EIP’s, RRC’s and your stimulus checks

Congress passed several bills in the last year to provide relief for millions of Americans who are struggling financially due to the COVID-19 pandemic. Some of the provisions in these bills were geared toward assisting businesses (for example, PPP loans), while some provided aid directly to individuals. Don’t miss: Planning for stimulus The first bill …

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Planning for stimulus

Will there be a third round of stimulus? While the White House and the Congress discuss such things, enough rumor is flying around that we need to plan for a potential third round of stimulus. As many realize, the official start of tax season was much later this year – February 12 – partially because …

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Are you choosing the best tax preparer?

It is in the taxpayer’s best interest to choose a tax preparer that best suits their needs. After all, responsibility does fall on the taxpayer for the information disclosed on their tax return, not the tax preparer. There is a large assortment of tax preparers available to assist you with your 2020 taxes, but are …

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Is your charitable donation tax deductible?

Charitable donations are a hot topic during tax season. Luckily, the IRS has a helpful tool to help you determine whether donations can be taken as tax-deductible charitable contributions. Don’t miss: What your tax professional needs (and doesn’t) to prepare your 1040 It is called the Tax-Exempt Organization Search. This helpful tool lets you search …

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What your tax professional needs (and doesn’t) to prepare your 1040

For many people, maybe you, preparing a tax return is like a foreign language. Luckily for you, you can always have a tax professional prepare your tax return for you. It can be hard to distinguish what your tax professional needs to complete your return between all the statements, documents and other miscellaneous items you …

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Tax preparation, security and the IRS

I received an email from the Internal Revenue Service – no, really, it is legitimate. It wasn’t a scam trying to get my personal information – I have actually signed up for these emails directly on IRS.gov.  There is this page where you can subscribe to emails – turns out that some of them are …

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Did you receive IRS Notice CP21C? It’s wrong!

Notice CP21C has been sent to more than 109,000 taxpayers by the IRS to notify them that their Economic Impact Payment (EIP) was being “offset”. Don’t miss: Who pays the deceased’s taxes? The notice contains the following error: “We applied a credit to your 2007 tax account due to new legislation. We used (offset) all …

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Who pays the deceased’s taxes?

When a person dies, you might be wondering who is responsible for paying his or her taxes. Generally, the person’s estate or trust is responsible for those liabilities and pays them before making distributions to the beneficiaries. In situations where the liabilities exceed the assets (i.e. insolvent), state law governs which creditors get paid first. …

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The new form 1099-NEC

Another new change is coming for the 2020 tax season. Nearly 70% of filers in 2019 who reported income in Box 7 (nonemployee compensation) of Form 1099-MISC will now be using the new Form 1099-NEC to report nonemployee compensation! Don’t miss: Closing down a sole proprietorship The IRS decided to make this change effective for …

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Closing down a sole proprietorship

Unfortunately, due to Covid-19, a lot of individuals have had to make the difficult decision to close their businesses. Closing a sole proprietorship legally has several steps and boxes to check to make sure the business is permanently closed. Here are the steps the IRS has laid out to help you close your sole proprietorship. …

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