Financial, Tax, and Family Office Services
The IRS has decided to forgive failure-to-pay penalties on most of the income tax returns for 2020 and 2021. As an example: You filed an extension for your 2020 return April 15, 2021, then filed and paid the balance due August 15, 2021. The balance due should have been paid April 15, but since you …
Stated purpose: to strip US shell companies of anonymity that can hide financial activity. Procedure: Registering Limited liability companies, corporations, partnerships, and other closely held entities with a government database. Process: Not yet defined, as the forms have not been finalized. Generally, the idea is good. Until CTA is in effect, someone can form a …
The Corporate Transparency Act, aka The Next Big Compliance Nightmare Read More »
This has already been a complex year, and it’s only March. Here are some of the major changes. FILING DEADLINES: For individuals and businesses in Texas, income tax returns which are normally due on March 15th and April 15th are automatically extended until June 15th this year as a result of the Presidentially-declared natural disaster …
Today the IRS announced that due dates and payments for returns normally due March 15th or April 15th (basically all returns) are extended until June 15th this year. The press release did specifically reference March 15th deadlines, and indicated that no extension form is required for this due date. You can read the full notice …
The First Train Wreck of 2021 Filing Season (A Big One) Tucked away on line 30 (page 2) of your 2020 return (due April 15, 2021) is the reconciliation of the advance payments you may have received last year. It’s going to generate a lot of headaches this year. Remember the $1200 per adult and …
First Train Wreck of 2021 Individual Filing Season (and it’s a big one!) Read More »
This happened to one of my clients. In ordinary years ( “ordinary” hereinafter defined as “not 2020”) rejection of an otherwise-correct return usually means identity theft, but this year, we have another twist. If you called the IRS to inquire about your stimulus check, the IRS systems show a return was filed with adjusted gross …
Did your 2019 Tax Return get rejected by the IRS? Read More »
I’ve received several calls from a computer that says “This is IRS. We have been trying to reach you. This is your final notice before filing suit.” The voice sounds very close to the voice on the IRS’s menu – the voice that thanks you for calling and advises you how long your estimated wait …
IRS Penalties and interest – The Very Basics for Individual Taxpayers Interest is the easiest. For the past several years, the interest rate has been 3%, per annum, compounded daily, for both underpayments and overpayments. There are three types of penalties most taxpayers will see: Underpayment of estimated tax Failure to file …