Tag: IRS

  • Questions You May Still Have After Filing Your Tax Return

    Questions You May Still Have After Filing Your Tax Return

    If you’ve successfully filed your 2022 tax return with the IRS, you may think you’re done with taxes for another year. But some questions may still crop up about the return. Here are brief answers to three questions that we’re frequently asked at this time of year. When will your refund arrive? The IRS has…

  • IRS Audits May Be Increasing, So Be Prepared

    IRS Audits May Be Increasing, So Be Prepared

    The IRS recently released its audit statistics for the 2020 fiscal year and fewer taxpayers had their returns examined as compared with prior years. But even though a small percentage of returns are being chosen for audit these days, that will be little consolation if yours is one of them. Latest statistics Overall, just 0.5%…

  • Many Parents Will Receive Advance Tax Credit Payments Beginning July 15

    Many Parents Will Receive Advance Tax Credit Payments Beginning July 15

    Eligible parents will soon begin receiving payments from the federal government. The IRS announced that the 2021 advance child tax credit (CTC) payments, which were created in the American Rescue Plan Act (ARPA), will begin being made on July 15, 2021. How have child tax credits changed? The ARPA temporarily expanded and made CTCs refundable…

  • What Happens If an Individual Can’t Pay Taxes

    What Happens If an Individual Can’t Pay Taxes

    You may wonder what happens in the event you or someone you know can’t pay taxes on time. Here’s a look at the options. Common penalties The “failure to file” penalty accrues at 5% per month or part of a month (to a maximum of 25%) on the amount of tax your return shows you…

  • Employers Have Questions and Concerns About Deferring Employees’ Social Security Taxes

    Employers Have Questions and Concerns About Deferring Employees’ Social Security Taxes

    The IRS has provided guidance to employers regarding the recent presidential action to allow employers to defer the withholding, deposit, and payment of certain payroll tax obligations. The three-page guidance in Notice 2020-65 was issued to implement President Trump’s executive memorandum signed on August 8. Private employers still have questions and concerns about whether, and…

  • Businesses: Get Ready for the New Form 1099-NEC

    Businesses: Get Ready for the New Form 1099-NEC

    There’s a new IRS form for business taxpayers that pay or receive nonemployee compensation. Beginning with tax year 2020, payers must complete Form 1099-NEC, Nonemployee Compensation, to report any payment of $600 or more to a payee. Why the new form? Prior to 2020, Form 1099-MISC was filed to report payments totaling at least $600…

  • Good Records Are the Key to Tax Deductions and Trouble-Free IRS Audits

    Good Records Are the Key to Tax Deductions and Trouble-Free IRS Audits

    If you operate a small business, or you’re starting a new one, you probably know you need to keep records of your income and expenses. In particular, you should carefully record your expenses in order to claim the full amount of the tax deductions to which you’re entitled. And you want to make sure you…

  • Three Issues to Consider After You File Your Tax Return

    Three Issues to Consider After You File Your Tax Return

    The tax filing deadline for 2019 tax returns has been extended until July 15 this year, due to the COVID-19 pandemic. After your 2019 tax return has been successfully filed with the IRS, there may still be some issues to bear in mind. Here are three considerations. 1. Some tax records can now be thrown…

  • Hiring Independent Contractors? Make Sure They’re Properly Classified

    Hiring Independent Contractors? Make Sure They’re Properly Classified

    As a result of the coronavirus (COVID-19) crisis, your business may be using independent contractors to keep costs low. But you should be careful that these workers are properly classified for federal tax purposes. If the IRS reclassifies them as employees, it can be an expensive mistake. The question of whether a worker is an…