Relevant, timely, professional services and products
IRS Tax Tip 2021-95, July 1, 2021 It’s important for all taxpayers to know their rights in case they need to work with the agency on a tax matter. The Taxpayer Bill of Rights, lists and defines 10 fundamental rights of every taxpayer. Included on that list is the Right to Quality Service: Taxpayers have the …
Understanding the taxpayer’s right to quality service Read More »
IRS Tax Tip 2021-94, June 30, 2021 Many people are engaged in hobby activities that are also a source of income. For example, some people started selling handmade items during the pandemic. These people must report this income on their tax return. A hobby is any activity that a person pursues because they enjoy it …
Here’s what taxpayers need to know about paying taxes on their hobby activities Read More »
COVID Tax Tip 2021-93, June 29, 2021 Employers who are filing Form 7200, Advance Payment of Employer Credits Due to COVID-19 should read the instructions carefully and take their time when completing this form to avoid mistakes. Using a reputable tax preparer – including certified public accountants, enrolled agents or other knowledgeable tax professionals – can also help avoid errors. Mistakes …
Errors employers should avoid when requesting advance payment of employer credits Read More »
COVID Tax Tip 2021-92, June 28, 2021 The IRS Non-filer Sign-up Tool offers a free and easy way for eligible people who don’t normally have to file taxes to provide the IRS the basic information needed – name, address, and Social Security numbers – to figure and issue advance child tax credit payments. Often, these are individuals and …
IRS Tax Tip 2021-91, June 24, 2021 Tax transcripts are used for a variety of things, like applying for a mortgage or a student loan. Taxpayers order a tax transcript on IRS.gov. They can also learn about the different types of transcripts available from the IRS. Order a tax transcript Taxpayers can request a transcript, …
IRS.gov should be a taxpayer’s first stop for their tax transcript Read More »
COVID Tax Tip 2021-90, June 23, 2021 Tax credits and deductions can mean more money in a taxpayer’s pocket. Most people only think about this when they file their tax return, but early planning can help make filing their 2021 tax return easier. Taxpayers should be prepared to claim tax credits and deductions. Here are …
COVID Tax Tip 2021-89, June 22, 2021 Year-round tax planning is for everyone. An important part of that is recordkeeping. Gathering tax documents throughout the year and having an organized recordkeeping system can make it easier when it comes to filing a tax return or understanding a letter from the IRS. Good records help: Identify sources …
The first step of good tax planning is good recordkeeping Read More »
IRS Tax Tip 2021-88, June 21, 2021 By law, business taxpayers who pay or receive nonemployee compensation of $600 or more must report these payments to the IRS. They do this using Form 1099-NEC, Nonemployee Compensation. Generally, payers must file Form 1099-NEC by January 31. For 2021 tax returns, there is no automatic 30-day extension to …
Businesses must report nonemployee compensation and backup withholding Read More »
COVID Tax Tip 2021-87, June 17, 2021 The IRS is reviewing tax returns filed before the American Rescue Plan of 2021 became law in March to determine the correct taxable amount of unemployment compensation and tax. For eligible taxpayers, this could result in a refund, a reduced balance due or no change to tax. IRS …
Taxpayers may receive a refund for taxes paid on 2020 unemployment compensation Read More »
IRS Tax Tip 2021-86, June 16, 2021 Running a business with employees can be hard work. One way business owners can make things a little easier on themselves is by filing payroll and employment taxes electronically. There are several benefits to filing these forms electronically: It saves time. It’s secure and accurate. The filer gets …
Filing payroll taxes electronically makes good business sense Read More »