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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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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IRS penalties to be aware of

When tax obligations are not met you as a taxpayer will owe a penalty to the IRS. A notice will be sent to you by mail detailing the penalty, reasons for the charge and the steps to proceed. There are different types of penalties for different violations. Here’s what you need to understand to avoid …

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Multistate Tax Commission updates online commerce tax protection interpretation

As brick and mortar stores fall to online commerce sites routinely doing business across state lines, the Multistate Tax Commission moved to update their interpretation of Public Law 86-272, the federal statute that limits a states’ ability to levy net income taxes on out of state businesses and shields companies whose only activity in the state …

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Are you still waiting for your tax refund?

Have you filed your 2020 tax return and are expecting a tax refund? Are you still anxiously awaiting that refund, and hearing stories of your friends, neighbors and co-workers already receiving theirs? This is frustrating to say the least for many taxpayers and causing concerns. Just know that you are not alone. Don’t miss: More …

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