Category: Tax

Tax refunds are slow coming to paper filers for a second year

In 2020, pandemic-related factors significantly delayed refunds due to taxpayers.  Those filing 2021 taxes may find an unwelcome repeat of last year's delay, as it could again take six months or more for taxpayers who filed paper returns to receive their...

Caretakers may exclude certain Medicaid waiver payments from income

Family members who care for a disabled relative in their shared home, and receive Medicaid payments to provide that care, may qualify for an exclusion of certain Medicaid waiver payments on their gross income calculation. IRS Notice 2014-7 provides guidance on...

Employer-provided tuition assistance programs must meet requirements

An employer-provider educational assistance program is a separate written plan that provides educational assistance only to employees*. For Employers: The program qualifies only if all of the following tests are met: The program doesn't favor highly-compensated employees**. To determine whether...

Tax consequences of compensation clawbacks for issuers and executives

Corporate executives with lucrative contracts can be subject to "clawbacks", or reclaiming of already-paid compensation, for violating company policy, agreement, or law.  This can raise questions about the tax implications for both the company who issued the clawback and the executive...

New IRS proposal could affect timing of inherited IRA distributions

If you've inherited an IRA in 2020 or later, take note: the wait-until-the-tenth-year approach to distributing the account might no longer work.  Most have interpreted the IRS' regulation of the 2019 SECURE Act to mean that an IRA inherited in...

SR Client Question: Is a salary advance taxable?

Some employers offer employees the option of requesting a salary advance ahead of the standard payment date; for instance, the paycheck would be issued on the first of the month, as opposed to the standard payday of the 15th of...

Employee Retention Tax Credits still available for some businesses

Your business may be eligible for an employee retention tax credit, though the program expired in September. There’s still time to file a claim for up to $28,000 per employee, even if you received a PPP loan. Certain startups and...

Some IRS notices may be temporarily suspended, agency advises

  • February 11, 2022
  • ShindelRock

While the Internal Revenue Service works through a return and correspondence backlog, the agency has notified taxpayers it will not send certain letters and notices, including the mailing of automated collection notices normally issued when a taxpayer owes additional tax,...

“Staked” cryptocurrency value may no longer be taxed as income

A recent settlement offered to taxpayers who filed a suit against the IRS may indicate a change in how staked cryptocurrencies are taxed. Previously, staking income was thought of, and treated similar to, interest income. Many crypto exchanges were handling it...

SR Client Question: Do I issue a Form 1099 to a law firm collecting fees for my medical practice?

When a medical practice or other business engages, on a contingent basis, a law firm or other third party to collect outstanding fees or invoices on its behalf, there are two different tax code sections that are relevant. Assuming that...