The IRS and FTB have just extended the filing deadline for 2020 individual tax returns and payments from 4/15 to 5/17 giving tax professionals and individuals more time to file returns complicated by retroactive tax law changes and Covid delays.
Although vote counting continues and legal challenges to the election endure, many news media organizations have projected that former Vice President Joe Biden will become the 46th President of the United States on January 20, 2021.
The House of Representatives will remain under Democratic control, but control of the Senate is somewhat less certain since the balance of power will be determined in January 2021 following a run-off election for two open Senate seats in Georgia. The run-off is necessary because neither of the candidates in either of the races obtained more than 50% of the total vote count as required by the state’s election law. A win by the two Democratic candidates would shift the balance of power in the Senate from one of GOP control […]
The IRS has just released an update on what they will and will not be doing during the government shutdown:
The IRS will continue to:
What the IRS will not do:
For the full notice click here.
Did you know that if you have a foreign bank account, or even just signature authority over a foreign account that isn’t in your name, that your CPA should know about it? While there is no specific tax on having a foreign bank account, the penalty for failure to disclose can range from $10,000 and up to 50% of the balance of the account if the failure is found to be willful. The IRS is working down their lists. Years ago they were going after billionaires with secret Swiss bank accounts, but more recently they are enforcing penalties against much smaller account holders. Two weeks ago, in a more shocking court case, a taxpayer was ordered to pay $697,229 related to an account inherited from her […]
This week the IRS announced increases to the annual contribution limits for 401(k) and IRA accounts, effective January 1, 2019. Both limits increased by $500, so the new annual contribution limit is $19,000 for 401(k) plan accounts and $6,000 for IRA’s.
For detail on what else changed see the IRS news release here.