Category: Tax

Businesses Get Relief as the Corporate Transparency Act is Delayed

A significant update has emerged for businesses facing the upcoming January 1 deadline to report beneficial ownership information (BOI) to the Financial Crimes Enforcement Network. A federal judge in Texas has issued a preliminary injunction halting the nationwide enforcement of...

Simplifying Section 83(b): New IRS Form Coming Soon

  • November 18, 2024
  • ShindelRock

The IRS is set to release an official form for the Section 83(b) election, a welcome development for individuals and entities granted restricted stock, stock options, or LLC interests. This election lets taxpayers pay taxes on these assets at grant...

U.S. Tax Court rules on basis adjustment for excess losses in closed years

The U.S. tax court has ruled in Surk LLC vs. IRS that a partnership had to adjust its basis in a flow-through entity for losses taken previously, even though they shouldn’t have been deducted in those prior years. The Tax Court...

IRS encourages all taxpayers to sign up for an IP PIN before Nov. 23

  • October 29, 2024
  • Maria Montie, CPA, MST, CVA, MAFF

As the 2025 tax season approaches, the IRS encourages all taxpayers to take an important step to safeguard their identity by signing up for an identity protection personal identification number (IP PIN). An IP PIN is a six-digit number that...

IRS online tool lets taxpayers check their account balance

  • October 8, 2024
  • ShindelRock

The IRS is urging taxpayers to use a handy online tool to check the status of their federal tax accounts. The online account feature is one of many useful online tools driving the impressive growth in visits to the agency’s...

IRS provides relief for hurricane victims in seven states

  • October 7, 2024
  • Maria Montie, CPA, MST, CVA, MAFF

The Internal Revenue Service (IRS) announced disaster tax relief for all individuals and businesses affected by Hurricane Helene, in any area designated by the Federal Emergency Management Agency (FEMA) including the entire states of Alabama, Georgia, North Carolina and South...

IRS may legitimately ask for taxpayer ID verification with Letter 5071C

  • September 26, 2024
  • ShindelRock

The IRS uses various methods to verify taxpayers' identities as part of its ongoing efforts to combat identity theft. One method involves a mailed notice called Letter 5071C, which requests taxpayers to confirm their identity to either proceed with processing...

Self-Employment Tax and Rental Exceptions

  • September 11, 2024
  • David Shindel

The tax treatment, particularly the application of self-employment taxes, of rental income from real estate investment properties can depend on the nature of the property and how it's operated. In most cases, the IRS considers rental income as passive income....

IRS moving forward with ERC claims

The IRS is adding new actions to help process valid Employee Retention Credit claims amid misleading marketing that led to an exceptionally high rate of improper ERC claims. The IRS says it did not have the resources to process the...

IRS clarifies RMD rules on inherited IRAs but tax implications loom

The IRS and Treasury Department issued final regulations reflecting updates from the SECURE Act and SECURE 2.0 Act affecting retirement plans, IRAs, and beneficiaries, addressing additional issues related to Required Minimum Distributions (RMDs) of inherited retirement accounts.  Specifically, the IRS...