Turning in U.S. tax cheats and getting paid for it
Tax revenue is critical. It's even more important during a global pandemic when governments worldwide are facing shortfalls due to COVID-19 economic effects. So it's no surprise that tax officials are taking closer looks at possible tax scofflaws. And in many instances, they're getting help from their citizenry. Recent cases in point…
COVID-created tax refund interest payments going to nearly 14 million filers
Almost 14 million U.S. taxpayers are getting a few extra dollars from Uncle Sam. If you're one of them, you can thank the Internal Revenue Service and the COVID-19 changes to the 2020 filing season. Pandemic tax season timing tweaks mean that these regular refund recipients also will be getting…
IRS stops sending nonpayment tax notices until it clears COVID snail mail backlog
The Internal Revenue Service heard the complaints about incorrect unpaid tax notices and has acted. It announced yesterday, Aug. 21, afternoon that it is temporarily halting the mailing of three nonpayment notices. The decision came on the heels of public outcry, some of it among taxpayers and the professional tax…
Get government benefits? Have kids? You get one more chance to claim added COVID cash
Attention parents who rely on government program payments to help care for your families. If you missed out on the extra $500 per dependent child coronavirus economic impact payment (EIP), the Internal Revenue Service is giving you one last chance to get this supplemental money this year. The tax agency…
Self-employed left out of Trump payroll tax holiday…for now
Being your own boss is a challenge even in good times. Now, with the COVID-19 pandemic disrupting your personal and professional life, keeping your individual enterprise operating is particularly dicey. So you probably were thrilled when Donald J. Trump took executive action last weekend to establish a temporary payroll tax holiday. Since…
Bad tax preparers again make IRS’ Dirty Dozen scam list
If tax it the time of coronavirus taught us anything, it's that tax professionals are indispensable. On the heels of getting a handle on the 2017 tax reform changes, tax pros this filing season were handed even more jobs. They helped people understand COVID-19 economic relief payments, what tax tasks were delayed…
It’s time for post-filing tax record keeping
It's been almost a week since Tax Day 2015. That's why today's Tax Form Tuesday is celebrating Form 1040. Actually, this week's feature includes not just the actual tax return you recently sent to the Internal Revenue Service, but also the many forms and schedules that accompanied your return, plus all the…
What a COVID-related payroll tax cut could mean to you now and your retirement later
The White House has dropped its push for a payroll tax cut as part of the next round of COVID-19 relief. Although Donald Trump cited Democrats' objections to the payroll tax cut, top Senate Republicans also disliked the idea, seeing it as too expensive as they struggle to craft a relief version…
Form W-4 Employee’s Withholding Certificate Redesigned for 2020
Every employer must withhold (and later deposit) income tax from wages paid to each employee using the computational procedures and tables prescribed by the IRS. To calculate the amount of income tax to withhold, the employer must have a properly completed Form W-4 (Employee's Withholding Certificate) on file for each…
New Form 1099-NEC (Nonemployee Compensation) for 2020
Beginning with reporting for the 2020 tax year, nonemployee compensation (NEC) will be reported in box 1 of Form 1099-NEC (Nonemployee Compensation). For 2019 and prior years, NEC is reported in box 7 of Form 1099-MISC (Miscellaneous Income). Statements to Recipients If Form 1099-NEC is required to be filed, the…
