2021-12-10 The IRS announced new how-to video series enabling taxpayers to avoid potential scams by considering and applying for an Offer in Compromise (OIC) themselves have been added. An offer in compromise allows a taxpayer to settle a tax debt for less than the full amount you owe if you qualify. Hopefully taxpayers can avoid paying excessive fees to companies who promise to lower taxes to pennies on the dollar.…
2021-12-10 Beginning with offers in compromise accepted on or after Nov. 1, 2021, the IRS will no longer recoup refunds for the calendar year in which the agreement was reached, according to interim guidance dated Oct. 28, 2021. The agency will no longer apply those refunds to outstanding debts for the year, or years, covered by the offer in compromise agreement. To prevent gaming, there is an exception to the…
The IRS announced that a limited liability company (LLC) must satisfy certain standards to receive a determination letter recognizing it as tax-exempt under Code Secs. 501(a)(1) and 501(c)(3). This does not affect the status of organizations currently recognized under Code Sec. 501(c)(3). LLC’s articles of organization and its operating agreement each include provisions requiring that: each member of the LLC be either:(1) recognized as aforementioned; (2) a governmental unit under…
2021-09-23 The Internal Revenue Service has awarded new contracts to three private-sector collection agencies for collection of overdue tax debts. The new contracts begin Thursday following today's expiration of the old contracts. Beginning Thursday, Sept. 23, 2021, taxpayers with unpaid tax bills may be contacted by one of the following three agencies: CBE Group, IncCoast Professional, IncConServePO Box 2217PO Box 526PO Box 307Waterloo, IA 50704Albion, NY 14411Fairport, NY 14450800-910-5837888-928-0510844-853-4875 Notification…
2021-09-14 One of many recent enhancements to the Online Account for individuals, thus new feature allows individual taxpayers to authorize their tax practitioner to represent them before the IRS with a Power of Attorney (POA) and to view their tax accounts with a Tax Information Authorizations (TIA). This new digital authorization option will be a much faster process. It will allow the IRS to reduce its current CAF inventory and…
2021-09-14 The Internal Revenue Service urged those entities with Employer Identification Numbers (EINs) to update their applications if there has been a change in the responsible party or contact information. IRS regulations require EIN holders to update responsible party information within 60 days of any change by filing Form 8822-B, Change of Address or Responsible Party - Business. It is critical that the IRS have accurate information in cases of…
Issue Number: Tax Tip 2021-107, 2021-07-26 An IRS online account is an safe an easy way for individual taxpayers to view specific details about their federal tax account. Here are some of the benefits and features of this online system. Taxpayers can view: Their payoff amount, which is updated for the current day.The balance for each tax year for which they owe taxes.Their payment history.Key information from the their most…
2021-07-20 IR-2021-154, July 19, 2021 The IRS launched a new feature that will give taxpayers digital control over who can represent them or view their tax records. The new feature, one of many recent enhancements to the Online Account for individuals, will allow individual taxpayers to authorize their tax practitioner to represent them before the IRS with a Power of Attorney (POA) and to view their tax accounts with a…
2021-06-22 The portal is open to Unenroll for the AdvCTC payments. The Child Tax Credit will help many families get advance payments of the Child Tax Credit starting in the summer of 2021. Half the total credit amount will be paid in advance monthly payments and taxpayers will claim the other half when they file their 2021 income tax return. The IRS will issue the first advance payment on July…
2021-06-14 The IRS has a new transcript format for its "Get Transcript" web page that better protects taxpayer data. This new format partially masks taxpayer's personally identifiable information. Financial data will remain fully visible to allow for tax preparation, tax representation or income verification. Learn more at About the New Tax Transcript and the Customer File Number. Cuation: The Get Transcript Service is for individual taxpayers to retrieve their own…