City Wide Tax

09/21/2021

Deadline approaches for taxpayers who requested extensions to file 2020 tax returns
Tax pros: Remind your clients who requested extensions to file their 2020 tax returns of the upcoming Oct. 15 due date. People who asked for an extension should file on or before the extension deadline to avoid the penalty for filing late.

09/16/2021

IRS: Families now receiving September Child Tax Credit payments

WASHINGTON — The Internal Revenue Service and the Treasury Department announced today that millions of American families are now receiving their advance Child Tax Credit (CTC) payment for the month of September.

This third batch of advance monthly payments, totaling about $15 billion, is reaching about 35 million families today across the country. The majority of payments will be issued by direct deposit. Under the American Rescue Plan, most eligible families received payments dated July 15 and Aug. 13, along with today’s Sept. 15 payment. Future payments are scheduled for Oct. 15, Nov. 15 and Dec. 15. For these families, each payment is up to $300 per month for each child under age 6 and up to $250 per month for each child ages 6 through 17.

Here are further details on these payments:

Families will see the direct deposit payments in their accounts starting today, Sept. 15. Like the prior payments, the vast majority of families will receive them by direct deposit.
For those receiving payments by paper check, be sure to allow extra time, through the end of September, for delivery by mail. Those wishing to receive future payments by direct deposit can make this change using the Child Tax Credit Update Portal available only on IRS.gov. To access the portal or to get a new step-by-step guide for using it, visit IRS.gov/childtaxcredit2021. A change made by 11:59 p.m. Eastern Time on Oct. 4 will apply starting with the October payment.

Unenroll if you don’t want to get advance Child Tax Credit payments, check if you’re enrolled and update your information for the payments.

09/11/2021

RS: Cost of home testing for COVID-19 is eligible medical expense; reimbursable under FSAs, HSAs

WASHINGTON – The Internal Revenue Service reminds taxpayers today that the cost of home testing for COVID-19 is an eligible medical expense that can be paid or reimbursed under health flexible spending arrangements (health FSAs), health savings accounts (HSAs), health reimbursement arrangements (HRAs), or Archer medical savings accounts (Archer MSAs). That is because the cost to diagnose COVID-19 is an eligible medical expense for tax purposes.

The IRS also reminds taxpayers that the costs of personal protective equipment, such as masks, hand sanitizer and sanitizing wipes, for the primary purpose of preventing the spread of COVID-19 are eligible medical expenses that can be paid or reimbursed under health FSAs, HSAs, HRAs, or Archer MSAs. Additional information is available on IRS.gov.

For more information regarding details and requirements on deductibility of medical expenses, taxpayers can review Can I Deduct My Medical and Dental Expenses? and Publication 502, Medical and Dental Expenses.

07/10/2021

1. News from the Justice Department’s Tax Division

A Maryland return preparer pleaded guilty to conspiring to defraud the United States and to assisting in the preparation of a false tax return. According to court documents and statements made in court, Lenore Worthy provided tax return preparation services in Temple Hills under several business names, including United Tax Services LLC. For the tax years 2012 through 2018, Worthy and her co-conspirators fraudulently inflated client refunds by adding false deductions and business losses. The IRS later expelled Worthy and United Tax Services from the IRS e-file program after Worthy prepared a false return for an undercover IRS agent. Worthy then began using another co-conspirator’s e-filing credentials to continue preparing clients’ returns. Worthy faces a maximum penalty of eight years in prison and a period of supervised release, restitution and monetary penalties.

03/29/2021

People who need aid covering the financial costs of funerals for loved ones who died of COVID-19 may be eligible for up to $7,000 in assistance.

03/21/2021

The first batch of payments primarily went to eligible taxpayers who provided direct deposit information on their 2019 or 2020 returns, including people who don’t typically file a return but who successfully used the Non-Filers tool on IRS.gov last year.

03/18/2021

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 IRS will be providing formal guidance in the coming days.

03/18/2021

02/06/2021

Educators can now deduct out-of-pocket expenses for COVID-19 protective items
Eligible educators can deduct unreimbursed expenses for COVID-19 protective items to stop the spread of COVID-19 in the classroom. COVID-19 protective items include, but are not limited to:

Face masks
Disinfectant for use against COVID-19
Hand soap
Hand sanitizer
Disposable gloves
Tape, paint or chalk to guide social distancing
Physical barriers (for example, clear plexiglass)
Air purifiers
Other items recommended the Centers for Disease Control and Prevention recommends that individuals use for the prevention of the spread of COVID-19
Rev. Proc. 2021-15 provides guidance for educators and their expenses under the COVID-related Tax Relief Act of 2020.

01/29/2021

Congress has allocated another $40,000,000,000 in EIDL grants (advances) in the new stimulus bill. Get advice on whether you qualify for these grants with an extended deadline.

01/26/2021

🤚Not exactly legal