News

The IRS has announced it will begin accepting e-filed returns on February 12th:

https://www.irs.gov/newsroom/2021-tax-filing-season-begins-feb-12-irs-outlines-steps-to-speed-refunds-during-pandemic

There is considerable disagreement among the state taxing agencies at this point regarding how income of work-from-home telecommuters will be taxed by the state of taxpayer residence or the state where the employer is located.  Some states are beginning to take other states to court over the issue.

States Square Off Over Taxing Remote Workers’ Income

The IRS and Treasury have indicated that businesses that receive PPP loan forgiveness would NOT be allowed to deduct business expenses paid with the forgiven loan.

However, it appears the new relief bill includes language to allow deduction of those business expenses:

PPP Borrowers Stand to Gain Tax Deductions

The IRS has advised taxpayers to prepare for new sections on their 2020 tax returns, such as reconciliation of the EIP "stimulus payment."

Details at: https://www.irs.gov/newsroom/get-ready-for-taxes-whats-new-and-what-to-consider-when-filing-in-2021

The IRS recently posted an article on its program to target high-income non-filers:

https://www.irs.gov/about-irs/how-the-irs-prioritizes-compliance-work-on-high-income-non-filers-through-national-and-international-efforts

Word from several tax organizations from contacts inside the IRS is that Memphis and Ogden will begin accepting electronic signatures on Forms 2848 and 8821 in January.  The forms will have to be uploaded through an new IRS portal.  Details still to come.

Chet Burgess

On Monday, August 10, the Taxpayer Advocate Service (TAS) will begin helping taxpayers locate missing EIP payments.

TAS wll assist taxpayers with six specific types of situations, outlined in the following posting on the TAS blog:

https://taxpayeradvocate.irs.gov/news/nta-blog-tas-to-assist-correcting-eip-amounts-for-limited-groups-of-taxpayers?category=Tax%20News

The Taxpayer Advocate office for Georgia is located in Atlanta, and can be reached by phone at 404-338-8099 or by fax at 855-822-1232.

The IRS has just released its annual list of the Dirty Dozen tax scams to alert taxpayer and tax pros.  The Dirty Dozen for 2020 are:

• Phising
• Fake Charities
• Threatening Impersonator Phone Calls
• Social Media Scams
• Economic Impact Payments or Refund Thefts
• Senior Fraud
• Scams Targeting non-English Speakers
• Unscrupulous Tax Return Preparers
• Offer in Compromise Mills
• Fake Payments with Repayment Demands
• Payroll and HR Scams
• Ransomware

Click here to find the details on the IRS web site.

The Kiplinger Tax Letter quotes sources at the Internal Revenue Service as saying the Modernized E-File system will add the capability to electronically file amended 2019 tax returns by late this summer.

Currently, all amended returns must be filed on paper, and return processing has been substantially delayed by the coronavirus shutdown at the IRS.

Currently, only 2019 amended returns (Form 1040X) are planned to be accepted electronically.

 FOR IMMEDIATE RELEASE