The U.S. Supreme Court agreed to hear the case of CIC Services vs. the IRS, where CIC Services had challenged the IRS notice 2016-16 on its micro-captive transactions where the IRS had identified certain micro-captive transactions as having potential for tax evasion or avoidance. The IRS had also labelled these as “transactions of interest” reportable…
Due to the coronavirus pandemic, even taxpayers who usually filed a paper return are now forced to file it digitally. Though e-filing is faster and more convenient than paper filing, those who are not aware of tax scams such as identity theft are more vulnerable than ever when filing digitally. Now that the April 15th…
The deadline to file and pay federal income taxes has been extended to July 15, 2020 due to the coronavirus outbreak. With this extension, those who have not yet filed may consider the options they have to pay their taxes. Taxpayers can pay their tax bill using debit card or credit card. However, employers’ federal…
The Economic Impact Payment, also called stimulus payments, are automatically paid to eligible US residents through direct deposit and the mail. The IRS has started to mail $1,200 stimulus checks. According to the Taxpayer Advocate Service, “The IRS is playing a central role in administering the Coronavirus Aid, Relief, and Economic Security (CARES) Act and…
The IRS announced in a notice that the optional 2020 standard mileage rate for business use will be down to 57.5 cents per mile from the earlier 58 cents per mile, from January 1, 2020. This will include costs of operating an automobile (including cars, vans, pickups, and panel trucks) for charitable, medical and moving…
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was introduced to counter the economic damage caused by the coronavirus pandemic. This $2 trillion stimulus package focuses on financially supporting individuals, businesses, state and local governments, workers, independent contractors, and hospitals. The package also includes relief for savings and retirement benefits of individuals. This section…
There is uncertainty about how long the coronavirus will keep businesses paralyzed and that uncertainty is greatly impacting businesses. Many businesses struggling to survive will need to cut costs to stay afloat, which can mean reductions in employees. In order to help businesses cope, the IRS has introduced three tax credits for employers that will…
Millions of Americans have received their stimulus checks. In the first four weeks of the program, approximately 130 million individuals received stimulus payments worth more than $200 billion. California received the largest payment followed by Texas. Though most taxpayers automatically receive their stimulus check, but if you think you are eligible and haven’t yet received…
The coronavirus is not only impacting our health and lifestyle, but also our finances. With the pandemic still raging on, those who invested in municipal bonds may be uncertain about how much return they would receive for their investment. Investors use many ways to increase wealth and save taxes. Since municipal bonds are less risky…
The IRS is calling back its employees for work but without providing them with protective masks against the coronavirus. The agency has 74,454 full-time employees (as of 2019), out of which they need about 10,000 to be back in office for certain critical services. It’s a faint relief that the IRS is asking for volunteers….
