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Is It January 9th Yet? January 20, 2023
Last year, the IRS announced a new system for efiling 1099s (and other information returns) called IRIS. This system would be available for both professionals and individuals (and businesses) to efile 1099s. The system was supposed to be available on January 9th. On January 9th the webpage noted, “…[Y]ou can log in to IRIS starting […]
Russ
Start Your 2023 Mileage Log January 3, 2023
I’m going to start the new year with a couple reposts of essential information. Yes, you do need to keep a mileage log: Tuesday will be the first business day of the new year for many. You may have resolved to keep good records this year (at least, we hope you have). Start with keeping […]
Russ
2023 Standard Mileage Rates January 1, 2023
The IRS announced on December 29th the standard mileage rates: $0.665/mile for business use (up from $0.635/mile as of July 1, 2022); $0.22/mile for medical/moving for active-duty members of the Armed Forces; and $0.14/mile in service of charitable organizations. These rates do apply to electric and hybrid vehicles along with gasoline and diesel vehicles.
Russ
IRS Delays New $600 1099-K and Cryptocurrency Trading Reporting December 23, 2022
Two big announcements from the IRS today will have a major impact on 2022 tax returns (returns filed in 2023). First, the IRS announced a delay in implementing the $600 reporting for third-party payment platforms (Form 1099-K). Quoting from the announcement: “The IRS and Treasury heard a number of concerns regarding the timeline of implementation […]
Russ
IRS: Don’t Call Us, Don’t Write Us December 8, 2022
No, I’m not talking about my business: feel free to call or write us (but due to a water leak, our office is closed today, Thursday, December 8th–we’ll be in tomorrow). Rather, I’m talking about calling the IRS and writing the IRS. Let’s start with calling the IRS. For tax professionals like me, we use […]
Russ
If You Used IRS Direct Pay on October 20th Check Your Bank Records October 29, 2022
I love IRS Direct Pay. It’s a simple method to make payments to the IRS for most (but not all) taxes individuals might have. And it works…well, it works most of the time. I saw on Twitter the following: On October 20th, the IRS Direct Pay application had issues with processing payments. The issue was […]
Russ
Hurricane Ian: IRS Extends Deadline for All Floridians to February 15 September 29, 2022
The IRS announced today that because the state of Florida has been declared a disaster zone that tax deadlines for Floridians have been extended until February 15, 2023. This includes the individual and C-Corporation extended deadline of October 17th, the trust/estate (Form 1041) extension deadline of September 30th, payroll tax deadlines of October 31st and […]
Russ
The Trouble With Identity Protection Verification Notices September 16, 2022
The IRS sends two types of Identity Protection Verification Letters: LTR 4883C and LTR 5071C. If you receive a LTR 4883C, you must call the IRS’s Identity Protection unit so that your return is processed. If you receive a LTR 5071C, you can generally respond online and have your return processed. There are three main […]
Russ
Student Loan Forgiveness: Should You File or Wait? August 25, 2022
With President Biden’s announcement of forgiving student loans, there are some obvious questions: Will this be taxed by the IRS? Will this be taxed by the states with income taxes? Will this be upheld by the courts? When will there be guidance on this? When should impacted taxpayers file? We have answers to some of […]
Russ
If You Haven’t Filed Your 2019 and/or 2020 Tax Returns, You Have One Month to Do So and Avoid Late Filing Penalties August 24, 2022
Earlier today, the IRS announced extremely broad penalty relief for 2019 and 2020 late-filed tax returns. Here’s the beginning of the IRS’s press release: To help struggling taxpayers affected by the COVID-19 pandemic, the Internal Revenue Service today issued Notice 2022-36, which provides penalty relief to most people and businesses who file certain 2019 or […]
Russ