Category Archives: IRS

The Worst Written IRS Notice Ever?

Posted on April 21, 2022 by Russ

A client, living in a foreign country but who receives his mail in New Jersey (because mail to New Jersey is far more reliable than where he resides) received an IRS notice on his 2021 tax return: Your refund has … Continue reading →

Posted in IRS | Tagged | Comments Off on The Worst Written IRS Notice Ever?

Bozo Tax Tip #1: No Tax Form, No Income!

Posted on April 15, 2022 by Russ

A new client was on the phone with me last week: “Russ, I just found out that I don’t get a tax form for the income I earn.  That means I don’t have to report it, right?” This individual is … Continue reading →

Posted in IRS | Tagged | Comments Off on Bozo Tax Tip #1: No Tax Form, No Income!

Bozo Tax Tip #5: Procrastinate!

Posted on April 11, 2022 by Russ

Today is April 11th. The tax deadline is just seven days away. What happens if you wake up and it’s April 18, 2022, and you can’t file your tax? File an extension. Download Form 4868, make an estimate of what … Continue reading →

Posted in IRS, Maine, Massachusetts | Tagged | Comments Off on Bozo Tax Tip #5: Procrastinate!

Bozo Tax Tip #6: The $0.58 Solution

Posted on April 8, 2022 by Russ

With Tax Day fast approaching it’s time to examine yet another Bozo method of courting disaster. And it doesn’t, on the surface, seem to be a Bozo method. After all, this organization has the motto, Neither rain nor snow nor … Continue reading →

Posted in IRS | Tagged | Comments Off on Bozo Tax Tip #6: The $0.58 Solution

The IRS Is Broken, Example #786

Posted on March 29, 2022 by Russ

We received a letter for a client from the IRS on the 2016 tax year in yesterday’s mail: We made an error and sent you an interim letter for the tax period listed above.  Please disregard the letter 2645C that … Continue reading →

Posted in IRS | Comments Off on The IRS Is Broken, Example #786

IRS: On Third Thought, Let’s Grant “Relief” That Isn’t

Posted on February 17, 2022 by Russ

Yesterday, I wrote a post stating the IRS was giving relief on the new Schedules K-2 and K-3.  I did that because I believed what the IRS wrote.  The IRS stated: Coming relief from certain Schedule K-2 and K-3 reporting: … Continue reading →

Posted in IRS | Tagged , | Comments Off on IRS: On Third Thought, Let’s Grant “Relief” That Isn’t

IRS: “You Know That New K-2/K-3 Requirement: Well, We Had Second Thoughts.”

Posted on February 16, 2022 by Russ

UPDATE: Make sure you read the post of February 17, 2022 on this issue. Every so often the IRS actually listens to the tax professional community.  Tax professionals were unanimous in stating that requiring a domestic partnership with no foreign … Continue reading →

Posted in IRS | Tagged , | Comments Off on IRS: “You Know That New K-2/K-3 Requirement: Well, We Had Second Thoughts.”

That 6 Million Return Backlog? Oops, We Mad a Math Error: It’s Really 24 Million

Posted on February 12, 2022 by Russ

Everyone makes math mistakes.  When we last heard from IRS Commissioner Chuck Rettig, the backlog of unprocessed returns was down to about 6 million.  Per the Washington Post, that was slightly off–well, a bit more than slightly.  The true backlog … Continue reading →

Posted in IRS | Tagged , | Comments Off on That 6 Million Return Backlog? Oops, We Mad a Math Error: It’s Really 24 Million

The K-2/K-3 Kerfuffle

Posted on February 5, 2022 by Russ

The IRS announced a year ago that there would be two new forms for partnerships and S-Corporations with international income and/or partners: Schedules K-2 and K-3 (links are to the partnership versions of these forms).  Most tax professionals would have … Continue reading →

Posted in International, IRS | Tagged | Comments Off on The K-2/K-3 Kerfuffle

“Amount Due by January 3, 2022….”

Posted on February 4, 2022 by Russ

We receive lots of IRS notices for clients.  In yesterday’s mail, we received two CP14 notices.  These state that a taxpayer filed a return with a balance due.  Many times this is an issue of the return being processed before … Continue reading →

Posted in IRS | Tagged | Comments Off on “Amount Due by January 3, 2022….”