Tax Warrior Chronicles

IRS Unveils People First Initiative

Posted on Sat, Mar 28, 2020

On March 25, 2020 the IRS released IR-2020-59 with information on the operational status of their compliance programs, including expanded relief for payment programs. The news release details IRS Commissioner Chuck Rettig’s thoughts on providing taxpayers additional avenues of temporary relief during the coronavirus pandemic and highlights various IRS compliance and payment programs and the steps taken to provide temporary relief.

 

The “People First Initiative” focuses on two areas and is in addition to other deadline relief previously granted.

 

Installment Agreement and Offers in Compromise Payments

The IRS granted expanded payment relief for existing Installment Agreements and accepted

Read More

BREAKING NEWS - $2T COVID-19 Relief CARES Act Becomes Law

Posted on Fri, Mar 27, 2020

President Trump signed into law today H.R. 748, the Coronavirus Aid, Relief and Economic Security Act (CARES Act).  This is the third major piece of legislation enacted in response to the COVID-19 pandemic since March 6, 2020.  The focus of the $2 trillion package is supporting American workers and businesses while providing resources to the health care community serving the public during this unprecedented time.

 

Some provisions in the CARES Act have refund opportunities for prior tax years, while others apply on a forward-looking basis.  Many provisions provide immediate liquidity during the pandemic crisis.

 

We will be writing about the CARES Act in detail in the coming days and

Read More

Update on Federal and State Tax Deadlines

Posted on Wed, Mar 25, 2020

UPDATED April 1, 2020

 

As of April 1, 2020, many states have released guidance to extend their tax filing or payment deadlines to align with IRS Notice 2020-18 or to provide their own extended filing or payment dates, while others are still slow to take action.  Additionally, on March 24, 2020, the IRS has also released information addressing Frequently Asked Questions (FAQs) and on March 27, 2020 the IRS issued Notice 2020-20.  Today’s blog will update you on the most current information available regarding federal, state and select local tax filing and payment deadlines.

 

Note:  In future blog posts, we will begin dissecting the next Coronavirus relief bill that becomes law.   Whatever

Read More

IRS Provides Expanded Relief for All Taxpayers with April 15 Deadlines

Posted on Fri, Mar 20, 2020

Late in the evening on Friday, March 20, 2020, the Treasury Department and the IRS issued Notice 2020-18, restating and expanding relief provided in Notice 2020-17.  Read on for the details of the expanded relief.

 

Notice 2020-18 provides guidance on how Affected Taxpayers may defer tax filings and tax payments due to the coronavirus (COVID-19).

 

Any person (individual, trust, estate, partnership, association, company or corporation per IRC §7701(a)(1)), with a federal income tax payment or a federal income tax return due April 15, 2020 is considered affected by the COVID-19 pandemic, and is an Affected Taxpayer.

 

For an Affected Taxpayer, the due date for filing federal income tax

Read More

Families First Coronavirus Response Act Enacted

Posted on Thu, Mar 19, 2020

The Families First Coronavirus Response Act (Families First Act) was approved by the Senate on March 18, 2020, and swiftly signed by the President into law.

 

While the Families First Act contains tax provisions, the primary goal was to ensure affected individuals receive paid leave, food assistance and unemployment insurance during this unprecedented time.  The Families First Act is nuanced, and additional guidance is required.  For now, here is our high-level summary of the Families First Act for our readers.

 

Non-Business Matters

 

The Families First Act provides funding for Health and Human Services programs that aid elderly Americans, increases Medicaid funding to cover coronavirus

Read More

IRS Provides Guidance on Coronavirus Relief Package

Posted on Wed, Mar 18, 2020

The Treasury Department and the IRS finally issued Notice 2020-17 late Wednesday afternoon, providing guidance on how Affected Taxpayers may defer tax payments due to the coronavirus (COVID-19).

 

Any person (individual, trust, estate, partnership, association, company or corporation per IRC §7701(a)(1)), with a federal income tax payment due on April 15, 2020, is considered an Affected Taxpayer.

 

The Applicable Postponed Payment Amount is the aggregate of all payments due on April 15, 2020.

 

Individuals and non-corporate Affected Taxpayers may defer the Applicable Postponed Payment Amount of income and self-employment tax of up to $1,000,000 to July 15, 2020, regardless of filing

Read More

Coronavirus Relief Package Likely to Extend April 15th Tax Return Filing and Payment Deadline

Posted on Wed, Mar 11, 2020

The White House and law makers met Wednesday March 11, 2020, to hash out emergency legislation to provide economic relief related to the coronavirus pandemic.  There is a planned vote on Thursday March 12, 2020, with hopes that President Trump will sign the legislation into law by Friday March 13, 2020.  It is expected that this legislation and related executive orders will include an extension of time to file and pay taxes normally due on or before April 15, 2020, for many taxpayers.

 

Steven Mnuchin, Treasury Secretary, stated on Wednesday March 11th that law makers have been working “round-the-clock” to come to a consensus on an economic relief package, which is expected to include

Read More

Procrastinators Guide to Gathering Tax Information

Posted on Mon, Mar 09, 2020

By: Sherri Sorbello, CPA

 

Many dread the process of filing their tax returns and wait until the last minute to gather the data and documents.  Procrastination hurts both you and your tax accountant.  Getting your information to your accountant earlier may result in lower tax preparation fees and less stress for all involved. 

Here are a few tips and tricks to get ahead of the game in completing your tax return…

  • Create a master list of your bank and financial accounts so you can anticipate what tax forms you should receive at tax time. Update the list as needed for new or closed accounts.  If you have an investment advisor managing your accounts, introduce them to your tax accountant. 
Read More

Understanding REITs and Their Place in Your Portfolio

Posted on Fri, Mar 06, 2020

By: Stuart Shikiar, Albert Sipzener, Lockwood Sloan and Sam Shikiar

 

Real estate has been a time-tested addition to investor portfolios. Real Estate Investment Trusts, or REITs, provide an opportunity for tax-advantaged income investing. Today’s post features a discussion by the team at Shikiar Asset Management, a New York-based registered investment advisor and long-time friend of Drucker & Scaccetti.  Here is what they have to say about REITs…

 

Real Estate Investment Trusts (REITs) have been a central component of our strategy for several years. REITs offer investors the benefits of exposure to real estate coupled with the ease and advantages of investing in publicly traded equities,

Read More

Tax Talk Glossary – Types of Income

Posted on Thu, Mar 05, 2020

By: Janaki Narayanswamy, CPA

 

Our blogs are written to help make tax compliance and planning processes easier to understand for non-tax professionals. Though many of our articles provide keen insight in easy-to-understand language, we are sometimes guilty of inadvertently peppering our articles with industry jargon, “tax talk,” or abbreviations that you many not easily recognize.  So, we thought it would be helpful to our readers to provide a brief explanation of frequently used tax talk words in a monthly “Tax Talk Glossary.”  Read on for our first installment where we discuss types of income.

 

“What is the difference between a taxidermist and a tax collector? The taxidermist takes only

Read More