ELK CPA Tax Resolution & Compliance

07/25/2023

The Internal Revenue Service will end, except in very limited circumstances, the practice of making unannounced visits to taxpayers’ homes and businesses. "This change is effective immediately," IRS Commissioner Daniel Werfel said during a July 24, 2023, teleconference with reporters.

Unannounced visits will be replaced with scheduled visits. If the IRS needs to meet with a taxpayer, that taxpayer will receive an appointment letter, known as a 725-B letter, to schedule a time for a revenue officer to meet with the taxpayer.

03/06/2023

The IRS has issued a consumer alert to warn taxpayers of new scams that urge people to use wage information on a tax return to claim false credits in hopes of getting a big refund. A scheme circulating on social media encourages taxpayers to use tax software to manually fill out Form W-2, Wage and Tax Statement, and include false income information. In this scheme, scam artists suggest people make up large income and withholding figures as well as the employer it is coming from.

02/10/2023

Following IRS system updates, taxpayers filing amended returns Forms 1040X electronically can now enjoy the same speed and security of direct deposit as those filing an original Form 1040 tax return.

02/07/2023

The IRS has announced special Saturday hours for the next four months at Taxpayer Assistance Centers (TACs) across the country to improve service this tax season. The special Saturday availability across the nation will take place from 9 a.m. to 4 p.m., on February 11, March 11, April 8 and May 13. No appointments required.

01/24/2023

Due to tax law changes such as the elimination of the Advance Child Tax Credit and no Recovery Rebate Credit this year to claim pandemic-related stimulus payments, many taxpayers may find their refunds somewhat lower this year.

Alabama, California and Georgia storm victims now have until May 15 to file various federal individual and business tax returns and make tax payments.

01/19/2023

Form 1099-K
The requirements for issuing a Form 1099-K have been greatly expanded for 2022. The form is now required for third-party settlement networks if over $600 has been paid in business transactions during the year. Taxpayers may receive 1099-Ks for personal transactions where the issuer has not been able to distinguish personal from business transactions. Taxpayers may also receive 1099 forms from both the seller and the third-party payment processor for the same transaction. Taxpayers may need to explain on the tax return the 1099-Ks that have been received that have not been reflected on the tax return.

11/05/2021

A tax provision in the Build Back Better Act could provide a significant break to the wealthy individuals congressional Democrats have targeted to help pay for the $1.75 trillion in new spending on social programs. The current SALT (State And Local Tax) cap allows up to $10,000 in state and local taxes to be deducted from federal taxes. H.R. 5376 increases that to $72,500. The result would be a $30 billion net direct tax cut for those in the top 5 percent.... Stay tuned.

11/04/2021

A temporary law allows taxpayers to claim a limited deduction on their 2021 federal income tax returns for cash contributions made to qualifying charitable organizations. Individual tax filers, including married individuals filing separate returns, can claim a deduction of up to $300 for cash contributions made to qualifying charities during 2021 under this provision. Married individuals filing joint returns can now claim a maximum deduction of $600.
The IRS Tax Exempt Organization Search tool can help check the status of a charity.

10/20/2021

The Treasury stated that the Administration’s compliance proposals will make transformative investments in the IRS. The proposal is designed to collect taxes already owed under current law. Financial institutions and banks will add just two additional numbers to the information that they already supply to taxpayers and the IRS: the total amount of funds deposited into the account and the total amount withdrawn over the course of a year.

03/24/2021

The IRS has updated its instructions on reporting unemployment exclusions. If a taxpayer’s modified adjusted gross income (AGI) is less than $150,000, the American Rescue Plan enacted on March 11, 2021, excludes from income up to $10,200 of unemployment compensation paid in 2020, which means you do not have to pay tax on unemployment compensation of up to $10,200. If a taxpayer is married, each spouse receiving unemployment compensation does not have to pay tax on unemployment compensation of up to $10,200.

01/28/2021

Millions of Americans received unemployment compensation in 2020, many of them for the first time. This compensation is taxable and must be included as gross income on their tax return.

01/26/2021

In the coming weeks, taxpayers with an account on IRS.gov/account will be able to view the amounts of the economic impact payments they received including the latest information on their federal tax account. Those without an account can register here. https://www.irs.gov/individuals/secure-access-how-to-register-for-certain-online-self-help-tools

Find out how to register with Secure Access to use IRS self-help tax tools like Get Transcript, Get an IP PIN, e-Services and View Your Account.