CCH NEWS FEED
CCH news feed posts
San Francisco Tax Preparation / CPA: Individuals Experiencing Homelessness Can Receive EIPs
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 […]
San Francisco Tax Preparation / CPA: Window Closing on Nonfilers’ 2017 Refunds
The IRS announced that unclaimed income tax refunds worth more than $1.3 billion await an estimated 1.3 million taxpayers who did not file a 2017 Form 1040. Most of these taxpayers must file by May 17, 2021, to claim a refund. “The IRS wants to help taxpayers who are due refunds but haven’t filed their […]
San Francisco Tax Preparation / CPA: Split-Dollar Insurance Benefits Were Compensation, Not Distribution
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 […]
San Francisco Tax Preparation / CPA: IRS Announces Issuance of Refunds and Recalculation of Taxes
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 […]
San Francisco Tax Preparation / CPA: Empowerment Zone Designations Automatically Extended Through 2025
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 […]
San Francisco Tax Preparation / CPA: Child Tax Credit Advance Payments to Begin in July
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 […]
San Francisco Tax Preparation / CPA: Updated Instructions on Reporting Unemployment Exclusion
The IRS has updated its instructions for reporting unemployment exclusions for 2020. If an individual taxpayer’s modified adjusted gross income (AGI) is less than $150,000, the American Rescue Plan ( P.L. 117-2), enacted on March 11, 2021, excludes from income up to $10,200 of unemployment compensation paid in 2020, which means the individual does not have […]
San Francisco Tax Preparation / CPA: IRS Answers FAQs on RRCs
The IRS has been mailing letters to some taxpayers who claimed the 2020 recovery rebate credit (RRC) and may be getting a different amount than they expected. The IRS reminders taxpayers that the first and second Economic Impact Payments (EIP) were advance payments of the 2020 credit. Most eligible people already received the first and […]
San Francisco Tax Preparation / CPA: IRS Issues FAQs on Reporting of COVID-19 Emergency Financial Aid Grants by Students and Higher Education Institutions
The IRS has issued FAQs on how students and higher education institutions should report pandemic-related emergency financial aid grants. Emergency financial aid grants made by a federal agency, state, Indian tribe, higher education institution or scholarship-granting organization (including a tribal organization) to a student because of an event related to the COVID-19 pandemic are not included in […]
San Francisco Tax Preparation / CPA: IRS Updates Audit Techniques Guide on Retail Industry Examinations
The IRS has updated an Audit Techniques Guide (ATG) on its website that addresses conducting income tax examinations in the retail industry. An ATG focuses on developing highly trained examiners for particular market segments by presenting examination techniques, common and unique industry issues, business practices, industry terminology and other information. The ATG is available on […]
