QBI

  • Consider Amending Returns That Didn’t Take Unemployment Compensation Exclusion

    Major tax legislation usually causes a period of confusion as taxpayers and tax professionals wait for official guidance on complex provisions. The American Rescue Plan Act of 2021 is no different. The Internal Revenue Service this week announced they will automatically issue refunds for some unemployment compensation recipients who filed their tax year 2020 return…

  • IRS Says PPE Expenses Could be Deductible

    A new announcement from the Internal Revenue Service should come as welcome news to front-line health care workers nationwide. Announcement 2021-7 clarifies existing language to assure taxpayers that the purchase of personal protective equipment (PPE) can be deductible. When items such as masks, hand sanitizer and sanitizing wipes are purchased to prevent the spread of…

  • IRS Now Sending EIP Checks, Debit Cards

    As the old phrase goes, things are looking up. The Internal Revenue Service says more Economic Impact Payments (EIP3) are coming this week—a second round that will include paper checks and prepaid debit cards. Taxpayers getting direct deposits will see a deposit date of Wednesday, March 24, with some recipients getting their deposits even sooner.…

  • Tax Day Pushed Back to May 17

    Much like last year, the 2021 filing season has been characterized by challenges. The season started later than usual, tax professionals and taxpayers continue to manage pandemic safety precautions, and guidance is pending for the retroactive tax law changes included in the American Rescue Plan Act of 2021 that President Biden signed into law last…

  • Taxpayers Can Still Get Credit for IRA Contributions on 2020 Returns

    Taxpayers, no matter their age, may be able to claim a deduction on their 2020 tax returns for contributions to their Individual Retirement Arrangement (IRA) if they make them by April 15. Contributions to a traditional IRA are usually tax-deductible, and distributions are generally taxable. Taxpayers have from now to April 15, 2021, to make…

  • IRS Now Sending Out Third Round of Economic Impact Payments

    It won’t be long before Americans start seeing the third round of Economic Impact Payments—also known as EIP3—showing up in their bank accounts and mailboxes. The Internal Revenue Service is sending direct deposit payments first; some recipients could see their deposit by the weekend. No action is needed by most taxpayers, but they can use…

  • IRS Has Resources for Visually Impaired Taxpayers

    The Internal Revenue Service has a number of resources and accessibility services available to taxpayers who need them. The IRS’s Alternative Media Center has tax-related content available in several formats for use with assistive technology. Available services include screen-reading software, refreshable Braille displays and screen magnifying software. Taxpayers can visit the AMC to view and download…

  • The IRS Has Tips for Getting and Correcting Tax Documents

    It’s not uncommon for taxpayers to forget some of the tax documents required to accurately file their return, even in a normal year. When dealing with a chaotic mix of mail delays, new tax credits, underemployment, and unemployment, it’s almost guaranteed that there will be at least a few issues. That’s why the Internal Revenue…

  • IRS Interest Rates Steady for Second Quarter

    The Internal Revenue Service says its interest rates will hold at previous levels for the second quarter of 2021. The IRS says the interest rates will be: 3% for overpayments (2% in the case of a corporation); 0.5% for the portion of a corporate overpayment exceeding $10,000; 3% for underpayments; and 5% for large corporate…

  • The Employee Retention Credit Covered in New IRS Notice

    Congress bookended 2020 with two taxpayer relief packages aimed at mitigating the financial strain caused by the ongoing coronavirus pandemic. The Coronavirus Aid, Relief, and Economic Securities Act and Taxpayer Certainty and Disaster Tax Relief Act of 2020 include a number of provisions that either create or modify tax relief for individual taxpayers and businesses.…