension or making a payment, the IRS website can help taxpayers answer most questions and avoid long waits for phone assistance. -
Notice 2020-53, Low Income Housing Tax Credit
Notice 2020-53 provides temporary relief from certain requirements under § 42 of the Internal Revenue Code (Code) for qualified low-income housing projects. -
IRS provides tax relief for the low-income housing credit and bonds for qualified residential rental projects
In response to the ongoing COVID-19 pandemic, the Internal Revenue Service today issued Notice 2020-53 (PDF) to provide tax relief to issuers, operators, owners, and tenants of qualified low-income housing projects or qualified residential rental projects financed with exempt facility bonds, and state agencies that have jurisdiction over these projects. -
REG-123027-19, proposed regs, Low Income Housing Credit
The Internal Revenue Service is issuing proposed regulations, REG-123027-19 relating to the compliance-monitoring duties of state agencies for purposes of the low-income housing credit. -
Notice 2020-52, requirements for mid-year amendment to a safe harbor 401(k) or 401(m)
Notice 2020-52 clarifies the requirements that apply to a mid-year amendment to a safe harbor 401(k) or 401(m) plan that reduces only contributions made on behalf of highly compensated employees. -
Here are reasons people should file a 2019 tax return; Economic Impact Payment, tax credits available for some
While many people are required to file a tax return, it's a good idea for everyone to determine if they should file. Some people with low income are not required to file but will need to do so to get a tax refund. -
PPP: Client forgiveness services Q&As for CPAs
The Paycheck Protection Program (PPP), created by the U.S. government to provide relief to small businesses and some other entities during the coronavirus pandemic, has been unique in the combination of urgency and uncertainty it has presented to CPAs and their clients -
Additional signature requirement for Reporting Agents who sign/submit Forms 7200 on behalf of clients
There is a new requirement for Reporting Agents (RAs) who sign and submit Form 7200, Advance Payment of Employer Credits Due to COVID-19. -
PPP lender accounting issues addressed by new TQAs
Lender accounting issues related to the Paycheck Protection Program (PPP) are discussed in new Technical Questions and Answers (TQAs) issued Tuesday by the AICPA. -
Taxpayers should file by July 15 tax deadline; automatic extension to Oct. 15 available
IRS has easy ways to help taxpayers who need more time or payment options -
National Taxpayer Advocate Erin Collins delivers her first report to Congress; Identifies COVID-19 challenges, CARES Act, and Taxpayer First Act implementation as priority issues for taxpayers
National Taxpayer Advocate Erin M. Collins today released her first report to Congress, identifying taxpayer challenges arising from the COVID-19 pandemic, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and the IRS's implementation of the Taxpayer First Act as priority issues the Taxpayer Advocate Service (TAS) plans to focus on in the coming year. -
IRS releases new Data Book with redesigned, expanded format to provide more detailed view of service, compliance activities in FY 2019
The Internal Revenue Service today unveiled the 2019 IRS Data Book, featuring a redesigned format that provides a different and expanded look at IRS accomplishments during the past year. -
Low-Income Taxpayer Clinic List
If you are a low-income taxpayer who needs help resolving a tax dispute with the IRS and can’t afford representation, you may qualify for free or low-cost help from a Low Income Taxpayer Clinic. -
IRS offers settlement for syndicated conservation easements; letters being mailed to certain taxpayers with pending litigation
The Internal Revenue Service Office of Chief Counsel announced today a time-limited settlement offer to certain taxpayers with pending docketed Tax Court cases involving syndicated conservation easement transactions. Taxpayers eligible for this offer will be notified by letter with the applicable terms. -
Don’t forget, Social Security benefits may be taxable
Taxpayers receiving Social Security benefits may have to pay federal income tax on a portion of those benefits. -
IRS finalizes guidance for the section 199A deduction for shareholders of Regulated Investment Companies
The Internal Revenue Service today issued final regulations permitting a regulated investment company (RIC) that receives qualified real estate investment trust (REIT) dividends to report dividends the RIC pays to its shareholders as section 199A dividends. -
Gig economy tips taxpayers should remember
The gig economy, also called sharing or access economy, is activity where taxpayers earn income providing on-demand work, services or goods. Often, it's through a digital platform like an app or website. While there are many types of sharing economy businesses, ride-sharing and home rentals are two of the most popular. -
Electronic Tax Administration Advisory Committee releases annual report to Congress
The Electronic Tax Administration Advisory Committee (ETAAC) today released its annual report to Congress, featuring recommendations that focus on the prevention of identity theft and refund fraud. -
Keep Economic Impact Payment notice with other tax records
People who receive an Economic Impact Payment this year should keep Notice 1444, Your Economic Impact Payment, with their tax records. This notice provides information about the amount of their payment, how the payment was made and how to report any payment that wasn’t received. -
IRS extends July 15, other upcoming deadlines for tornado victims in parts of the South; Provides other relief
Victims of the April tornadoes, severe storms and flooding that took place in parts of Mississippi, Tennessee and South Carolina will have until October 15, 2020, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today. -
N-2020-48: Relief for Taxpayers Affected by Ongoing Coronavirus Disease Pandemic, Related to Sport Fishing Equipment and Bows and Arrows Excise Tax Filing and Payment Deadlines
Notice 2020-48 provides expanded disaster relief, in the form of postponing until October 31, 2020, certain Federal excise tax filing and payment deadlines, and associated interest, penalties, and additions to tax, for taxpayers who owe a federal excise tax for sales of sport fishing or archery equipment for the second quarter of 2020. -
IRS announces rollover relief for required minimum distributions from retirement accounts that were waived under the CARES Act
The Internal Revenue Service announced that anyone who already took a required minimum distribution (RMD) in 2020 from certain retirement accounts now has the opportunity to roll those funds back into a retirement account following the CARES Act RMD waiver for 2020. -
N-2020-51: Guidance on Waiver of 2020 Required Minimum Distributions
Notice 2020-51 provides guidance relating to the waiver in 2020 of required minimum distributions (RMDs) from certain retirement plans and IRAs due to the amendment of § 401(a)(9) of the Internal Revenue Code by section 2203 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136. -
IRS issues guidance on the elimination of the deduction of qualified transportation fringe benefit expenses
The Internal Revenue Service today issued proposed regulations that provide guidance for the deduction of qualified transportation fringe and commuting expenses. -
Relief for taxpayers affected by COVID-19 who take distributions or loans from retirement plans
The Internal Revenue Service today released Notice 2020-50 (PDF) to help retirement plan participants affected by the COVID-19 coronavirus take advantage of the CARES Act provisions providing enhanced access to plan distributions and plan loans. -
N-2020-50: Guidance for Coronavirus-Related Distributions and Loans from Retirement Plans Under the CARES Act
Notice 2020-50 provides guidance relating to the application of section 2202 of the CARES Act for qualified individuals and eligible retirement plans. -
Returning an Economic Impact Payment
Millions of eligible individuals have already received their Economic Impact Payments. Some people, including those who received a payment for a deceased individual, may be unsure whether they should return a payment. -
Taxpayers should be aware of myths about tax refunds
Now that many taxpayers have filed their federal tax returns electronically and the IRS is back to processing paper tax returns sent by mail, they're eager for details about their refund. When it comes to refunds, there are several common myths. -
IRS outlines changes to health care spending available under CARES Act
The Internal Revenue Service has advised that new rules under the CARES Act provide flexibility for health care spending that may be helpful in the current environment where more people may need at-home services due to measures to fight the coronavirus. -
New PPP loan forgiveness applications released
The U.S. Small Business Administration (SBA), in consultation with Treasury, released Wednesday a revised loan forgiveness application for the Paycheck Protection Program (PPP). -
An extension to file is not an extension to pay taxes
For most taxpayers the filing and payment deadline was postponed July 15. Those who need more time to file beyond the postponed date, can request an extension to file. Taxpayers must request an extension to file by July 15. -
IRS alert: Economic Impact Payments belong to recipient, not nursing homes or care facilities
The Internal Revenue Service today alerted nursing home and other care facilities that Economic Impact Payments (EIPs) generally belong to the recipients, not the organizations providing the care. -
Technical New Form 1040 Series Business Rules and Schemas are Available
New Form 1040 Series Business Rules and Schemas are available. -
Technical New MeF Business Returns Schemas and Business Rules are Available
New MeF Business Returns Schemas and Business Rules are available. -
Attn: Tax Practitioners - Update on Reporting Agent Authorizations
Update on Reporting Agent Authorizations -
N-2020-45: June interest rate
Notice 2020-45 provides guidance on the corporate bond monthly yield curve, the corresponding spot segment rates used under § 417(e)(3), and the 24-month average segment rates under § 430(h)(2) of the Internal Revenue Code. -
N-2020-46: Treatment of Amounts Paid to Section 170(c) Organizations under Employer Leave-Based Donation Programs to Aid Victims of the Coronavirus Disease (COVID-19) Pandemic
Notice 2020-46 provides guidance under the Internal Revenue Code on the federal income and employment tax treatment of cash payments made by employers under leave-based donation programs to aid victims of the ongoing Coronavirus Disease 2019 (COVID-19) pandemic as described in the notice. -
PPP provides a lifeline, but more may be needed
With new guidance and extensions on use of funds, US businesses seek and find financial boosts in overall uncertain times. -
Treasury, IRS provide tax relief to investors and businesses affected by COVID-19 in new markets tax credit transactions
The Treasury Department and the Internal Revenue Service today provided tax relief for certain taxpayers affected by the COVID-19 pandemic involved in new markets tax credit transactions. -
Notice 2020-49 tax relief, deadlines, new markets tax credit
Notice 2020-49 postpones to December 31, 2020, the due dates for making investments, making reinvestments, and expending amounts for construction of real property under § 45D of the Internal Revenue Code (Code) due to be performed or expended on or after April 1, 2020, and before December 31, 2020. -
Proposed changes to group exemption letter program, UBTI ‘silo’ rules and more
The EO Update is a periodic newsletter with information for tax-exempt organizations and tax practitioners who represent them, from Exempt Organizations (Tax-Exempt and Government Entities Division) at the IRS. -
Taxpayers will soon be able to file amended tax returns electronically
Later this summer, for the first time taxpayers will be able to file their Form 1040-X, Amended U.S Individual Income Tax Return electronically. -
IRS reminder: File now, choose direct deposit or schedule tax payments electronically before the July 15 deadline
As the July 15 tax-filing deadline − postponed from April 15 − draws near, the Internal Revenue Service is reminding all taxpayers who have yet to file their 2019 federal tax return to file electronically now, choose direct deposit for their refund, or pay any tax owed electronically. -
IRS provides guidance on employer leave-based donation programs that aid victims of the COVID-19 pandemic
The Internal Revenue Service today provided guidance for employers whose employees forgo sick, vacation or personal leave because of the COVID-19 pandemic. -
Here’s who qualifies a taxpayer for the child and dependent care credit
Childcare or adult dependent care can be a major expense. Fortunately, the child and dependent care credit can provide some relief. Taxpayers who pay for daycare expenses may be eligible to claim up to 35% of what they spend; limits apply. -
Who qualifies for which new employer tax credit?
Many businesses affected by COVID-19 qualify for tax relief though credits or deferrals. Here's a breakdown of which employers qualify for these new tax credits and the deferral of employment tax deposits and payments through December 31, 2020. -
IRS reminder: Deadline postponed to July 15 for those who pay estimated taxes
The Internal Revenue Service reminds taxpayers that estimated tax payments for tax year 2020, originally due April 15 and June 15, are now due July 15. This means that any individual or corporation that has a quarterly estimated tax payment due has until July 15 to make that payment without penalty. -
IRS warns against COVID-19 fraud; other financial schemes
The Internal Revenue Service today reminded taxpayers to guard against tax fraud and other related financial scams related to COVID-19. -
N-2020-44: Adjusted Applicable Dollar Amount for Fee Imposed by §§ 4375 and 4376
Notice 2020-44 provides that the adjusted applicable dollar amount that applies for determining the PCORTF fee for policy years and plan years ending on or after October 1, 2019 and before October 1, 2020 is equal to $2.54. -
Proposed regulations address direct primary care arrangements and health care sharing ministry memberships
The Internal Revenue Service today released proposed regulations addressing the treatment of certain medical care arrangements under section 213 of the Internal Revenue Code. -
Interest Rates Decrease for the Third Quarter of 2020
The Internal Revenue Service today announced that interest rates will decrease for the calendar quarter beginning July 1, 2020. -
IRS provides answers about Coronavirus related tax relief for Qualified Opportunity Funds and investors
The Internal Revenue Service today provided guidance for Qualified Opportunity Funds (QOFs) and their investors in response to the ongoing Coronavirus Disease 2019 (COVID-19) pandemic. -
N-2020-43: Tax Capital Reporting - Notice Requesting Comments
Notice 2020-43 to seek public comment on a proposed requirement for partnerships to use only one of two alternative methods to satisfy the Tax Capital Reporting Requirement with respect to partnership taxable years that end on or after December 31, 2020. -
Future-proofing the tax system with small businesses in mind
Life has quickly changed because of the COVID-19 pandemic. The responses from Congress, the Department of Treasury, IRS and Federal Reserve have been wide ranging. -
Many multilingual resources are available on IRS.gov
To reach as many people as possible, the IRS translates tax information into multiple languages. To get information in one of these languages, taxpayers can click on the language drop down tab at the top of every IRS.gov page. -
Answers to tax questions are just a few clicks away on IRS.gov
There are many easy-to-use tools on available on IRS.gov. Even better, they are available 24 hours a day. These tools help people file and pay taxes, find information about their account and get answers to tax questions. -
New Form 1040 Series Schemas and Business Rules are Available
Software Developers and State organizations may access and download schemas and business rules from their e-Services mailbox. -
IRS provides relief to retirement plan participants to sign elections remotely
The Internal Revenue Service today provided temporary administrative relief to help certain retirement plan participants or beneficiaries who need to make participant elections by allowing flexibility for remote signatures. -
Temporary Relief from the Physical Presence Requirement for Spousal Consents Under Qualified Retirement Plans
Notice 2020-42 provides participants, beneficiaries, and administrators of qualified retirement plans and other tax-favored retirement arrangements with temporary relief from the physical presence requirement. -
159 million Economic Impact Payments processed; Non-filers can quickly register for payment with IRS Non-Filers tool
With 159 million Economic Impact Payments processed, the Internal Revenue Service reminds many low-income Americans who don't usually file tax returns to register for a payment by October 15. -
IRS reminder: June 15 tax deadline postponed to July 15 for taxpayers who live and work abroad
The Internal Revenue Service today reminded people who live and work abroad that they have until Wednesday, July 15, 2020, to file their 2019 federal income tax return and pay any tax due. The usual deadline is June 15. -
IRS Updates the FATCA Registration System
The IRS has updated the Foreign Account Tax Compliance Act (FATCA) Registration System to include the following updates for sponsoring entities. -
Announcement 2020-7, opinion letters, pre-approved defined contribution plans
Announcement 2020-7 states that 1) the IRS plans to issue opinion letters with regard to the third six-year remedial amendment cycle for pre-approved defined contribution plans by June 30, 2020 or soon thereafter. -
Treasury, IRS provide regulations to help businesses claim credits for carbon capture
The Treasury Department and the Internal Revenue Service today issued proposed regulations (PDF) to help businesses understand how legislation passed in 2018 may benefit those claiming carbon capture credits. -
Employers can grant paid leave for COVID-19
Under the Families First Coronavirus Response Act, employers can grant paid leave for an employee to take care of their health needs related to COVID -19 or to care for their family members. This relief helps ensure employees are not forced to choose between being paid or staying home to care for themselves, a child or other family member. -
IRS announces Form 1040-X electronic filing options coming this summer; major milestone reached for electronic returns
The Internal Revenue Service announced today that later this summer taxpayers will for the first time be able to file their Form 1040-X, Amended U.S Individual Income Tax Return, electronically using available tax software products. -
Additional Administrative Relief with Respect to Deadlines Applicable to Employment Taxes, Employee Benefits, and Exempt Organizations Affected by the Ongoing Coronavirus Disease 2019 Pandemic
Notice 2020-35 postpones deadlines for certain specified time-sensitive actions with respect to certain employment taxes, employee benefit plans, exempt organizations, and Coverdell education savings accounts on account of the ongoing COVID-19 pandemic. -
Economic Impact Payment FAQs updated on IRS.gov
Many people have already received their Economic Impact Payment, and many more will be getting them soon. Whether it's already there or on the way, the payment brings questions from many people. Anyone who has questions can visit IRS.gov for updated FAQs about the Economic Impact Payment. -
IRS provides guidance on income tax withholding on certain periodic retirement and annuity payments
The U.S. Department of the Treasury and the Internal Revenue Service today issued a proposed regulation updating the federal income tax withholding rules for periodic retirement and annuity payments made after December 31, 2020. -
Economic Impact Payments being sent by prepaid debit cards, arrive in plain envelope; IRS.gov answers frequently asked questions
As Economic Impact Payments continue to be successfully delivered, the Internal Revenue Service today reminds taxpayers that some payments are being sent by prepaid debit card. The debit cards arrive in a plain envelope from "Money Network Cardholder Services." -
Treasury, IRS provide safe harbor for taxpayers that develop renewable energy projects
The Treasury Department and the Internal Revenue Service today is providing relief for taxpayers developing renewable energy projects and producing electricity from sources such as wind, biomass, geothermal, landfill gas, trash, and hydropower. Safe harbor is also available for taxpayers using technologies such as solar panels, fuel cells, microturbines, and combined heat and power systems. -
Beginning of Construction for Sections 45 and 48; Extension of Continuity Safe Harbor to Address Delays Related to COVID-19
Notice 2020-41 clarifies and modifies the guidance provided in prior IRS notices regarding the beginning of construction for sections 45 and 48. Specifically, the notice extends the Continuity Safe Harbor for both the production tax credit for renewable energy facilities under section 45 and the investment tax credit for energy property under § 48 for projects that began construction in either calendar years 2016 or 2017. -
Millions of people will get their Economic Impact Payment by prepaid debit card
Nearly four million people are being sent their Economic Impact Payment by prepaid debit card, instead of paper check. The determination of which taxpayers receive a debit card was made by the Bureau of the Fiscal Service, another part of the Treasury Department that works with the IRS to handle distribution of the payments. -
Treasury, IRS issue final regulations providing relief for certain tax-exempt organizations
The Department of the Treasury and the Internal Revenue Service today issued final regulations clarifying the reporting requirements generally applicable to tax-exempt organizations. -
IRS.gov helps taxpayers get tax information they need; find tools for filing, paying, checking accounts and answering questions
The Internal Revenue Service reminds taxpayers today about several online tools available to help them get the tax information they need as the IRS has limited operations due to the coronavirus. -
IRS Nationwide Tax Forums go virtual in 2020
The Internal Revenue Service today announced the 2020 IRS Nationwide Tax Forums will be held virtually in 2020 with a series of live-streamed webinars beginning this July. -
Here’s why some people’s Economic Impact Payment is different than expected
As people across the country receive their Economic Impact Payments, some might receive a different amount than they expected. -
RP-2020-32: 2021 inflation adjustment for Health Savings Accounts
Revenue Procedure 2020-32 provides the 2021 inflation adjusted amounts for Health Savings Accounts as determined under § 223 of the Internal Revenue Code. Revenue Procedure 2020-32 will be in IRB: 2020-24, dated June 8, 2020. -
PPP loan forgiveness calculator available; AICPA continues to push for more guidance
The AICPA’s revised PPP Loan Forgiveness calculator is now available. -
Employee retention credit available for businesses affected by COVID-19
The employee retention credit is designed to encourage businesses to keep employees on their payroll. The amount of the credit is 50% of qualified wages paid up to an annual limit of $10,000, which equals a maximum credit amount of $5,000 for each employee for the year. -
Announcement related to income tax treaty references to the NAFTA in light of its pending replacement by the USMCA
Announcement 2020-06 provides the Treasury Department and IRS view on how to interpret references in U.S. income tax treaties to the North American Free Trade Agreement (NAFTA) once it is replaced by the Agreement between the United States Canada and Mexico (the USMCA). -
New credits fund employers for Coronavirus-related paid leave
The Families First Coronavirus Response Act provides tax credits to reimburse employers for the costs of providing paid sick leave and paid family and medical leave to employees unable to work because of the coronavirus (COVID-19). These credits are refundable. That means if the amount of the credit exceeds the amount of tax owed, the remainder is refunded to the business or organization. -
IRS adds phone operators to answer Economic Impact Payment questions
Today, May 18, 2020, the Internal Revenue Service is starting to add 3,500 telephone representatives to answer some of the most common questions about Economic Impact Payments. -
SBA allows increased PPP loans to partnerships, extends safe harbor to May 18
The U.S. Small Business Administration (SBA) issued a new interim final rule Wednesday night opening the door for lenders to increase existing Paycheck Protection Program (PPP) loans to partnerships and seasonal employers. In separate guidance, the SBA extended the safe harbor for returning PPP loans from May 14 to May 18. -
IRS provides tax relief through increased flexibility for taxpayers in section 125 cafeteria plans
The Internal Revenue Service today released guidance to allow temporary changes to section 125 cafeteria plans. These changes extend the claims period for health flexible spending arrangements (FSAs) and dependent care assistance programs and allow taxpayers to make mid-year changes. -
IRS People First Initiative provides relief to taxpayers facing COVID-19 issues
Due to COVID-19, the IRS' People First Initiative provides relief to taxpayers on a variety of issues from easing payment guidelines to delaying compliance actions. This relief is effective through the filing and payment deadline, Wednesday, July 15, 2020. -
What people really want to know about Economic Impact Payments
IRS.gov has answers to many questions people may have about their Economic Impact Payment. Here are answers to some of the top questions people are asking about these payments. -
IRS provides guidance on the deductibility and reporting of certain amounts paid to, or at the direction of, governments
The Internal Revenue Service today issued proposed regulations under the Tax Cuts and Jobs Act (TCJA) that provide guidance to taxpayers and governments with respect to fines, penalties and certain other amounts. -
Treasury, IRS release latest state-by-state Economic Impact Payment figures
The Treasury Department and the Internal Revenue Service today released updated state-by-state figures for Economic Impact Payments, with approximately 130 million individuals receiving payments worth more than $200 billion in the program's first four weeks. -
Taxpayers have until July 15 to file and pay their taxes
The federal income tax filing deadline has been extended to July 15. Taxpayers also have until July 15 to make any federal income tax payments that were originally due on April 15, without penalties and interest, regardless of the amount they owe. This extension applies to all taxpayers. -
AICPA supports bill that would make PPP-funded expenses deductible
Legislation introduced in the Senate on Tuesday would overrule an IRS notice and clarify that ordinary expenses funded by Paycheck Protection Program (PPP) loans are deductible by taxpayers. The bill, the Small Business Expenses Protection Act of 2020, S. 3612, is currently in the Senate Finance Committee and is supported by the AICPA. -
IRS: Coronavirus-related relief for retirement plans and IRAs questions and answers
Section 2202 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted on March 27, 2020, provides for special distribution options and rollover rules for retirement plans and IRAs and expands permissible loans from certain retirement plans. -
Notice 2020-32: Deductibility of expenses when loan is forgiven under Paycheck Protection Program (COVID-19)
The IRS released an advance version of Notice 2020-32 providing guidance regarding the deductibility for federal income tax purposes of certain otherwise deductible expenses incurred in a taxpayer’s trade or business when the taxpayer receives a loan (covered loan) pursuant to the Paycheck Protection Program (PPP) -
Tools to help people get their Economic Impact Payment
The IRS has two tools to help millions of taxpayers with their Economic Impact Payment. The payments are $1,200 per eligible person and up to $500 for each qualifying child. -
Common errors to avoid when filing for advance payment of employer credits
Employers who are filing Form 7200, Advance Payment of Employer Credits Due to COVID-19 should read the instructions carefully and take their time when completing this form to avoid mistakes. -
Special alert for benefit recipients who don't file a tax return and have dependents
The Internal Revenue Service today issued a special alert for several groups of federal benefit recipients to act by this Wednesday, April 22, if they didn't file a tax return in 2018 or 2019 and have dependents so they can quickly receive the full amount of their Economic Impact Payment. -
Treasury, IRS announce cross-border tax guidance related to travel disruptions arising from the COVID-19 emergency
The Treasury Department and the Internal Revenue Service today issued guidance that provides relief to individuals and businesses affected by travel disruptions arising from the COVID-19 emergency. -
Special rules applicable to credit against income tax for foreign taxes
IRS Guidewire - RR-2020-08: Special rules applicable to credit against income tax for foreign taxes -
Treasury, IRS unveil online application to help with Economic Impact Payments
Working with the Treasury Department, the Internal Revenue Service today unveiled the new Get My Payment with features to let taxpayers check on their Economic Impact Payment date and update direct deposit information. -
Temporary procedures to fax certain Forms 1139 and 1045 due to COVID-19
In response to the COVID-19 Pandemic and solely to implement the following provisions of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), until further notice, the IRS is implementing the temporary procedures described below for digital transmission of Form 1139 and Form 1045. -
Temporary Suspension of Alabama Terminal Excise Tax Requirements
Commissioner Barnett ordered the temporary suspension of the motor fuel exporter, importer, and transporter licensing requirements associated with the Alabama Terminal Excise Tax for exporters, importers, or transporters supporting disaster relief efforts by engaging in the export of motor fuel from Alabama to areas in other states impacted by severe weather. -
20 Tax Filing FAQs
Based on member feedback, the AICPA identified seven key areas in need of immediate relief and provided the latest developments to the 20 most frequently asked questions on tax filing and payment relief. -
Follow IRS on Social Media & Subscribe to IRS Newsroom for Urgent COVID-19 Updates
The Internal Revenue Service reminded taxpayers, businesses, tax professionals and others to follow the agency's official social media accounts and email subscription lists to get urgent information on COVID-19 and economic impact payments. These platforms provide the latest alerts and information on various tax topics to include emerging scams. -
Social Security recipients who don’t usually file tax returns will automatically get $1,200 payments, Treasury says in reversal
The Treasury announced late Wednesday that Social Security beneficiaries who typically do not file a tax return will automatically get the $1,200 payment. -
Employee Retention Credit for businesses impacted by COVID-19
The Treasury Department and the Internal Revenue Service today launched the Employee Retention Credit, designed to encourage businesses to keep employees on their payroll. -
Update to Notice 2020-18 from the IRS: Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic, Related to Gift & Generation-Skipping Transfer Tax Filing & Payment Deadlines
The Secretary of the Treasury has determined that any person (as defined in section 7701(a)(1) of the Code) with a Federal gift tax or generation-skipping transfer tax payment due or the requirement to file Form 709 (United States Gift and Generation-Skipping Transfer Tax Return) on April 15, 2020, is also affected by the COVID-19 emergency for purposes of the relief described in this section III (Affected Taxpayer). -
AICPA Requests Accounting Deemed as Essential Business
The AICPA sent a letter to ask Treasury Secretary Mnuchin to deem public accounting as an “essential service” by the federal government, similar to what many state governors have already done for shelter-in-place orders. -
CARES Act tax provisions aim to stabilize pandemic-ravaged economy
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, H.R. 748, which passed the Senate by a 96-0 vote late on Wednesday, contains a host of tax measures as part of a $2 trillion aid package designed to help the economy as it suffers from the effects of the coronavirus pandemic. While the focus of the legislation is not tax, a large number of tax provisions are included in the over-600-page bill. -
Families First Act Guidance from DOL
The U.S. Department of Labor released its first round of guidance on the Families First Act. -
IRS unveils new People First Initiative; COVID-19 effort temporarily adjusts, suspends key compliance program
To help people facing the challenges of COVID-19 issues, the Internal Revenue Service announced today a sweeping series of steps to assist taxpayers by providing relief on a variety of issues ranging from easing payment guidelines to postponing compliance actions. -
IRS Online FAQ Posted
The IRS posted answers to frequently asked questions related to the relief provided in the Notice. These questions and answers will be updated periodically and are designed to be a flexible tool to communicate information to taxpayers and tax professionals in this changing environment. -
Update on Federal and State Tax Responses to COVID-19 Pandemic
Update on Federal and State Tax Responses to COVID-19 Pandemic - Federal Tax Alert from Bradley Law -
Encourage Others to Complete the U.S. Census
The 2020 Census is happening now. You can respond online, by phone, or by mail. -
ALEA Modifies Driver License Division Operations in Response to COVID-19
The Alabama Law Enforcement Agency is modifying its Driver License Division’s statewide operations in response to the Coronavirus (COVID-19). -
Governor Ivey Delays State Tax Filings
Governor Kay Ivey and the Alabama Department of Revenue announced today that the state income tax filing due date is extended from April 15, 2020, to July 15, 2020. -
Governor Ivey Issues Order to Authorize Commissioner to Postpone Tax Payments
On March 23, 2020, Governor Ivey issued an emergency order (Order) pursuant to § 31-9-6(11), Code of Alabama 1975, delegating to the Commissioner of Revenue the authority to postpone the April 15, 2020, due date for the payment of the following state taxes until July 15, 2020, for any person affected by the COVID-19 pandemic: Individual Income Tax, Corporate Income Tax, Financial Institution Excise Tax, and Business Privilege Tax. -
Tax Relief Offered by States and Localities in Response to COVID-19
Tax relief provided by state and local tax and revenue departments in response to the novel coronavirus (COVID-19) is discussed. -
IRS plan to implement Coronavirus-related paid leave for workers and tax credits for small & midsize businesses to swiftly recover
The U.S. Treasury Department, Internal Revenue Service (IRS), and the U.S. Department of Labor (Labor) announced that small and midsize employers can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing Coronavirus-related leave to their employees. -
Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic
Federal income tax filing and payment relief on account of Coronavirus Disease 2019 (COVID-19) emergency. -
Treasury Secretary Mnuchin Announces the IRS will Extend the Tax Filing Deadline
At 9AM this morning, U.S. Treasury Secretary Mnuchin announced that the Trump administration with extend the IRS tax filing deadline three months from April 15, 2020 to July 15, 2020. -
Call to Action for Clarity, Guidance, & to Extend the Filing Deadline
We are calling on the Department of the Treasury to immediately give taxpayers an extension of the April 15th filing deadline — and we need your help. -
IRS Guidewire: Relief for Taxpayers Affected by Ongoing Coronavirus Disease 2019 Pandemic
Payment relief on account of Coronavirus Disease 2019 (COVID-19) emergency. The Treasury Department and IRS are extending the due date for Federal income tax payments due April 15, 2020, to July 15, 2020, for payments due of up to $10 million for corporations and up to $1 million for individuals - regardless of filing status – and other unincorporated entities. Associated interest, additions to tax, and penalties for late payment will also be suspended until July 15, 2020. -
Payment Deadline Extended to July 15th
In a press conference on Tuesday, Treasury Secretary Steven Mnuchin announced that individuals and corporations can delay their tax payments for 90 days due to the coronavirus pandemic. Individuals can defer up to $1 million in payments for 90 days from the April 15 deadline. Corporations can defer up to $10 million in payments for 90 days. During that time, the IRS will not charge interest or penalties. -
Here are some reasons taxpayers should e-file their taxes
Some taxpayers still use the old-school method of filing their tax returns: on paper. For these people, now is the time to switch and file electronically. -
Newly-revised IRS publication explains tax benefits for members of the millitary
The Internal Revenue Service has released its newly-revised tax guide, designed to help members of the military understand the many special tax benefits available to them under the law. -
IRS Birmingham Office Relocating & IRS News Releases
The IRS Birmingham Office has been relocated to downtown Birmingham at 417-20th St N, Birmingham, AL 35203 in the old Region’s Building. -
IRS outlines new tax law effect on tax exempt organizations
The Internal Revenue Service wants tax-exempt organizations to know about recent tax law changes that might affect them. The Taxpayer Certainty and Disaster Tax Relief Act, passed on December 20, 2019, includes several provisions that may apply to tax-exempt organizations' current and previous tax years. -
Members of the military can take advantage of special offers to file taxes for free
Active duty military personnel have multiple options for free federal tax preparation. IRS Free File allows taxpayers to prepare and file their federal individual income tax return for free using brand name tax-preparation-and-filing software. -
Certain Tax Credits are not available in Modernized e-File (MeF)
Attention: Software Developers, Return Transmitters and Authorized IRS e-file Providers/EROs The IRS is in the process of updating the MeF system to allow for the recent extender legislation. The tax forms listed below for Tax Year 2019 will continue to reject if an extender-related credit is claimed. Please refrain from sending these forms with extender-related credits until further notice. -
IRS issues standard mileage rates for 2020
The Internal Revenue Service today issued the 2020 optional standard mileage rates (PDF) used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. -
Here’s what tax preparers need to know about a data security plan
With the tax filing season just weeks away, tax professionals who have a data security plan should review it for updates. Those who don't have a plan should create one and use the information below to get started. Having a written data security plan isn't just a good idea, it's federal law. Identity thieves target tax professionals because of the client data they have on hand. Thieves use stolen data from tax preparers to create fake returns that can be harder for the IRS to detect. -
Is It December Already? Year-End Contribution Strategies for Alabama Taxpayers
As 2019 comes to a close, while most people are busy making holiday plans, dutiful tax advisors and financial planners are burning the midnight oil to minimize their clients’ tax bills that will be due in a few short months. Year-end planning strategies include an evaluation of a taxpayer’s potential federal and state income tax liabilities and opportunities to harvest losses or otherwise lower their 2019 taxable income. -
Jan. 31 filing deadline remains for employer wage statements, independent contractor forms
The Internal Revenue Service today reminded employers and other businesses that wage statements and independent contractor forms still have a January 31 filing deadline. -
IRS Advisory Council issues 2019 Annual Report
The Internal Revenue Service Advisory Council (IRSAC) today issued its annual report for 2019, including recommendations to the IRS on new and continuing issues in tax administration. -
IRS updates guidance for deductible business, charitable, medical and moving expenses
The Internal Revenue Service today issued guidance for taxpayers with certain deductible expenses to reflect changes resulting from the Tax Cuts and Jobs Act (TCJA). -
401(k) contribution limit increases to $19,500 for 2020; catch-up limit rises to $6,500
The Internal Revenue Service today announced that employees in 401(k) plans will be able to contribute up to $19,500 next year. The IRS announced this and other changes in Notice 2019-59 (PDF), posted today on IRS.gov. This guidance provides cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2020. -
Here's basic info for businesses filing excise taxes
Businesses providing goods and services that are subject to excise tax must file a Form 720 quarterly to report the tax to the IRS. -
Taxpayers should be on the lookout for new version of SSN scam
Taxpayers should be on the lookout for new variations of tax-related scams. In the latest twist on a scam related to Social Security numbers, scammers claim to be able to suspend or cancel the victim’s SSN. It’s yet another attempt by con artists to frighten people into returning ‘robocall’ voicemails. -
Comment Letter on Taxable Computer Hardware & Software
Comments on Proposed Amendments to Alabama Administrative Code Rule 810-6-1-.37, Computer Hardware & Software -
End of Tax Season Is Near, and Accountants Are (Almost) Ready
Oct. 15 extended deadline for filing returns is especially challenging this year under new tax law -
The filing deadline for extension filers is almost here
Even though time before the extension deadline is dwindling, there’s still time for taxpayers to file a complete and accurate return. Taxpayers should remember they don’t have to wait until October 15 to file. They can file whenever they are ready. -
Treasury, IRS release final and proposed regulations on new 100% depreciation
The Treasury Department and the Internal Revenue Service today released final regulations (PDF) and additional proposed regulations (PDF) under section 168(k) of the Internal Revenue Code on the new 100% additional first year depreciation deduction that allows businesses to write off most depreciable business assets in the year they are placed in service by the business. -
LLCs Taxed as S Corporations: Traps for the Unwary
Two recent rulings by the Internal Revenue Service should cause Alabama CPAs to seriously consider whether to contact their LLC clients that have elected S status, and to urge clients or friends who are pondering the conversion to think twice or to consider simply forming an S corp. to begin with. -
ADOR Offering Relief to Coprorate Taxpayers Affected by TCJA
The Alabama Department of Revenue is providing relief from late-filing penalties for certain corporate taxpayers who are encountering difficulties meeting October state filing deadlines while trying to also file their federal returns by the October federal deadline. Adding to this challenge is the complexity associated with the continued implementation of the Tax Cuts and Jobs Act. -
Security Summit warns of new IRS impersonation email scam; reminds taxpayers the IRS does not send unsolicited emails
The Internal Revenue Service and its Security Summit partners today warned taxpayers and tax professionals about a new IRS impersonation scam campaign spreading nationally on email. Remember: the IRS does not send unsolicited emails and never emails taxpayers about the status of refunds. -
Deadline Approaching for Online Sellers to Join the SSUT and Receive Amnesty from Previous Year's Tax Liability
The Alabama Department of Revenue encourages eligible online sellers and marketplace facilitators that are subject to a collection requirement to register for the state’s Simplified Sellers Use Tax (SSUT) remittance program by Oct. 1, 2019. Doing so will relieve such sellers from the obligation of certain tax liability for the previous year. -
IRS launches new Tax Withholding Estimator; Redesigned online tool makes it easier to do a paycheck checkup
The Internal Revenue Service today launched the new Tax Withholding Estimator, an expanded, mobile-friendly online tool designed to make it easier for everyone to have the right amount of tax withheld during the year. -
Tax Security 2.0 - A "Taxes-Security-Together" Checklist - Step 1
Using a new “Taxes. Security. Together.” Checklist, the Internal Revenue Service and the Security Summit partners urged tax professionals to review critical security steps to ensure they are fully protecting their computers and email as well as safeguarding sensitive taxpayer data. -
Taxpayers can still get help tax help this summer
Taxpayers who received an extension but haven’t filed or those otherwise unable to file their return by the April deadline should visit IRS.gov if they need help completing and filing their return. These taxpayers must file by October 15. -
Taxpayers can check online to get updates about their tax refund
Taxpayers who filed an extension and are submitting their 2018 tax return this summer might be waiting for their tax refund. It’s easy for these taxpayers to check on the status of their money. They can just zip over to IRS.gov and use “Where’s My Refund?” -
Millennials are changing our tax practices. Here’s how.
Millennials are everywhere. As the largest generation of Americans ever, they seem to be changing every aspect of our society. They’re influencing marketing trends, technological advancements, politics, travel, food — there’s little that isn’t affected by this generation’s unique way of doing things. -
Back-to-School Sales Tax Holiday starts July 19th
Alabama’s 14th annual sales tax holiday for school-related items begins at 12:01 a.m. Friday, July 19, 2019, and ends at midnight Sunday, July 21, 2019, giving shoppers the opportunity to purchase certain school supplies, computers, books and clothing free of the state’s four percent sales or use tax. Cities and counties must notify the state that they will participate in the 2019 holiday by June 21. -
Everyone should check their withholding
It’s important to revisit your tax withholding, especially if major changes from the Tax Cuts and Jobs Act affected the size of your refund this year. Even if you did a Paycheck Checkup last year, you should do it again to account for differences from TCJA or life changes. A Paycheck Checkup can help you see if you’re withholding the right amount of tax from your paycheck. Too little could mean an unexpected tax bill or penalty. -
All taxpayers should check their withholding ASAP
All taxpayers should check their withholding – also known as doing a Paycheck Checkup – as soon as possible. They should do a checkup even if they did one last year. -
IRS takes additional steps to protect taxpayer data
WASHINGTON — As part of its ongoing efforts to protect taxpayers from identity thieves, the Internal Revenue Service today announced it will stop its tax transcript faxing service in June and will amend the Form 4506 series to end third-party mailing of tax returns and transcripts in July. -
IRS, Treasury unveil proposed W-4 design for 2020
WASHINGTON – Today the Internal Revenue Service issued a draft of the 2020 Form W-4, Employee's Withholding Allowance Certificate (PDF), that will make accurate withholding easier for employees starting next year. -
New Rental Tax Bill - City/County Sourcing Rules
A new bill introduced on Tuesday, March 19, may interest your equipment/vehicle/furniture leasing clients. -
Talking to clients about tax extensions
Tax extensions are a hot topic this month (and this year), and we hope this article helps you share some tips with clients. -
Week Two: Governor Ivey Signs Rebuild Alabama Act Into Law
State lawmakers overwhelmingly passed a landmark infrastructure package on Tuesday, and Governor Kay Ivey signed the Rebuild Alabama Act into law within hours. -
Tax Filing Deadlines Extended for Residents in Lee County
The Alabama Department of Revenue is offering tax relief to Alabama taxpayers who have been affected by recent severe storms in Lee County. The tax relief measures mirror IRS measures in the same declared disaster areas. -
How to be a great boss during busy season
Tips to help your employees power through before AND when the going gets tough. -
Every voice is needed now to help the Rebuild Alabama Plan.
Every voice is needed immediately to help resolve the deteriorating conditions of our roads and bridges. -
IRS extends deadlines for Alabama storm victims
Victims of Sunday’s tornadoes and severe storms in Alabama have until July 31, 2019, to file certain individual and business tax returns and make certain tax payments, the Internal Revenue Service announced today. -
Week One: Special Session on Infrastructure Underway
Governor Kay Ivey called the Alabama Legislature into a Special Session focused on transportation infrastructure, and lawmakers which commenced on Wednesday. -
Governor Calls Special Legislative Session on Infrastructure
Last night, Governor Kay Ivey called the Alabama Legislature into a Special Session focused on transportation infrastructure, and lawmakers convened at 9:30 a.m. today. The governor's proclamation specified three issues for consideration. -
Court upholds IRS PTIN fees
The IRS has authority to charge a user fee for preparer taxpayer identification numbers (PTINs) a federal appeals court held on Friday, paving the way for the agency to reinstate the charges for obtaining and renewing a PTIN (Montrois, No. 17-5204 (D.C. Cir. 3/1/19)). -
Waiver of Additional Tax for Individual Farmers and Fishermen
This notice provides a waiver of the addition to tax under section 6654 of the Internal Revenue Code (Code) for underpayment of estimated income tax by qualifying individual farmers and fishermen. -
Forms Update from the Alabama Department of Revenue
The Alabama Department of Revenue will release all software vendors to print forms today, meaning any tax form that remains unapproved will no longer have the watermark or the barcode. -
Meeting between the ASCPA State Tax Committee and Alabama Department of Revenue Over Recent Common Issues
Yesterday, several members of the ASCPA State Tax Committee had the privilege to meet with members of the Alabama Department of Revenue Forms and IT sections to discuss a couple of common issues that have been shared with us over the past two weeks. -
Identity protection PIN program expands
The IRS is expanding to seven additional states its voluntary program for taxpayers who wish to obtain identity protection personal identification numbers (IP PINs) and are not currently victims of tax return identity theft. The pilot program originally involved Washington, D.C., Florida, and Georgia. IP PINs will now be available in seven more states: California, Delaware, Illinois, Maryland, Michigan, Nevada, and Rhode Island. Those states report the highest number of identity thefts to the Federal Trade Commission. -
Alabama Department of Revenue and IDEMIA Advance Identity Protection Program to Fight State Income Tax Theft
Alabama taxpayers enrolled in the IDEMIA eID app (formerly Alabama eID) can securely approve the legitimacy of their state tax returns and receive refunds up to 60 percent faster. -
Some individual taxpayers get relief from underpayment penalty
Responding to concerns that individual taxpayers may have found it difficult to correctly estimate their 2018 tax liability because of the many changes enacted in the law known as the Tax Cuts and Jobs Act, P.L. 115-97, the IRS issued relief from the penalty for underpayment of estimated income tax to individual taxpayers who have paid 85% of their 2018 tax liability with withholding and estimated tax payments (Notice 2019-11). -
2019 standard mileage rates announced
The optional standard mileage rates for business use of a vehicle will increase significantly in 2019, after increasing slightly last year, the IRS announced Friday (Notice 2019-2). For business use of a car, van, pickup truck, or panel truck, the rate for 2019 will be 58 cents per mile up from 54.5 cents per mile in 2018. Taxpayers can use the optional standard mileage rates to calculate the deductible costs of operating an automobile. -
IRS, Security Summit Partners warn tax professionals of high risk of data theft attacks
Cybercriminals stepped up their attacks on tax professionals during 2018, prompting the Internal Revenue Service and the Security Summit partners to urge practitioners to take steps to protect client data and their computer networks from these threats. -
Security Summit Partners highlight new password guidance, urge taxpayers and practitioners to protect all accounts
To help protect against cybercriminals stealing identities, the IRS, state tax agencies and the nation’s tax industry urged people to review new, stronger standards to protect the passwords of their online accounts. -
IRS sees surge in email phishing scams
Summit Partners urge taxpayers: 'Don't Take the Bait' -
Taxpayers Help the Alabama Department of Revenue Protect Their Identity
The Alabama Department of Revenue (ADOR) partnered with IDEMIA (formerly MorphoTrust® USA) to launch a new pilot program utilizing IDEMIA’s electronic ID (eID) to combat state income tax fraud for 2017 and future filing seasons. -
Tax Relief for Victims of Hurricane Michael in Alabama
The President has declared that a major disaster exists in the State of Alabama. Following the recent major disaster declaration issued by the Federal Emergency Management Agency, the IRS announced today that affected taxpayers in certain counties will receive tax relief. -
Renew expiring ITINs now to file a return next year
The Internal Revenue Service reminds taxpayers with expiring Individual Taxpayer Identification Numbers (ITINs) to submit their renewal applications as soon as possible. Failing to renew them by the end of this year will cause refund and processing delays in 2019. -
President Donald J. Trump Approves Alabama Emergency Declaration
menuALL NEWS Yesterday, President Donald J. Trump declared that an emergency exists in the State of Alabama and ordered Federal assistance to supplement State, Tribal, and local response efforts due to the emergency conditions resulting from Hurricane Michael beginning on October 10, 2018, and continuing. -
ADOR Providing Tax Relief to Victims of Hurricane Michael
The Alabama Department of Revenue is offering tax relief to Alabama taxpayers who have been affected by damage caused by Hurricane Michael. The tax relief measures will mirror IRS measures in the same declared disaster areas. -
IRS extends Oct. 15 and other upcoming deadlines, provides expanded tax relief for victims of Hurricane Michael
Hurricane Michael victims in parts of Florida and elsewhere have until Feb. 28, 2019, to file certain individual and business tax returns and make certain tax payments, the Internal Revenue Service announced today. -
EXECUTIVE ORDER – Temporary Suspension of Alabama Terminal Excise Tax Requirements (Hurricane Michael)
Vernon Barnett, Commissioner of the Alabama Department of Revenue, declared that because there is a state of emergency resulting from Hurricane Michael, it is necessary to assist and expedite all efforts of relief. In order to accommodate this need and provide assistance to the citizens affected by this storm, Commissioner Barnett ordered the temporary suspension of the motor fuel exporter licensing and motor fuel transporter licensing requirements associated with the Alabama Terminal Excise Tax for exporters and transporters supporting disaster relief efforts by engaging in the export of motor fuel from Alabama to other states impacted by Hurricane Michael. -
IRS issues 2018–2019 per-diem rates
Business travelers who incur expenses while traveling away from home have new per-diem rates to use in substantiating certain of those expenses (Notice 2018-77). The new rates are in effect from Oct. 1, 2018, to Sept. 30, 2019. -
Rules issued on paid family and medical leave credit
The IRS on Monday issued 34 questions and answers on new Sec. 45S, which was added by the law known as the Tax Cuts and Jobs Act, P.L. 115-97, to provide a general business credit for employers who provide paid family and medical leave to their employees (Notice 2018-71). -
IRS proposes regulations that could impact Alabama Accountability Act donors
The IRS has announced proposed regulations that, if implemented, could negatively impact Alabama Accountability Act donors. -
Get your groove back: 4 tips to ramp up for fall busy season
Is there any season more relaxing than summer? The weather is warm. The days are long. Perhaps best of all, busy season is still a ways off. There’s no cause to worry about extensions or business returns or even tax reform, right? -
Summary of Newly Released ADOR Analysis of Federal Tax Reform's Impact on Alabama Income Tax Laws
On July 31, the Alabama Department of Revenue (ADOR) released its long-awaited “Analysis of Federal Tax Law Revisions on the State of Alabama,” a comprehensive review of the changes brought about by the Tax Cuts and Jobs Act of 2017 (TCJA), commonly known as federal tax reform, and how those changes will likely affect Alabama taxpayers. -
ADOR Publishes Guidance Related to the Federal Tax Cuts and Jobs Act
The Alabama Department of Revenue has issued its preliminary guidance on the impact of the provisions of the Tax Cuts and Jobs Act (TCJA). -
Could IRS reform mean smoother waters for tax practitioners?
This past busy season, increased IRS demands caused even more operational problems, affecting how tax practitioners do business. Here’s how the AICPA is working to change things in Washington. -
Calling all tax CPAs: help quality reviews take center stage
Data breaches happen daily. We see it in the news, and we hear it from our clients. Clients trust us with their private information including Social Security numbers, paystubs, birthdays and other data valuable to identity thieves. -
ADOR Launches Tax Amnesty Website, Application Period Opened July 1
The Alabama Legislature has enacted the Alabama Tax Delinquency Amnesty Act of 2018 to allow qualifying taxpayers to receive a waiver of penalties and interest on eligible tax types. The application period is now open through September 30, 2018. -
What to Know About Tax Credits for Workers
It’s going to cost your small business clients to hire this summer, but at least the wages are deductible on their annual returns. Even better, if they hire workers from one of several “target groups,” a portion of the wages may qualify for a special tax credit. -
IRS working on a new Form 1040 for 2019 tax season
As part of a larger effort to help taxpayers, the Internal Revenue Service plans to streamline the Form 1040 into a shorter, simpler form for the 2019 tax season. -
IRS guidance still needed on key tax reform issues
We’ve identified areas requiring immediate IRS attention and offered comments to the IRS and Treasury to influence guidance in a way that best serves you. These items affect your business, and we hope to influence any Treasury or IRS guidance in a way that serves you best. -
Form 1040 to be shorter but with more schedules
The IRS is working on a draft version of the 2018 Form 1040, U.S. Individual Income Tax Return, that reduces the size of the form to two half-pages in length and eliminates more than 50 lines, compared to the 2017 version of the form. The draft form moves many items that in the past have appeared on the face of the 1040 to various new schedules. -
Need for IRS Guidance on New Pass-Through Deduction a Top Member Concern
When will the Internal Revenue Service (IRS) issue guidance on new Internal Revenue Code s