Category Archives: IRS

If You Used IRS Direct Pay on October 20th Check Your Bank Records

Posted on October 29, 2022 by Russ

I love IRS Direct Pay.  It’s a simple method to make payments to the IRS for most (but not all) taxes individuals might have.  And it works…well, it works most of the time. I saw on Twitter the following: On … Continue reading →

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Hurricane Ian: IRS Extends Deadline for All Floridians to February 15

Posted on September 29, 2022 by Russ

The IRS announced today that because the state of Florida has been declared a disaster zone that tax deadlines for Floridians have been extended until February 15, 2023.  This includes the individual and C-Corporation extended deadline of October 17th, the … Continue reading →

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The Trouble With Identity Protection Verification Notices

Posted on September 16, 2022 by Russ

The IRS sends two types of Identity Protection Verification Letters: LTR 4883C and LTR 5071C.  If you receive a LTR 4883C, you must call the IRS’s Identity Protection unit so that your return is processed.  If you receive a LTR … Continue reading →

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Student Loan Forgiveness: Should You File or Wait?

Posted on August 25, 2022 by Russ

With President Biden’s announcement of forgiving student loans, there are some obvious questions: Will this be taxed by the IRS? Will this be taxed by the states with income taxes? Will this be upheld by the courts? When will there … Continue reading →

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If You Haven’t Filed Your 2019 and/or 2020 Tax Returns, You Have One Month to Do So and Avoid Late Filing Penalties

Posted on August 24, 2022 by Russ

Earlier today, the IRS announced extremely broad penalty relief for 2019 and 2020 late-filed tax returns.  Here’s the beginning of the IRS’s press release: To help struggling taxpayers affected by the COVID-19 pandemic, the Internal Revenue Service today issued Notice … Continue reading →

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IRS: Let’s Spend $5 (At Least) to Disallow $0.11

Posted on August 21, 2022 by Russ

When you file an amended return, you’re actually making a claim for refund.  Tax professionals have been filing (for their clients) amended payroll tax returns (Form 941) to obtain the Economic Recovery Credit (ERC).  I’ve done two (so far), and … Continue reading →

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Answering to a Higher Authority

Posted on August 10, 2022 by Russ

Robert Brockman, the 2020 Tax Offender of the Year, passed away last weekend.  Mr. Brockman was facing a 39-count indictment for tax fraud and related charges; his trial was set for this coming February.  Mr. Brockman’s attorneys argued that he … Continue reading →

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Do IRS Employees Know the Postmark Rule?

Posted on July 22, 2022 by Russ

So what’s the postmark rule?  The IRS notes this on their website: Your return is considered filed on time if the envelope is properly addressed, has enough postage, is postmarked, and is deposited in the mail by the due date. … Continue reading →

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Standard Mileage Rate Increases Beginning July 1st

Posted on June 9, 2022 by Russ

The IRS announced today that the standard mileage rate for the second half of 2022 will be $0.625/mile, up from $0.585/mile.  As the IRS notes: In recognition of recent gasoline price increases, the IRS made this special adjustment for the … Continue reading →

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Contributing to the IRS’s Paper Backlog

Posted on May 20, 2022 by Russ

A client of ours has filed Form 2553 three times to elect S-Corporation status.  The first time, his attorney sent the form to the IRS.  The second time, my client mailed the form (right before the pandemic began).  The third … Continue reading →

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