Author: Frank Carnahan

2022-08-16 Taxpayers using a professional tax preparer should make sure they have all their information readily available before their appointment. Collecting their information and getting copies of any missing documents before taxpayers sit down to prepare their return is critical to filing an accurate tax return. Having organized records and information in hand helps prevent filing errors and will likely create a smoother filing experience. Here’s a list of information…

2022-08-15 Beginning August 2022, smaller charities that are eligible and choose to file Form 990-N, Electronic Notice for Tax-Exempt Organizations (e-Postcard), must sign into the IRS modernized authentication platform using either their active IRS username or create an account with ID.me, the current IRS credential service provider. When accessing the Form 990-N submission page, Form 990-N filers have three options: Sign in with their active IRS username: Users with an…

2022-08-10 There are a few things business owners need to do before they close their business ( https://www.irs.gov/businesses/small-businesses-self-employed/closing-a-business ). Of course, they need to fulfill their federal tax responsibilities. It’s also important to notify the IRS of their plans. http://ow.ly/ZOfq50KbJYC Business owners must take these steps when closing a business: File a final tax return and related forms. The type of return to file and related forms depends on the…

2022-08-02 A business might pay an independent contractor and an employee for the same or similar work, but there are key legal differences between the two. It is critical for business owners to correctly determine whether the people providing services are employees or independent contractors. An employee is generally considered anyone who performs services, if the business can control what will be done and how it will be done. What…

2022-07-08 The IRS may ask the taxpayer to extend the statute of limitations on assessment of additional tax during a tax audit if the statute of limitations is about to run out. This is a complex situation, so consultation with an adviser is recommended. While the taxpayer may have a natural urge to decline the request, each taxpayer's facts and circumstances must be considered when deciding whether to agree to…

2022-06-22 The Internal Revenue Service today announced expanded voice bot options to help eligible taxpayers easily verify their identity to set up or modify a payment plan while avoiding long wait times. (IR-2022-127, Internal Revenue Service, (Jun. 20, 2022)) Eligible taxpayers who call the Automated Collection System (ACS) and Accounts Management toll-free lines and want to discuss payment plan options can authenticate or verify their identities through a personal identification…

2022-05-19 The Internal Revenue Service’s Independent Office Of Appeals has seen its cycle times for handling appeals cases stretch to more than year during the COVID-19 pandemic, but the office is working to get it back to pre-pandemic levels. The cycle time for closed cases in fiscal year 2021 reached 372 days, up from 194 days in fiscal year 2018. Keyso noted that the upward trend started from there into…

2022-05-04 Taxpayers submitting offers to the IRS must use the most current year version of the booklet to avoid unnecessary issues with processing their offers. An updated Spanish version of the form is scheduled for release later this year. Taxpayers thinking about submitting an offer will want to check out the IRS’s Offer in Compromise Pre-Qualifier Tool to make sure they’re eligible to file one. (Note: even though individuals and businesses can…

2022-04-25 The standard allowances provide consistency and fairness in collection determinations by incorporating average expenditures for citizens in similar geographic areas, and reduce subjectivity when determining what a taxpayer may claim as basic living expenses to avoid undue hardship when the taxpayer must delay full payment of a delinquent tax.

2022-03-28 Special exceptions now allow some workers who are 18 years old and were formerly in foster care or are experiencing homelessness to claim the EITC.