Author: Frank Carnahan

IR-2020-248, Nov. 2, 2020 WASHINGTON – 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. ... The revised COVID-related collection procedures will be helpful to taxpayers, especially those who have a record of filing their returns and paying their taxes on time. Among the highlights of the Taxpayer Relief Initiative: Taxpayers who…

2020-10-07 IRS Issues Final Regulations on Wage Withholding, Redesigned W-4, T.D. 9924, filed with the Federal Register on October xx, 2020. The final regulations do not require all employees with a 2019 or earlier Form W-4 in effect to furnish a redesigned Form W-4. The regulations adopt optional computational bridge entries that will allow employers to continue in effect 2019 or earlier Forms W-4 as if the employees had furnished…

2020-10-06 The SBA issued guidance on October 2, 2020, for when an Original Borrower has received a Paycheck Protection Program (“PPP”) Loan and, prior to loan forgiveness, wishes to transfer ownership to a new purchaser.  Under the SBA Procedural Notice: Paycheck Protection Program Loans and Changes of Ownership For purposes of the PPP, a “change of ownership” will be considered to have occurred when: (1) at least 20 percent of…

2020-09-25 Lenders should not file information returns or furnish payee statements under section 6050P of the Internal Revenue Code (Code) to report the amount of qualifying forgiveness with respect to covered loans made under the Paycheck Protection Program (PPP) administered by the Small Business Administration (SBA). Announcement 2020-12. Under the Coronavirus Aid, Relief, and Economic Security Act, Pub. L. No. 116-136, 134 Stat. 281 (March 27, 2020), as amended by…

2020-09-24 The IRS is processing a backlog of mail due to COVID-19, and paper checks mailed to the IRS mailed to the IRS with or without a tax return, may still be unopened. Taxpayers in this situation should not cancel their checks and should make sure funds remain available so the IRS can process them to avoid potential penalties and interest. The IRS credits payments using the postmarked date on…

2020-09-04 The IRS has a monthly program for tax professionals to provide information, discuss issues, and field questions. On the September 3 call, the IRS provided updated information on the presidential memorandum (“Payroll Tax Deferral Order”) that President Trump signed on August 8.There is an IRS web page at https://www.irs.gov/newsroom/guidance-issued-to-implement-presidential-memorandum-deferring-certain-employee-social-security-tax-withholding. A FAQ section is supposed to be coming “soon”. If you call the Notice 2020-65 Hotline at 202-317-5436 (not a…

2020-09-02 The Missouri Administrative Hearing Commission ("AHC") held that the fees paid for the taxpayer’s guide service were not paid to or in a place of amusement and not taxable. Angler Outfitters v. DOR, AHC No. 18-1143, August 20, 2020. Anglers only contested tax on guided trips, not tax on personal property sales or supply rentals. Anglers charged first-time customers the same rate it charges repeat customers. The charge included…

2020-09-02 IRS Statement, August 21, 2020 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. Although the IRS continues to make significant reductions in the backlog of unopened mail that developed while most IRS operations were closed due to COVID-19, this temporary adjustment to processing is intended to lessen…

2020-09-02 President Trump signed a presidential memorandum (“Payroll Tax Deferral Order”) on August 8. The Payroll Tax Deferral Order defers the employee's share of the 6.2% Social Security tax under Code Sec. 3101(a) (as well as the similar provision applicable to railroad employees under the Railroad Retirement Tax Act) payroll taxes from on wages or compensation paid during the period starting September 1 through December 31, 2020, for individuals making…

2020-09-02 The Bipartisan Budget Act of 2015 (Public Law No. 114-74) replaced the auditing and tax collection procedures for partnerships under the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) and the electing large partnership rules with the centralized partnership audit regime, with the centralized partnership audit regime, also referred to as BBA or PBBA, generally effective for tax years beginning January 2018. Under the BBA, the IRS generally assesses…