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 […]
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 […]
CARES Act Adds Flexibility to Net Operating Losses
Revenue Procedure 2020-24 provides guidance to taxpayers with net operating losses that are carried back under the CARES Act by providing procedures for: Waiving the carryback period in the case of a net operating loss arising in a taxable year beginning after Dec. 31, 2017, and before Jan. 1, 2021. Disregarding certain amounts of foreign income […]
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 […]
Physician Practices and Their Tax Issues
Historically, physician practices were set up as sole proprietorships or partnerships. As the business of medicine and the liability risks grew more complex, however, new entities were created. Medical practices now have a number of legal organization form options, including; Sole proprietorship. General partnership. Limited partnership. C corporation. S corporation. Limited liability company (LLC). Limited […]
ACCOUNTING METHOD CHANGES: CASH METHOD OF ACCOUNTING AND EXPENSING OF INVENTORY
Among the many significant changes made by the Tax Cuts & Jobs Act of 2017 (TCJA) were several accounting method changes available for qualifying businesses. Two key changes include the expansion of the availability of the cash method of accounting for tax purposes and the immediate expensing of certain inventory costs. Cash Method of Accounting […]
