The Basics of FATCA and Form 8938
The Foreign Account Tax Compliance Act (FATCA) generally requires that foreign financial institutions and certain other nonfinancial foreign entities report on the foreign assets held by their U.S. account holders or be subject to withholding on relevant payments. Taxpayers must use Form 8938, Statement of Specified Foreign Financial Assets, to report specified foreign financial assets […]
Learn About an IRS Payment Plan
If you’re a qualified taxpayer or an authorized representative through a power of attorney, you can apply online for a payment plan, which will include an installment agreement to pay off your balance over time. Your specific tax situation will determine which payment options are available. These include: Full payment. A short-term payment plan for […]
IRS Offers Identity Protection PIN
The IRS can now give eligible taxpayers an “IP PIN,” a six-digit code to help prevent the misuse of Social Security numbers on fraudulent federal income tax returns. As the IRS explains, this PIN helps the agency verify a taxpayer’s identity and accept his or her electronic or paper tax return. Not everyone can get […]
IRS Issues Final Regs on Meals and Entertainment
The IRS has noted that the 2017 TCJA generally eliminated the deduction for any expenses related to activities typically considered entertainment, amusement or recreation. However, taxpayers may still deduct business expenses related to food and beverages if certain requirements are met. And that distinction has led to a lot of misunderstandings. The IRS resolves much […]
When Identity Theft Hits Your Taxes
When someone uses your stolen personal information — your Social Security number, for example — to file a tax return claiming a fraudulent refund, that’s considered tax-related identity theft. How do you know if you’ve been a victim? It often starts with a letter from the IRS saying there’s a problem with your return. Here […]
IRS Gives Break on Flexible Spending Plans
The IRS has granted relief for 125 cafeteria plans, health flexible spending arrangements and dependent care assistance programs. In Notice 2020-29, the IRS has: Extended claims periods for taxpayers to apply unused amounts remaining in a health FSA or dependent care assistance program for expenses incurred through December 31, 2020. Expanded the ability of taxpayers to […]
