IRS TAX PAYER ID VERIFY TOOLS!

On November 17th IRS unveiled a new online identity verification process for accessing self-help tools. In our opinion, the IRS ID verify process was way overdue for an upgrade. Successfully verifying their old platform was an act of GOD. Rumor is... this process is much easier... probably because they outsourced...

CHILD TAX CREDIT/ ADVANCE CHILD TAX CREDIT

Here is a short update on what changed with the child tax credit & advance child tax credit. One year expansion for 2021 tax year only, per the American Rescue Plan Act of 2021) For tax year 2021, the Child Tax Credit is increased from $2,000 per qualifying child to:$3,600...

IRS WILL AUTO RECALCULATE TAXES ON UNEMPLOYMENT

To help taxpayers, the IRS annouced today that it will take steps to automatically refund money this spring and summer to people who filed their tax return reporting unemployment compensation before the recent changes made by the American Rescue Plan. Here is quick summary on the press release: Taxpayer who...

TAX DAY FOR INDIVIDUALS EXTENDED: MAY 17

The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The IRS will be providing formal guidance in the coming days. This one-month delay...

2020 IRS TAX UPDATES

Form 1099-NEC The 1099-NEC disappeared in the early '80s, and after a 38 absence is making a disco comeback! This form will be used to report non-employee compensation in box 1, meaning that nonemployee compensation will no longer be reported on Form 1099-MISC. Form 1099-NEC will need to be entered...