COVID-19

  • IRS Announces Penalty Relief for Nearly 5 Million Tax Returns

    The IRS has announced new penalty relief totaling around $1 billion to approximately 4.7 million individuals, businesses, and tax-exempt organizations. This relief is aimed at those who did not receive automated collection reminder notices during the pandemic, which were temporarily suspended in February 2022 due to the COVID-19 crisis. The IRS will issue a special…

  • Time Running Out to File for Recovery Rebate Credit

    The window for claiming a pandemic-driven tax credit is still open to taxpayers who didn’t take advantage of it during the main Covid outbreak. But closing dates are approaching, making filing a claim for eligible taxpayers (tax years 2020 or 2021) a priority for tax preparers.  For a historical background, we have to go back…

  • IRS OKs Temporary Use of e-Signatures on Certain Forms

    The Internal Revenue Service has approved the use of e-signatures on certain forms that can’t be filed electronically. The move comes in response to the coronavirus pandemic, in order to protect the health of taxpayers and tax professionals alike. The change helps reduce in-person contact while lessening the risks to taxpayers and tax professionals by…

  • Drake Software Online Training and More – E47

    What Drake Software webinars and webcasts are available? It’s no secret that COVID-19 brought many large, indoor gatherings to a screeching halt. Businesses and organizations across the country have been forced to adjust how they conduct routine business, and the tax industry is no different.  Drake Software Director of Education Christine Reynolds and Drake Software…

  • 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…

  • 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…

  • 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…

  • IRS Announces Suspension of CAF Service

    The Internal Revenue Service last week announced yet another service that will be temporarily closed due to social-distancing measures the agency has put in place to protect employees from the COVID-19 outbreak. In addition to the growing list that includes the Income Verification Express Service (IVES), IRS National Distribution Center, live phone support, and paper-tax-return…

  • IRS Explains the Coronavirus Stimulus Scam

    Last Saturday, Taxing Subjects spotlighted a phishing scam that emerged after legislators passed the CARES Act, which distributes economic impact payments to help recover from financial hardships caused by COVID-19. Today, the IRS outlined common tactics used by these scammers, as well as briefly explaining the economic impact payment process. What is the ‘coronavirus stimulus…