Tax preparers Feed

The Biden Administration's proposal to up the Internal Revenue Service budget so it could go after more rich tax cheats got a lot of attention. But the White House also wants to cut down on some audits. That, according to the president's American Families Plan, can be accomplished by giving the IRS more oversight of unregulated tax preparers. The audit/tax pro regulation connection is noted in a White House fact sheet hyping the proposal: These Tax returns prepared by certain types of preparers have high error rates. These preparers charge taxpayers large fees while exposing them to costly audits. As... Read more →


One of my favorite Lyle Lovett songs is "What Do You Do/The Glory of Love," where the Houston singer-songwriter shares the vocal spotlight with the incomparable Francine Reed. The lyric that initially caught my ear and makes me chuckle every time I hear it goes, "If you make all that money man, make damn sure it shows." That's a great exchange in a duet, but such showiness raised suspicions about a Dallas-area accountant accused of defrauding the COVID-19 Paycheck Protection Program (PPP). PPP fraud guilty plea: Steven Jalloul was indicted in September 2020 on charges he orchestrated a fraudulent scheme... Read more →


Photo by ivan sellar from Pexels You're finally ready to give up being the boss. Or maybe you got a great offer for your business. Or maybe the COVID-19 pandemic did a number on you and your company. Whatever your reason, you've decided it's time to close your company's doors. Make sure that during that process, you take taxes into account. The Internal Revenue Service offers these tips to business owners who've decided to call it quits. File the appropriate final return: This filing is for the year you close your business. The type of return you file, and the... Read more →


Photo by Liza Summer from Pexels Everyone needs help now and then. That truism especially applies to filing taxes. But not everyone can afford to hire a tax professional. That's where the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs come into play. For decades, these two programs have provided free tax preparation and filing assistance during the annual filing season to millions of lower- and middle-income taxpayers, as well as elderly filers. The Internal Revenue Service just announced its financial support for 334 VITA and TCE programs in 2022. Now the agency is looking... Read more →


Free tax-preparation and filing help is offered ever tax season through groups community groups nationwide, like this Volunteer Income Tax Assistance (VITA) program run by the Summit-Medina, Ohio, United Way. As the COVID-compromised 2020 and 2021 tax filing seasons demonstrated, most taxpayers needed some help to make sure they got all the tax breaks they were entitled to, as well as just file their annual returns. That need for tax assistance isn't going away, even if we do (fingers and toes tightly crossed) get to a more normal tax season next year. And volunteers who've received the Internal Revenue Service... Read more →


The Great Resignation created by folks deciding not to return to their jobs after extended COVID-19 absences has led to a lot of new businesses. That means there a many new bosses out there, most of them dealing with a different part of the Internal Revenue Service for the first time. As business owners, they potentially face new types of taxes. Exactly which taxes depend largely on how their new company is established. That's why selection of a business entity is a major tax decision. Business entity options: As part of 2021's National Small Business Week, sponsored annually by the... Read more →


via GIPHY On a visceral financial level, we all hate paying taxes. But what we hate almost as much is that the tax laws often seem overly complicated or just plain goofy. Take estimated taxes. These are four extra payments that the Internal Revenue Service and many states require taxpayers to make to cover the taxes due on earnings that aren't subject to paycheck tax withholding. Straightforward enough, right? Until it comes to payment deadlines. Even though there are, in most cases, four of them and they're called quarterly estimated tax payments, the IRS uses a calendar that's a bit... Read more →


A distinctive signature has long been a mark of individuality. Take a look at former Treasury Secretary Jack Lew's original loops or Donald J. Trump's spikes. But with cursive handwriting being dropped from many schools' curricula, the chance of seeing someone's John Hancock rival, well, U.S. Declaration of Independence signer John Hancock's historic mark are vanishing. And the IRS is helping erase handwritten signatures by allowing more forms to be electronically signed. One non-medical COVID-19 side-effect will have a long-lasting side effect on everyone. More electronic transactions in our every-day lives. That includes our tax lives. About this time last... Read more →


What's the result when the worst things happen? Too often, it's terrible people taking advantage of good people. This occurs with alarming regularity in the tax world following tragedies and disasters. Con artists use horrible events to convince compassionate individuals to donate to groups that will help out the victims. What really happens all too often is the caring donors become victims, too. Fake charities are just one type of scam in today's third installment of the IRS' Dirty Dozen for 2021. This category of tax ruses in which dishonest people trick others into doing something illegal often includes fraudulent... Read more →


If a new piece of legislation is enacted, these two youngsters might bring their classroom enthusiasm to the accounting profession. Tax professionals have been unsung heroes for the last two tax filing seasons. They've dealt with complicated and often last-minute tax law changes created to deal with the COVID-19 pandemic's economic problems. Not only did they have to decipher and apply the changes, tax pros had to explain them to their clients and, in many cases, hand hold taxpayers through the process more than usual. Plus, this all happened as tax deadlines were upended by the coronavirus and multiple major... Read more →


Crayons aren't just for kids any more. Adult coloring books abound, including one created just for accountants. With Tax Day 2017 just days away, perhaps no one is feeling the pressure more than tax professionals. Tax preparers, for the second consecutive filing season, are dealing not only with the regular rush of taxes, but also with new COVID-19 pandemic prompted laws. Multiply that by how many clients they have, add what's happening in their (and their clients') lives, and the solution equals, among other things, stress that's off the charts. Helpful timeouts: While it might seem counter intuitive to those... Read more →


One of the many reasons that people hate taxes is that after the hassle of filing, then comes the fear that a Form 1040 mistake will mean an audit. The sort-of good news for taxpayers is that the Internal Revenue Service hasn't been auditing as many people in recent years. The agency has had other things to worry about, like doing its myriad jobs with fewer staff and less money. Then there's COVID-19, with added pandemic payments that the IRS is tasked with distributing. Things could be changing, though. More people are getting vaccinated, meaning the end of the coronavirus... Read more →


Rather than heavy equipment, the IRS needs legislative and fiscal help to close its $1 trillion Tax Gap. If you've thought the $441 million figure that the Internal Revenue Service has for years cited as the Tax Gap is too low, you are not alone. None other than the IRS commissioner agrees that there is more tax money that's owed than the agency has been able to collect. A whole lot more. At an April 13 hearing before the Senate Finance Committee, IRS Commissioner Charles Rettig estimated that the actual Tax Gap could be as much as $1 trillion. That's... Read more →


This year's annual federal tax return filing deadline has been moved from April 15 to May 17. Yep, for the second consecutive year, our 1040 forms won't have to be in or on their way to Uncle Sam's tax collector until after the traditional deadline. And yes, COVID-19 is the reason, largely because of tax law changes and backlogs related to the pandemic. But many of those who had urged an automatic delay for Tax Day 2021 are not impressed by the IRS action. Sure, we now have a bit more time to file our personal returns, but little more.... Read more →


The Internal Revenue Service is still working its way through millions of pieces of correspondence delivered last year, so the last thing it needs is more. But it's getting it. Federal lawmakers and organizations representing members of the tax community have mailed letters over the last week to the U.S. Treasury and IRS urging the delay this year of April's usual Tax Day. April 15 is still THE day: Tax returns so far are still due on April 15, the traditional filing deadline. And the IRS Commissioner Charles Rettig is holding to that date. For now. During a March 3... Read more →


The tax filing season clock is ticking, but will the alarm go off on April 15 as usual? That's the IRS plan for now, but some in Congress and the tax community would like Uncle Sam to extend the 2021 Tax Day deadline like happened last year. The Internal Revenue Service is insistent that despite a later than normal opening of the 2021 tax filing season, it will end as usual on April 15. Some lawmakers and members of the tax community, however, think this filing season needs to follow the 2020 example and be extended beyond the usual mid-April... Read more →


Just can't bring yourself to do your taxes? Don't worry. There's no rush (yet). And there are some good reasons to wait a bit before finishing your Form 1040. The 2021 tax filing season is finally underway. The Internal Revenue Service started processing returns on Friday, Feb. 12. A lot of the 1040 forms actually had been submitted electronically weeks earlier, and were just waiting for Uncle Sam to accept them. This is not unusual. Millions of taxpayers file as early as possible, with good reason, every year. But there's something to said for those of us who wait. Here... Read more →


Tax Season 2021 is finally here! The Internal Revenue Service has started accepting tax returns and, more importantly, is now processing the filings as of today, Friday, Feb. 12. Millions have already filed. Most of them used tax software, either on their own or through the Free File program, which the IRS and its tax prep partners opened up a month ago. Those 1040 forms have been on hold. Now they've been transmitted to the IRS. Others, however, still have some work to do. We're waiting for some tax statements to straggle in, either to our snail mail or email... Read more →


Tax preparers nationwide already are working on clients' returns. Crooks also are working to steal info on and from those tax professionals. The Internal Revenue Service won't start accepting and processing 2020 tax returns until Feb. 12. Tax professionals, however, have been working of their clients returns since the new year arrived. That means tax criminals also doing their so-called jobs. The Internal Revenue Service, state tax agencies and tax industry today announced that there's a new scam email being sent to tax professionals. The phishing message impersonates the IRS and attempts to steal Electronic Filing Identification Numbers (EFINs). While... Read more →


This might be a first. The Internal Revenue Service essentially is going to be every taxpayers' valentine this year. No, it's not because we love paying our taxes or the agency that collects them so much. It's because the IRS officially starts accepting and processing our 2020 tax returns on the Friday before St. Valentine's Weekend. That means many of us will be consumed by the Internal Revenue Code as we work to complete our 1040 forms and get them to the IRS ASAP. For many, the target date is the Feb. 12 official opening of this tax season. So... Read more →


The Earned Income Tax Credit (EITC) is the federal government's largest refundable federal income tax credit for low- to moderate-income workers. In 2020, more than 25 million taxpayers received over $62 billion in EITC. The average EITC amount received last year was $2,461 per return. The EITC also is regularly overlooked. The Internal Revenue Service estimates that one of five eligible taxpayers do not claim the credit. That oversight could change this filing season. The COVID-19 pandemic pushed millions of American workers into lower income brackets last year as their work was reduced. That could make them eligible for this... Read more →