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IRS suspends requirement to repay excess advance payments of the 2020 premium tax credit

IRS COVID Tip 2021-55 The premium tax credit helps pay for health insurance coverage bought from the Health Insurance Marketplace. Eligible people can choose to have all, some, or none of the estimated credit paid in advance directly to their insurance company on their behalf. These payments – which are called advance payments of the premium tax credit, […]

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Do’s and don’ts for taxpayers who get a letter or notice from the IRS

IRS Tax Tip 2021-52 The IRS mails letters or notices to taxpayers for a variety of reasons including if: They have a balance due. They are due a larger or smaller refund. The agency has a question about their tax return. They need to verify identity. The agency needs additional information. The agency changed their […]

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Taxpayers should use the correct filing status for accuracy and to avoid surprises

IRS: Tax Tip 2021-51 Taxpayers need to know their correct filing status and be familiar with each option. The IRS Interactive Tax Assistant can help them determine their filing status. A taxpayer’s filing status typically depends on whether they are single or married on Dec. 31, which determines their filing status for that entire year. More than […]

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News from the Justice Department’s Tax Division

A federal grand jury in Philadelphia returned a superseding indictment charging a Pennsylvania man with 16 counts of assisting in the preparation of federal tax returns (emphasis by Zaher Fallahi, CPA, Esq.). According to the superseding indictment, Jean Coq of Philadelphia prepared tax returns for clients for tax years 2013 and 2014 that claimed inflated […]

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IRS explains which meals qualify for temporary 100% expense deduction

IRS explains which meals qualify for temporary 100% expense deduction Source: AICPA Journal of Accountancy The IRS released guidance on Thursday explaining when the temporary 100% deduction for restaurant meals is available and when the 50% limitation on the deduction for food and beverages continues to apply for Sec. 274 purposes (Notice 2021-25). Under Sec. […]

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IRS to recalculate taxes on unemployment benefits; refunds to start in May 2021

IRS to recalculate taxes on unemployment benefits; refunds to start in May 2021 Source; IRS 2021-71, March 31, 2021 WASHINGTON — To help taxpayers, the Internal Revenue Service (IRS) announced today that it will take steps to automatically refund money this spring and summer to people who filed their tax return reporting unemployment compensation before […]

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IRS Criminal Investigation (CI) pledges continued commitment to investigating COVID-19 fraud as CARES Act reaches one-year anniversary

IRS Criminal Investigation (CI) pledges continued commitment to investigating COVID-19 fraud as CARES Act reaches one-year anniversary IR-2021-65, March 25, 2021 WASHINGTON — The Internal Revenue Service’s Criminal Investigation Division (IRS-CI) marks the one-year anniversary of the Coronavirus Aid, Relief and Economic Security (CARES) Act by pledging its continued commitment to investigating COVID-19 fraud. Over […]

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Tax Time Guide: Use the ‘Where’s My Refund?’ tool or IRS2Go app to check tax refund status

IRS:  IR-2021-60   March 18, 2021 Tax Time Guide: Use the ‘Where’s My Refund?’ tool or IRS2Go app to check tax refund status WASHINGTON — The Internal Revenue Service today reminds taxpayers that the most convenient way to check on a tax refund is by using the “Where’s My Refund?” tool at IRS.gov or through the IRS2Go Mobile […]

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Tax Day for individuals extended to May 17: Treasury, IRS extend filing and payment deadline

IRS: IR-2021-59 Tax Day for individuals extended to May 17: Treasury, IRS extend filing and payment deadline WASHINGTON — The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The […]

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2021 Economic Impact Payment Information Available on Get My Payment

2021 Economic Impact Payment Information Available on Get My Payment You can now check the status of your 2021 Economic Impact Payment in the Get My Payment tool. All first and second Economic Impact Payments have been sent and will no longer appear in Get My Payment. If you didn’t get a first or second  payment or […]