San Francisco Tax Preparation / CPA: IRS Announces Issuance of Refunds and Recalculation of Taxes

Filed in CCH NEWS FEED by on May 5, 2021

The IRS has announced steps to automatically refund money this spring and summer to taxpayers who filed their tax returns reporting unemployment compensation before the recent changes made by the American Rescue Plan (ARP) ( P.L. 117-2). For those who have already filed, the IRS will do these recalculations in two phases. First, it will start […]

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San Francisco Tax Preparation / CPA: Empowerment Zone Designations Automatically Extended Through 2025

Filed in CCH NEWS FEED by on May 5, 2021

The termination date for an empowerment zone designation under Code Sec. 1391 is generally deemed to extend until December 31, 2025. However, the state or local government that nominated the zone may decline the deemed extension. Empowerment Zone Designation Termination DatesEmpowerment zone designations generally continue until the termination date selected by the government that nominated the zone […]

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San Francisco Tax Preparation / CPA: Child Tax Credit Advance Payments to Begin in July

Filed in CCH NEWS FEED by on May 5, 2021

Speaking before the Senate Finance Committee at an April 13 hearing on the 2021 Filing Season and the 21st Century IRS, IRS Commissioner Charles “Chuck” Rettig said that the IRS fully anticipates the launch of the advance payments of the child tax credit on July 1, the statutory date. This advance payment program was enacted […]

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San Francisco Tax Preparation / CPA: Split-Dollar Insurance Benefits Were Compensation, Not Distribution

Filed in CCH NEWS FEED by on May 5, 2021

Death benefits that an S corporation provided to its sole shareholder under a split-dollar life insurance arrangement were employee compensation rather than a corporate distribution. In reaching this decision, the Tax Court firmly rejected the contrary conclusion reached by the Sixth Circuit Court of Appeals in J.J. Machacek, CA-6, 2018-2 U.S.T.C. 50,447. BackgroundThe taxpayers were a medical doctor […]

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San Francisco Tax Preparation / CPA: Individuals Experiencing Homelessness Can Receive EIPs

Filed in CCH NEWS FEED by on May 5, 2021

Continuing an ongoing effort to help those experiencing homelessness during the pandemic, the IRS has reminded people who do not have a permanent address or a bank account that may still qualify for Economic Impact Payments (EIP) and other tax benefits. While EIPs are made automatically to most people, payments cannot be issued to eligible […]

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San Francisco Tax Preparation / CPA: Deposit Penalty Relief Extended for COVID-19 Employer Credits

Filed in CCH NEWS FEED by on May 5, 2021

The IRS has extended the penalty relief provided in Notice 2020-22, I.R.B. 2020-17, 664, for failure to deposit employment taxes, to eligible employers that reduce their required deposits in anticipation of the following credits: the paid sick and family leave credits under the Families First Coronavirus Response Act (Families First Act) ( P.L. 116-127), as amended by […]

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