The Internal Revenue Service sent a large number of CP14 notices dated July 5, 2021 to individuals that had an amount due on their 2020 income tax return. These notices appear to be sent in error; however, there are steps you should take to prevent further action and dispute the amount due.
Based on our research and conversations with other CPAs, the IRS has deposited tax payments made on individual’s 2020 income returns; but has not updated individual accounts to credit payments made.READ MORE
The American Rescue Plan Act of March 2021 changed a number of provisions for the child tax credit – these tax changes are temporary and only apply to the 2021 tax year.
As we begin the month of April, please be assured your 2020 income tax return has been prepared and is awaiting CPA review. You should expect to hear from us soon.
With some of the tax law changes that happened in 2021 that affected 2020, we have been awaiting guidance from the IRS for updated forms and how to report certain items correctly the first time. The tax returns become more complex (e.g., reconciling stimulus payments, cryptocurrency, due diligence reporting for tax credits, etc.) each year and we are attempting to keep everyone in compliance.READ MORE
You can check the status of both your payments by using the IRS Get My Payment tool. If you have not received your full payment by the time you file your 2020 tax return, you may claim the Recovery Rebate Credit.
For more information, click HERE.
Here is a review of significant changes that may impact you for the tax year 2020 filing season from the:
Do you have an employer 401(k) plan or other retirement plan assets? Should you consolidate accounts? Here are some ideas and recommendations to consider.
You probably already know these things, but it is always a good reminder to remember the following items to minimize the risk of your identity being stolen. The time and money you will spend in recovery is expensive – and potentially avoidable.
The U.S. Treasury Department and Internal Revenue Service (IRS) released guidance yesterday (November 18, 2020) clarifying the tax treatment of expenses where a Paycheck Protection Program (PPP) loan has not been forgiven by the end of the year the loan was received.
Since businesses are not taxed on the proceeds of a forgiven PPP loan, the expenses are not deductible. This results in neither a tax benefit nor tax harm since the taxpayer has not paid anything out of pocket.READ MORE
Generally, if you rent out a vacation home while you not using it personally, you can deduct expenses to offset taxable income from the rental. This includes mortgage interest, property taxes, repairs, utilities, insurance, etc. (Mortgage interest and property taxes are subject to additional rules for a qualified personal residence).
You might even be able to deduct a loss on your income tax return in that year if your personal use of the vacation home does not exceed the greater of (a) 14 days or (b) 10% of the time the home is rented out.READ MORE