Important Pro-Employer Amendments to the CARES Act On June 4, 2020, President Trump signed into law the Paycheck Protection Program Flexibility Act of 2020, which amended the PPP loan provisions of the CARES Act in several helpful ways. These provisions include: Extending the time for which PPP Loan funds can be spent, and still be eligible for forgiveness, to 24 weeks from origination of the loan, or through December 31, 2020, whichever is earlier; Reducing the percentage of PPP Funds …

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With many Americans out of work, or living on reduced income due to the global pandemic, they may no longer be able to pay the IRS if they have outstanding tax liabilities. When an IRS tax debt cannot be paid in full, the IRS provides three alternatives for collecting funds from a taxpayer: (1) Installment Agreement (several versions); (2) Offer in Compromise; or (3) Currently Not Collectible Status. Under an Installment Agreement, the IRS will agree to accept monthly payments …

Now May Be the Best Time to Resolve IRS Tax Debts Read More »

On March 13, 2020, President Donald Trump declared a national emergency pursuant to because of the rapidly spreading coronavirus.  The President instructed the Secretary of the Treasury to provide relief from tax deadlines to Americans, all of whom have been adversely affected by the COVID-19 emergency.  In response, the Department of the Treasury and the Internal Revenue Service issued several notices which, among other things, postpone this year’s tax-filing and payment deadlines from April 15, 2020 to July 15, 2020.  …

Coronavirus Tax Relief for Individuals Read More »

If you have unfiled federal income tax returns, you might receive a personal visit from an IRS employee.  The IRS recently announced that it hired additional Revenue Officers (IRS collection employees) who will be making house calls to taxpayers missing one or more returns in a prior year, and who earn over $100,000.  These unannounced visits began in February 2020. The IRS has already contacted these non-filers by correspondence (generally by mail), notifying them of missing returns, so they should …

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What happens with your cryptocurrency if you get disabled or die?  Cryptocurrency is hard to keep track of during life and at death, and many people do not understand this type of digital asset.  The importance of keeping track of your cryptocurrency during life involves keeping good records of your trading history, choosing the right exchanges and being secure, staying aware of updates on exchange policies and tax law, and tracking wallet addresses for coin, token, and mining transactions.  How …

Do you Need A Cryptocurrency Trust? Read More »

We are frequently asked about the tax consequences of receiving a judgment or settlement in a lawsuit.  Damages received as the result of a breach of contract or property damage have always been, and continue to be, taxable.  For personal injury actions, however, the tax consequences have changed quite a bit over the last 20 years. Prior to 1996, if someone received an award for personal injuries, other than punitive damages, all amounts received were not taxable and/or were excluded …

Taxation of Litigation Awards and Deductibility of Attorneys’ Fees Read More »

You owe the IRS money.  You know you owe the IRS money.  You may have even set up an installment agreement with the IRS that you have been faithfully paying for a while.  But the next thing you know, your phone is blowing up, and your mailbox is overflowing with unsolicited ads from any number of the thousands of “tax resolution” or “tax relief” companies around the country. The messages take many forms.  Some seem to be nice and helpful …

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The IRS recently began sending letters to virtual currency owners, notifying them of potential failures to include, or correctly report, virtual currency transactions on their income tax returns.

Effective July 25, 2019, the Commissioner of the IRS agreed to temporarily suspend its “Passport Certification Program” for all taxpayers with cases pending with the Taxpayer Advocate Service (“TAS”). Generally, the Passport Certification Program authorizes the IRS to notify the State Department of taxpayers with “seriously delinquent tax debt,” which is: A legally enforceable federal tax liability of an individual; which has been assessed; is greater than $52,000; and for which a Notice of Federal Tax Lien has been filed …

Cases Pending with the Taxpayer Advocate Service Are Temporarily Suspended from Passport Certification Read More »

The Taxpayer Advocate Service (TAS), created by Congress in 1996, is designed to be a “safety net” for taxpayers who are experiencing problems with the IRS.  The TAS’s mission is to make sure taxpayers’ rights are protected when they’re up against a government agency that many Americans find intimidating, if not downright terrifying.  Lately, however, TAS’s effectiveness has been hampered by an increasing case load and the resulting delays. Since its inception, TAS has helped millions of taxpayers resolve problems, …

Taxpayer Advocate Service: Excessive Case Load Is Causing Delays Read More »