Tax News
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IRS Not Pushing Back July 15 Deadline
The Internal Revenue Service has some bad news for taxpayers hoping that the tax filing and payment deadlines would get pushed back again. In a recent IRS Newswire press release, the agency said taxpayers should either file their tax return or an extension by July 15. What is the deadline for taxpayers who request an…
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IRS Processing CAF Requests, Reducing Backlog
When will the IRS start processing CAF requests? The Internal Revenue Service last Thursday announced that it is beginning to process Centralized Authorization File requests, like Forms 2848 and 8821. This comes two weeks after the IRS issued an update for reporting agents saying they have resumed processing Forms 8655, signaling that the IRS is…
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IRS Now Processing Forms 8655
The Internal Revenue Service announced that have resumed processing Forms 8655 in a recent update for reporting agents. While the doors are open at the service center responsible for processing agent authorization forms, the agency cautions that they are “not at full staffing levels to allow social distancing.” The update began by tempering expectations, laying…
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IRS Announces E-File Support for Form 1040-X
When can I e-file a Form 1040-X? If you would prefer to electronically file the stack of Forms 1040-X sitting on your desk, the Internal Revenue Service has some good news. The IRS will be working with the tax software industry and developers, like Drake Software, to meet the agency’s “later this summer” target launch…
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Treasury Sending Prepaid Debit Cards to Some EIP Recipients
Would you prefer to receive your Economic Impact Payment on a prepaid debit card? The Treasury Department said that will be a reality for almost 4 million Americans in a recent press release, which announced that “EIP Cards” will be issued by MetaBank as part of the US Debit Card Program. Treasury Secretary Steven Mnuchin…
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IRS Urges Low-Income Non-Filers to Use EIP Reporting Tool
Some low-income Americans may need to report EIP-qualifying information to the IRS. With the dependent-reporting deadline for non-filers who are automatically receiving their Economic Impact Payment passed, the Internal Revenue Service reminded low-income Americans who don’t normally file a tax return that they are probably eligible for a CARES Act-authorized payment. While non-filers who receive…
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IRS Issues “Plus $500” Last Call for SSI, VA Beneficiaries with Dependents
May 5, 2020, is the EIP-reporting deadline for SSI and VA beneficiaries with qualifying dependents. The Internal Revenue Service today issued a “plus $500” last call for Supplemental Security Income and Veterans Affairs beneficiaries who can claim dependents. After May 5, they will not be able to use the Non-Filers: Enter Payment Info Here tool…
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May 2020 Enrolled Agent Exam Cancelled due to Coronavirus
The Internal Revenue Service says it had to delay the Special Enrollment Examination (SEE) tests for Enrolled Agents that was slated for May due to the coronavirus pandemic. Prometric, the company that does SEE testing for the IRS has closed its testing centers in the US and Canada through May 31 because of the pandemic.…
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Hunting, Fishing Tax Hits the Mark
It’s not often that a federal tax gets high marks for its results, but the Tax Foundation points to one in particular that hits the bullseye. The foundation’s Ulrik Boesen writes that an excise tax on firearms and other hunting and fishing gear is feeding tax proceeds back into projects that ultimately benefit outdoorsmen paying…
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Can I Buy OTC Medication with FSA, HSA, and HRA Funds?
The CARES Act removes an ACA limitation on using FSA, HSA, and HRA funds to pay for over-the-counter medication. The CARES Act—famous for authorizing the $1,200 Economic Impact Payments that Americans have begun receiving—also includes important, coronavirus-related changes for flexible spending accounts (FSAs), health savings accounts (HSAs), and health reimbursement arrangements (HRAs). This isn’t the…