Category Archives: IRS

Hug Your Tax Professional: The IRS Is At It Again

Posted on January 20, 2022 by Russ

I was hoping that the 2022 Tax Season (which begins for individuals on Monday) would be more pleasant than the last two.  Yes, the IRS didn’t cause Covid; however, as the National Taxpayer Advocate noted in her recent report the … Continue reading →

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Frozen Returns: If You Made an Extension Payment on May 17th And Haven’t Received Your Refund….

Posted on January 11, 2022 by Russ

Yesterday, a client of mine called asking about her 2020 tax refund.  I assumed she was one of the unlucky individuals whose return fell out of IRS processing and is stuck waiting to be reviewed.  However, she told me that … Continue reading →

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Tax Season (For Individuals) to Begin on January 24th

Posted on January 10, 2022 by Russ

The IRS announced today that Tax Season will begin on Monday, January 24th.  That’s the first date that electronically filed returns (and extensions) for the 2021 tax year will be accepted for individuals.  (Businesses can already file their 2021 returns.) … Continue reading →

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It’s Time to Generate 2021 1099s

Posted on January 4, 2022 by Russ

It’s time for businesses to send out their annual information returns. These are the Form 1099s that are sent to to vendors when required. Let’s look first at who does not have to receive 1099s: Corporations (except attorneys) Entities you … Continue reading →

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It’s Time to Start Your 2022 Mileage Log

Posted on January 3, 2022 by Russ

I’m going to start the new year with a couple reposts of essential information. Yes, you do need to keep a mileage log: Monday will be the first business day of the new year for many. You may have resolved … Continue reading →

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The 2021 Tax Offender of the Year

Posted on December 31, 2021 by Russ

It’s time once more for that (not really) most prestigious of prestigious awards, the Tax Offender of the Year.  One year I’ll find that I don’t have many deserving winners (probably the year after I retire); however, there were plenty … Continue reading →

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Dear IRS: What Part of Deceased Didn’t You Understand?

Posted on December 16, 2021 by Russ

Last year, one of our clients (call him John Smith) passed away.  I had both a Power of Attorney and Tax Information Authorizations on file with the IRS for this taxpayer.  One of the rules about representation is that when … Continue reading →

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IRS Appears to Add Requirement for Individuals to Include Statement on PPP Loan Forgiveness for 2021 Personal Returns

Posted on December 6, 2021 by Russ

On Friday, the IRS released draft instructions for Form 1040.  Buried on page 23 of the instructions (page 24 of the PDF) is the following: Forgiveness of Paycheck Protection Program (PPP) Loans The forgiveness of a PPP Loan creates tax-exempt … Continue reading →

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The IRS Can’t Figure Out Where to Apply an Electronic Payment…Where the IRS Was Told Where to Apply It

Posted on November 30, 2021 by Russ

My client received a letter from the IRS dated November 22, 2021: Taxpayer identification number: [redacted] Tax Period(s): Dec. 31, 2018 Form: 1040 We received a payment of $2,002.00 on Oct. 08, 2020. We don’t have enough information to apply … Continue reading →

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IRS: Per Diem Is Food Provided by Restaurants

Posted on November 16, 2021 by Russ

For tax years 2021 and 2022 taxpayers are allowed to deduct 100% of business meals provided by restaurants (per § 274(n)(2)(D) of the Internal Revenue Code).  One question that I had was how the per diem would be treated. Taxpayers … Continue reading →

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