2020 tax season comes to an end

During the 2020 tax season, the singular phrase that was overheard reminded me that I had not started a blog yet on the funny things heard towards the end of any filing season – whether it is the spring filing season (the main one) or this mini one here that deals with returns on extensions, …

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What educator expenses are tax deductible?

Teachers, here’s a pop quiz for you. What is the educator expense deduction? Are you an eligible educator? What educator expenses are tax deductible? How much can you deduct? Don’t miss: Identifying information to gather before calling the IRS The educator expense deduction allows teachers and administrators who qualify to deduct a portion of the …

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Identifying information to gather before calling the IRS

You’ve been on hold with the IRS for what seems like three days, and you’ve finally connected with a living, breathing human being! You’re probably feeling like you just won the lottery. Not so fast. All your patient waiting will have been for nothing if you don’t have the right identifying information the IRS is …

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Need an estate tax closing letter from the IRS?

An estate tax closing letter is a confirmation that the Internal Revenue Service will provide to the fiduciary of an estate after they have finishing reviewing and have accepted a Form 706. According to the IRS website, a fiduciary should wait at least nine months after the filing of the Form 706 to request the …

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Education tax benefits in Arizona have changed

Getting educated solely from the School of Hard Knocks or the University of Life is something Uncle Sam would like to help us avoid.  To that end we have 529 plans and other education tax benefits. What are they? Simply put, a 529 plan is an investment account that offers tax benefits when used to …

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2021 inflation adjustment for depreciation on cars and trucks is in

Each year, the Internal Revenue Service makes inflation adjustments for the allowable amount of depreciation that can be taken on cars and trucks. The IRS has just released the updated inflation adjustment for depreciation amounts for 2021. Don’t miss: Fuzzy math gives IRS Math Error Authority Passenger vehicles placed into service in 2021 that were …

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Fuzzy math gives IRS Math Error Authority

Unknown to many, including yours truly until recently, the IRS has a special power called Math Error Authority. Congress provided the IRS this authority to bypass normal audit and deficiency procedures in favor of this abbreviated process. Don’t miss: Are nonfungible tokens the new Bitcoin? Its purpose is to allow the IRS to assess a …

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Are nonfungible tokens the new Bitcoin?

Fungibility is the ability of an asset to be easily and readily interchanged for another like its kind. A $5 bill is fungible, whereas an owned home or a car is nonfungible. Due to the asset’s inability to be interchanged, it makes it one-of-a-kind, or unique. So, what are nonfungible tokens? Don’t miss: QR codes …

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QR codes make paying your tax bill a little easier

The Internal Revenue Service has added QR, or Quick Response, codes to some of the notices it sends taxpayers. Specifically, the codes are going on tax due notices. The goal, says the IRS, is to make it easier for taxpayers to deal with the notices. Recipients of the QR coded correspondence can use their smartphones …

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Potential tax issues with non-fungible tokens

The IRS gives guidance on virtual currency, however tax treatment of non-fungible tokens (NFTs) specifically has not been addressed. NFTs are considered to have a complete life cycle. It’s life cycle includes its creation, use, sale or exchange, contribution to a charity and total loss of value. How should tax professionals treat the gains, losses …

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