• Subscribe to our RSS
  • Receive updates as soon as they are posted
(951) 273-9090
  • Ayoub & Associates Home
  • Blog Home
  • About Us
  • Archives
  • Contact Us
  • Reviews

IRS, Treasury issue guidance for applying UBTI “silo” rules for tax-exempt organizations by identifying separate trades or businesses

Posted on April 23rd, 2020 - by marvy wagdy In Uncategorized

IR-2020-78, April 23, 2020

WASHINGTON — The Treasury Department and Internal Revenue Service today issued proposed regulations under the Tax Cuts and Jobs Act (TCJA) that provide guidance for tax-exempt organizations that are subject to the unrelated business income tax with more than one unrelated trade or business on how to calculate their unrelated business taxable income (UBTI).

The proposed regulations issued today provide guidance on identifying separate trades or businesses, including investment activities, as well as certain other amounts included in UBTI.

Changes under the TCJA require tax-exempt organizations subject to the UBTI tax to compute UBTI, including any NOL deduction, separately for each trade or business (referred to as a “silo”).

Under prior law, UBTI was the gross income of all unrelated trades or businesses less the allowed deductions from all unrelated trades or businesses. Starting in tax-year 2018 (tax years beginning after December 31, 2017), the loss from one trade or business may not offset the income from another, separate trade or business.

Updates on the implementation of the TCJA can be found on the Tax Reform page of IRS.gov. https://www.irs.gov/newsroom/irs-treasury-issue-guidance-for-applying-ubti-silo-rules-for-tax-exempt-organizations-by-identifying-separate-trades-or-businesses

  • 0 Comments

Veterans Affairs recipients will receive automatic Economic Impact Payments; Step follows work between Treasury, IRS, VA

Posted on April 20th, 2020 - by marvy wagdy In Uncategorized

IR-2020-75, April 17, 2020

WASHINGTON — The Internal Revenue Service, working in partnership with the Treasury Department and the Department of Veterans Affairs, announced today that recipients of VA benefits will automatically receive automatic Economic Impact Payments.

Veterans and their beneficiaries who receive Compensation and Pension (C&P) benefit payments from VA will receive a $1,200 Economic Impact Payment with no further action needed on their part. Timing on the payments is still being determined.

Moving VA recipients into the automatic payment category follows weeks of extensive cooperative work between VA, Treasury, IRS as well as the Bureau of Fiscal Services.

“Since many VA recipients typically aren’t required to file tax returns, the IRS had to work with these other government agencies to determine a way to quickly and accurately deliver Economic Impact Payments to this group,” said IRS Commissioner Chuck Rettig. “Additional programming work remains, but this step simplifies the process for VA recipients to quickly and easily receive these $1,200 payments automatically. We deeply appreciate the sacrifices and service to our country by each and every veteran and their families, as well as the assistance of VA and the Bureau of Fiscal Services in this effort.”

No action needed by most taxpayers

Earlier this month, the IRS took a similar action to ensure those receiving Social Security retirement or disability benefits, Supplemental Security Income and Railroad Retirement benefits can receive automatic payments of $1,200. While these groups receive Forms 1099, many in this group don’t typically file tax returns. Many people in these groups are expected to see the automatic $1,200 payments later this month, with SSI payments expected to start in early May.

For eligible taxpayers who filed tax returns for 2019 or 2018, they will also receive the payments automatically. About 80 million payments are hitting bank accounts this week.

For benefit recipients with dependents, extra step needed to claim $500 for children; Register now for earlier delivery

The law provides eligible taxpayers with qualifying children under age 17 to receive an extra $500. For taxpayers who filed tax returns in 2018 or 2019, the child payments will be automatic.

However, many benefit recipients typically aren’t required to file tax returns. If they have children who qualify, an extra step is needed to add $500 per child onto their automatic payment of $1,200 if they didn’t file a tax return in 2018 or 2019.

For those who receive these benefits – including VA, Social Security retirement or disability benefits (SSDI), Railroad Retirement benefits or SSI – and have a qualifying child, they can quickly register by visiting “Non-Filers: Enter Payment Info” available only on IRS.gov. For those who can use this tool as soon as possible, they may be able to get earlier delivery of the child payments by having these added to their automatic payments.

By quickly taking steps to enter information on the IRS website about them and their qualifying children, they can receive the $500 per dependent child payment in addition to their $1,200 individual payment. If beneficiaries in these group do not provide their information to the IRS soon, they will receive their $500 per qualifying child at a later date, depending on when they complete the registration process.

The Treasury Department, not the VA, will make these automatic payments. Recipients will generally receive the automatic payments the way they receive their current benefits.

For more information related to veterans and their beneficiaries who receive Compensation and Pension (C&P) benefit payments from VA, please visit VA.gov.

Information for recipients using the IRS.gov Non-Filer and Get My Payment tools

We recognize that many non-tax filing beneficiaries have already begun using the “Non-Filers: Enter Payment Info” tool to provide basic personal information to receive their EIP. There will be no interruption to payments being processed using this portal, and Veterans with internet access are encouraged to continue providing information and track their EIP through the “Get My Payment” tool.

General information about the payment is available on the Economic Impact Payment Information Center section of IRS.gov.

Watch out for scams related to Economic Impact Payments

The IRS urges taxpayers to be on the lookout for scams related to the Economic Impact Payments. To use the new app or get information, taxpayers should visit IRS.gov. People should watch out for scams using email, phone calls or texts related to the payments. Be careful and cautious: The IRS will not send unsolicited electronic communications asking people to open attachments, visit a website or share personal or financial information. Remember, go directly and solely to IRS.gov for official information.

More information

The IRS has posted frequently asked questions on IRS.gov/coronavirus and will provide more updates as soon as they are available.
https://www.irs.gov/newsroom/veterans-affairs-recipients-will-receive-automatic-economic-impact-payments-step-follows-work-between-treasury-irs-va

  • 0 Comments

Supplemental Security Income recipients will receive automatic Economic Impact Payments; step follows work between Treasury, IRS, Social Security Administration

Posted on April 16th, 2020 - by marvy wagdy In Uncategorized

IR-2020-73, April 15, 2020

WASHINGTON — The Internal Revenue Service, working in partnership with the Treasury Department and the Social Security Administration, announced today that recipients of Supplemental Security Income (SSI) will automatically receive automatic Economic Impact Payments.

SSI recipients will receive a $1,200 Economic Impact Payment with no further action needed on their part. The IRS projects the payments for this group will go out no later than early May.

Moving SSI recipients into the automatic payment category follows weeks of extensive cooperative work between SSA, Treasury, IRS as well as the Bureau of Fiscal Services.

“Since SSI recipients typically aren’t required to file tax returns, the IRS had to work extensively with these other government agencies to determine a way to quickly and accurately deliver Economic Impact Payments to this group,” said IRS Commissioner Chuck Rettig. “Additional programming work remains, but this step simplifies the process for SSI recipients to quickly and easily receive these $1,200 payments automatically. We appreciate the assistance of SSA and the Bureau of Fiscal Services in this effort.”

No action needed by most taxpayers

Earlier this month, the IRS took a similar action to ensure those receiving Social Security retirement or disability benefits and Railroad Retirement benefits can receive automatic payments of $1,200. While these groups receive Forms 1099, many in this group don’t typically file tax returns. People in these groups are expected to see the automatic $1,200 payments later this month.

Eligible taxpayers who filed tax returns for 2019 or 2018 will also receive the payments automatically. About 80 million payments are hitting bank accounts this week.

For benefit recipients with dependents, extra step needed to claim $500 for children

The law provides eligible taxpayers with qualifying children under age 17 to receive an extra $500. For taxpayers who filed tax returns in 2018 or 2019, the child payments will be automatic.

However, many benefit recipients typically aren’t required to file tax returns. If they have children who qualify, an extra step is needed to add $500 per child onto their automatic payment of $1,200 if they didn’t file a tax return in 2018 or 2019.

For those who receive Social Security retirement or disability benefits (SSDI), Railroad Retirement benefits or SSI and have a qualifying child, they can quickly register by visiting special tool available only on IRS.gov andprovide their information in the Non-Filers section. By quickly taking steps to enter information on the IRS website about them and their qualifying children, they can receive the $500 per dependent child payment in addition to their $1,200 individual payment. If beneficiaries in these groups do not provide their information to the IRS soon, they will have to wait until later to receive their $500 per qualifying child.

The Treasury Department, not the Social Security Administration, will make these automatic payments to SSI recipients. Recipients will generally receive the automatic payments by direct deposit, Direct Express debit card, or by paper check, just as they would normally receive their SSI benefits.

For those with dependents who use Direct Express debit cards, additional information will be available soon regarding the steps to take on the IRS web site when claiming children under 17.

For information about Social Security retirement, survivors and disability insurance beneficiaries, please visit the SSA website at SSA.gov.

General information about the Economic Impact Payments is available on a special section of IRS.gov.

Watch out for scams related to Economic Impact Payments

The IRS urges taxpayers to be on the lookout for scams related to the Economic Impact Payments. To use the new app or get information, taxpayers should visit IRS.gov. People should watch out for scams using email, phone calls or texts related to the payments. Be careful and cautious: The IRS will not send unsolicited electronic communications asking people to open attachments, visit a website or share personal or financial information. Remember, go directly and solely to IRS.gov for official information.

More information

The IRS will post frequently asked questions on IRS.gov/coronavirus and will provide updates as soon as they are available. https://www.irs.gov/newsroom/supplemental-security-income-recipients-will-receive-automatic-economic-impact-payments-step-follows-work-between-treasury-irs-social-security-administration

  • 0 Comments

Treasury, IRS launch new tool to help non-filers register for Economic Impact Payments

Posted on April 10th, 2020 - by marvy wagdy In Uncategorized

IRS.gov feature helps people who normally don’t file get payments; second tool next week provides taxpayers with payment delivery date and provide direct deposit information

IR-2020-69, April 10, 2020

WASHINGTON — To help millions of people, the Treasury Department and the Internal Revenue Service today launched a new web tool allowing quick registration for Economic Impact Payments for those who don’t normally file a tax return.

The non-filer tool, developed in partnership between the IRS and the Free File Alliance, provides a free and easy option designed for people who don’t have a return filing obligation, including those with too little income to file. The feature is available only on IRS.gov, and users should look for Non-filers: Enter Payment Info Here to take them directly to the tool.

“People who don’t have a return filing obligation can use this tool to give us basic information so they can receive their Economic Impact Payments as soon as possible,” said IRS Commissioner Chuck Rettig. “The IRS and Free File Alliance have been working around the clock to deliver this new tool to help people.”

The IRS reminds taxpayers that Economic Impact Payments will be distributed automatically to most people starting next week. Eligible taxpayers who filed tax returns for 2019 or 2018 will receive the payments automatically. Automatic payments will also go in the near future to those receiving Social Security retirement or disability benefits and Railroad Retirement benefits.

How do I use the Non-Filers: Enter Payment Info tool?

For those who don’t normally file a tax return, the process is simple and only takes a few minutes to complete. First, visit IRS.gov, and look for “Non-Filers: Enter Payment Info Here.” Then provide basic information including Social Security number, name, address, and dependents. The IRS will use this information to confirm eligibility and calculate and send an Economic Impact Payment. Using the tool to get your payment will not result in any taxes being owed. Entering bank or financial account information will allow the IRS to deposit your payment directly in your account. Otherwise, your payment will be mailed to you.

“Non-Filers: Enter Payment Info” is secure, and the information entered will be safe. The tool is based on Free File Fillable Forms, part of the Free File Alliance’s offerings of free products on IRS.gov.

Who should use theNon-Filers tool?

This new tool is designed for people who did not file a tax return for 2018 or 2019 and who don’t receive Social Security retirement or disability benefits or Railroad Retirement benefits. Others who should consider the Non-Filers tool as an option, include:

Lower income: Among those who could use Non-Filers: Enter Payment Info tool are those who haven’t filed a 2018 or 2019 return because they are under the normal income limits for filing a tax return. This may include single filers who made under $12,200 and married couples making less than $24,400 in 2019.

Veterans beneficiaries and Supplemental Security Income (SSI) recipients: The IRS continues to explore ways to see if Economic Impact Payments can be made automatically to SSI recipients and thosewho receive veterans disability compensation, pension or survivor benefits from the Department of Veterans Affairs and who did not file a tax return for the 2018 or 2019 tax years. People in these groups can either use Non-Filers: Enter Payment Info option now or wait as the IRS continues to review automatic payment options to simplify delivery for these groups.

Social Security, SSDI and Railroad Retirement beneficiaries with qualifying dependents: These groups will automatically receive $1,200 Economic Impact Payments. People in this group who have qualifying children under age 17 may use Non-Filers: Enter Payment Info to claim the $500 payment per child.

Students and others: If someone else claimed you on their tax return, you will not be eligible for the Economic Impact Payment or using the Non-Filer tool.

Coming next week: Automatic payments begin

Eligible taxpayers who filed tax returns for either 2019 or 2018 and chose direct deposit of their refund will automatically receive an Economic Impact Payment of up to $1,200 for individuals or $2,400 for married couples and $500 for each qualifying child. Individuals who receive Social Security retirement or disability benefits, SSDI or who receive Railroad Retirement benefits but did not file a return for 2019 or 2018 will automatically receive a payment in the near future.

Coming next week: Get My Payment shows Economic Impact Payment date, helps with direct deposit

To help everyone check on the status of their payments, the IRS is building a second new tool expected to be available for use by April 17. Get My Payment will provide people with the status of their payment, including the date their payment is scheduled to be deposited into their bank account or mailed to them.

An additional feature on Get My Payment will allow eligible people a chance to provide their bank account information so they can receive their payment more quickly rather than waiting for a paper check. This feature will be unavailable if the Economic Impact Payment has already been scheduled for delivery.

More Information on Economic Impact Payments

The IRS will post additional updates on IRS.gov/coronavirus on these and other issues.https://www.irs.gov/newsroom/treasury-irs-launch-new-tool-to-help-non-filers-register-for-economic-impact-payments

  • 0 Comments

Follow IRS on social media, sign up for e-news subscriptions for urgent updates on COVID-19, scams and economic impact payment information

Posted on April 3rd, 2020 - by marvy wagdy In Uncategorized

IR-2020-65, April 3, 2020

WASHINGTON — The Internal Revenue Service reminded taxpayers, businesses, tax professionals and others to follow the agency’s official social media accounts and email subscription lists to get urgent information on COVID-19 and economic impact payments. These platforms provide the latest alerts and information on various tax topics to include emerging scams.

These platforms are especially important during the COVID-19 pandemic. Recent changes to filing and payment deadlines, coupled with new business credits and economic impact payments make these free and reliable communications crucial for anyone wanting the latest information.

“The IRS is committed to sharing information as quickly as possible about the economic impact payments and other tax issues related to the coronavirus,” said IRS Commissioner Chuck Rettig. “IRS social media channels offer taxpayers and others another fast, easy option to get the latest details as the IRS employees continue to work hard to support the nation.”

Taxpayers can follow key IRS social media platforms

The IRS uses several social media tools including:

  • Twitter:Taxpayers, businesses and tax professionals can follow the IRS handles for up to the minute announcements, tips and alerts in English and Spanish.
  • Facebook: News and information for everybody. Also available in Spanish.
  • Instagram: The IRS Instagram account shares taxpayer-friendly information.
  • YouTube: The IRS offers video tax tips in English, Spanish and American Sign Language.
  • LinkedIn:The IRS shares key agency communications and job opportunities.

When using social media to connect with the IRS, verify the accounts by going first to IRS.gov/socialmedia. Taxpayers are urged to watch for IRS impersonators and other scammers, which can try imitating the IRS during crisis situations and natural disasters.

The IRS reminds taxpayers to never give out personal or financial information to anyone alleging to represent the IRS on a social media platform or in unsolicited emails, texts or calls.

The IRS also has a free mobile app, IRS2Go, where taxpayers can check their refund status, pay taxes, find free tax help, watch IRS YouTube videos and get daily tax tips. The IRS2Go app is available from the Google Play Store for Android devices, or from the Apple App Store for Apple devices. IRS2Go is available in both English and Spanish.

Get automatic updates by email

The IRS e-News Subscription service issues tax information by email for many different audiences. It provides tips, tools and helpful materials of interest to taxpayers and organizations. The IRS offers subscription services tailored to tax exempt and government entities, small and large businesses as well as individuals. The service is easy to use; sign up by visiting IRS e-News Subscriptions.

The IRS currently has 20 registration-based e-News options, including:

  • IRS Outreach Connection − This newest IRS subscription offering delivers up-to-date materials for tax professionals and partner groups inside and outside the tax community. The material for Outreach Connection is specifically designed so subscribers can share the material with their clients or members through email, social media, internal newsletters, e-mails or external websites. Subscribe by visiting IRS.gov/outreachconnect.
  • IRS Tax Tips – These brief, concise tips in plain language cover a wide-range of topics of general interest to taxpayers. They include the latest on tax scams, tax reform, tax deductions, filing extensions and amending returns. IRS Tax Tips are distributed daily during tax season and periodically throughout the year.
  • IRS Newswire − Subscribers to IRS Newswire receive news releases the day they are issued. These cover a wide range of tax administration issues ranging from breaking news to details related to legal guidance.
  • IRS News in Spanish (Noticias del IRS en Español) − Readers get IRS news releases, tax tips and updates in Spanish as they are released. Subscribe at Noticias del IRS en Español.
  • e-News for Tax Professionals − Includes a weekly roundup of news releases and legal guidance specifically designed for the tax professional community. Subscribing to e-News for Tax Professionals gets tax pros a weekly summary, typically delivered on Friday afternoons.

For more information and other IRS subscriptions designed for specific groups, visit IRS e-News Subscriptions. The resources will help taxpayers and organizations keep up with the latest information during and after filing season. https://www.irs.gov/newsroom/follow-irs-on-social-media-sign-up-for-e-news-subscriptions-for-urgent-updates-on-covid-19-scams-and-economic-impact-payment-information

  • 0 Comments

IRS issues warning about Coronavirus-related scams; watch out for schemes tied to economic impact payments

Posted on April 2nd, 2020 - by marvy wagdy In Uncategorized

IR-2020-64, April 2, 2020

WASHINGTON — The Internal Revenue Service today urged taxpayers to be on the lookout for a surge of calls and email phishing attempts about the Coronavirus, or COVID-19. These contacts can lead to tax-related fraud and identity theft.

“We urge people to take extra care during this period. The IRS isn’t going to call you asking to verify or provide your financial information so you can get an economic impact payment or your refund faster,” said IRS Commissioner Chuck Rettig. “That also applies to surprise emails that appear to be coming from the IRS. Remember, don’t open them or click on attachments or links. Go to IRS.gov for the most up-to-date information.”

Taxpayers should watch not only for emails but text messages, websites and social media attempts that request money or personal information.

“History has shown that criminals take every opportunity to perpetrate a fraud on unsuspecting victims, especially when a group of people is vulnerable or in a state of need,” said IRS Criminal Investigation Chief Don Fort. “While you are waiting to hear about your economic impact payment, criminals are working hard to trick you into getting their hands on it. The IRS Criminal Investigation Division is working hard to find these scammers and shut them down, but in the meantime, we ask people to remain vigilant.”

Don’t fall prey to Coronavirus tricks; retirees among potential targets

The IRS and its Criminal Investigation Division have seen a wave of new and evolving phishing schemes against taxpayers. In most cases, the IRS will deposit economic impact payments into the direct deposit account taxpayers previously provided on tax returns. Those taxpayers who have previously filed but not provided direct deposit information to the IRS will be able to provide their banking information online to a newly designed secure portal on IRS.gov in mid-April. If the IRS does not have a taxpayer’s direct deposit information, a check will be mailed to the address on file. Taxpayers should not provide their direct deposit or other banking information for others to input on their behalf into the secure portal.

The IRS also reminds retirees who don’t normally have a requirement to file a tax return that no action on their part is needed to receive their $1,200 economic impact payment. Seniors should be especially careful during this period. The IRS reminds retirees – including recipients of Forms SSA-1099 and RRB-1099 − that no one from the agency will be reaching out to them by phone, email, mail or in person asking for any kind of information to complete their economic impact payment, also sometimes referred to as rebates or stimulus payments. The IRS is sending these $1,200 payments automatically to retirees – no additional action or information is needed on their part to receive this.

The IRS reminds taxpayers that scammers may:

  • Emphasize the words “Stimulus Check” or “Stimulus Payment.” The official term is economic impact payment.
  • Ask the taxpayer to sign over their economic impact payment check to them.
  • Ask by phone, email, text or social media for verification of personal and/or banking information saying that the information is needed to receive or speed up their economic impact payment.
  • Suggest that they can get a tax refund or economic impact payment faster by working on the taxpayer’s behalf. This scam could be conducted by social media or even in person.
  • Mail the taxpayer a bogus check, perhaps in an odd amount, then tell the taxpayer to call a number or verify information online in order to cash it.

Reporting Coronavirus-related or other phishing attempts

Those who receive unsolicited emails, text messages or social media attempts to gather information that appear to be from either the IRS or an organization closely linked to the IRS, such as the Electronic Federal Tax Payment System (EFTPS), should forward it to phishing@irs.gov.

Taxpayers are encouraged not to engage potential scammers online or on the phone. Learn more about reporting suspected scams by going to the Report Phishing and Online Scams page on IRS.gov.

Official IRS information about the COVID-19 pandemic and economic impact payments can be found on the Coronavirus Tax Relief page on IRS.gov. The page is updated quickly when new information is available. https://www.irs.gov/newsroom/irs-issues-warning-about-coronavirus-related-scams-watch-out-for-schemes-tied-to-economic-impact-payments

  • 0 Comments

Longtime tax pro Erin Collins begins as new National Taxpayer Advocate; Collins takes on job early to help with COVID-19 response

Posted on March 30th, 2020 - by marvy wagdy In Uncategorized

IR-2020-60, March 27, 2020

WASHINGTON — The Internal Revenue Service today announced Erin M. Collins will start her term as the National Taxpayer Advocate (NTA) on Monday, March 30, and lead the Taxpayer Advocate Service, an independent organization within the IRS.

The Advocate is a critical position inside the IRS, leading the Taxpayer Advocate Service and serving as a voice for taxpayers inside the IRS as well as being a senior adviser to IRS leadership. The NTA also reports to Congress on areas of the tax law that impose significant burdens on taxpayers or the IRS, including recommending potential legislative changes.

“Collins is an excellent choice for this key position because she is familiar with tax issues from inside and outside the IRS,” said IRS Commissioner Charles Rettig. “The IRS leadership team and I look forward to a meaningful, productive working relationship with Collins and the Taxpayer Advocate Service to help improve our tax system for everyone.”

“I will be starting my position as the National Taxpayer Advocate earlier than originally planned due to the recent national emergency,” Collins said. “I can’t imagine a more critical time to lead the Taxpayer Advocate Service and to help the nation’s taxpayers during this time.”

Treasury Secretary Steven Mnuchin appointed Collins on February 27, 2020, to replace Nina Olson, who left the office in July 2019 after serving more than 18 years.

“We are extremely thankful to Bridget Roberts for her efforts while serving as Acting Advocate following Nina Olson’s many years of service and leadership,” Rettig said.

Rettig added that he appreciated the work of Roberts and the TAS team, which has been working closely with IRS leadership on numerous issues related to COVID-19, including help for taxpayers in the new People First Initiative.

Roberts will resume her permanent role as the Deputy National Taxpayer Advocate.

Collins has extensive background in the tax community including 20 years as a Managing Director of KPMG’s Tax Controversy Services practice for the Western Area. Before that, she was an attorney in the IRS Office of Chief Counsel for 15 years. Throughout her career, she represented individuals, partnerships and corporate taxpayers on technical and procedural tax matters. Collins has also provided pro bono services to taxpayers to resolve disputes with the IRS. Collins also donated her time to non-profit boards focusing on underserved communities where English is typically not the primary language spoken at home.

“Her interests fit in perfectly with the priorities of the Taxpayer Advocate Service, specifically, and the IRS, more generally,” Rettig added.

TAS helps taxpayers and protects taxpayer rights. TAS has at least one local taxpayer advocate office in every state, the District of Columbia and Puerto Rico. TAS helps taxpayers who need assistance resolving an IRS problem, if their problem is causing financial difficulty, or if they believe an IRS system or procedure isn’t working as it should. Taxpayers can call their local advocate; whose number is in their local directory. Visit the TAS website to learn more about TAS and how it can help.Page Last Reviewed or Updated: 27-Mar-2020

  • 0 Comments

Tax Return Deadline/Payment Deadline Update COVID-19

Posted on March 20th, 2020 - by Fiby In Business, Tax Tips, Uncategorized

IRS

The IRS has officially pushed back the tax filing deadline to July 15, 2020 for all the 2019 tax liability as well as 2020 estimated tax payments. AGAIN, the entire tax season has been postponed to a due date of July 15th..

California:

The Franchise Tax Board (FTB) announced updated special tax relief for all California taxpayers due to the COVID-19 pandemic.

FTB is postponing until July 15 the filing and payment deadlines for all individuals and business entities for:

    • 2019 tax returns
    • 2019 tax return payments
    • 2020 1st and 2nd quarter estimate payments –  Corp ($800) & Personal ($)
    • 2020 LLC taxes and fees ($800)
  • 2020 Non-wage withholding payments

For more details regarding FTB COVID-19 tax relief, please see website at ftb.ca.gov and search COVID-19.

 

EDD & Payroll taxes:

This is the latest from EDD regarding payroll changes effecting workers/employees and employers.

https://www.edd.ca.gov/about_edd/coronavirus-2019.htm

Our firm is dedicated to help you through this hard times. Please do not hesitate to call/email our office for additional clarification.

  • 0 Comments

Tax Time Guide: Guard personal, financial and tax information year-round

Posted on March 18th, 2020 - by marvy wagdy In Business, Tax Tips, Uncategorized

IR-2020-56, March 13, 2020

WASHINGTON — The Internal Revenue Service today reminded taxpayers to remain vigilant with their personal information by securing computers and mobile phones. Proper cybersecurity protection and scam recognition can reduce the threat of identity theft inside and outside the tax system.

This news release is part of a series called the Tax Time Guide, a resource to help taxpayers file an accurate tax return. Additional help is available in Publication 17, Your Federal Income Tax.

The IRS doesn’t initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. People should be alert to scammers posing as the IRS to steal personal information. There are ways to know if it’s really the IRS calling or knocking on someone’s door.

The IRS also works with the Security Summit, a partnership with state tax agencies and the private-sector tax industry, to help protect taxpayer information and defend against identity theft. Taxpayers and tax professionals can take steps to help in this effort.

Below are a few tips to help minimize exposure to fraud and identity theft:

  • Protect personal information. Treat personal information like cash – don’t hand it out to just anyone. Social Security numbers, credit card numbers, bank and even utility account numbers can be used to help steal a person’s money or open new accounts.
  • Avoid phishing scams. The easiest way for criminals to steal sensitive data is simply to ask for it. IRS urges people to learn to recognize phishing emails, calls or texts that pose as familiar organizations such as banks, credit card companies or even the IRS. Keep sensitive data safe and:
    • Be aware that an unsolicited email with a request to download an attachment or click on a URL could appear to come from someone that you know like a friend, work colleague or tax professional if their email has been spoofed or compromised.
    • Don’t assume internet advertisements, pop-up ads or emails are from reputable companies. If an ad or offer looks too good to be true, take a moment to check out the company behind it.
    • Never download “security” software from a pop-up ad. A pervasive ploy is a pop-up ad that indicates it has detected a virus on the computer. Don’t fall for it. The download most likely will install some type of malware. Reputable security software companies do not advertise in this manner.
  • Safeguard personal data. Provide a Social Security number, for example, only when necessary. Only offer personal information or conduct financial transactions on sites that have been verified as reputable, encrypted websites.
  • Use strong passwords. The longer the password, the tougher it is to crack. Use at least 10 characters; 12 is ideal for most home users. Mix letters, numbers and special characters. Try to be unpredictable – don’t use names, birthdates or common words. Don’t use the same password for many accounts and avoid sharing them. Keep passwords in a secure place or use password management software.

    Set password and encryption protections for wireless networks. If a home or business Wi-Fi is unsecured, it allows any computer within range to access the wireless network and potentially steal information from connected devices. Whenever it is an option for a password-protected account, users also should opt for a multi-factor authentication process.

  • Use security software. An anti-virus program should provide protection from viruses, Trojans, spyware and adware. The IRS urges people, especially tax professionals, to use an anti-virus program and always keep it up to date.

    Set security software to update automatically so it can be updated as threats emerge. Educate children and those with less online experience about the threats of opening suspicious web pages, emails or documents.

  • Back up files. No system is completely secure. Copy important files, including federal and state tax returns, onto removable discs or back-up drives and cloud storage. Store discs, drives and any paper copies in secure, locked locations.
  • ID Theft Central. New on IRS.gov. Designed to improve online access to information on identity theft. Serves taxpayers, tax professionals and businesses.

Taxpayers can find answers to questions, forms and instructions and easy-to-use tools online at IRS.gov. They can use these resources to get help when it’s needed at home, at work or on the go.  https://www.irs.gov/newsroom/tax-time-guide-guard-personal-financial-and-tax-information-year-round

  • 0 Comments

IRS announces waivers for Offer in Compromise applications

Posted on March 12th, 2020 - by marvy wagdy In Business, Tax Tips, Uncategorized

IR-2020-55, March 12, 2020

WASHINGTON — The Internal Revenue Service today announced the release of final regulations that increase the Offer in Compromise application fee to $205 and provide an additional way for the IRS to waive the Offer in Compromise application fee for low-income taxpayers, based on their adjusted gross income (AGI).

An Offer in Compromise (OIC) is an agreement between a taxpayer and the IRS to settle a tax debt for less than the full amount owed. Generally, it may be an option for taxpayers who can’t pay their full tax debt, or if doing so would create a financial hardship. The IRS considers the taxpayer’s overall financial circumstances when considering an OIC in an effort to administratively resolve the amount due.

Applicants who meet the definition of a “low-income taxpayer” receive a waiver of their OIC application fee. A new provision from the Taxpayer First Act provides an additional way for low-income taxpayers to qualify for a waiver of the OIC application fee.

Normally, the IRS determines if taxpayers fall at or below 250% of the poverty level by looking at their household’s size and gross monthly income. The new law provides an additional standard for the IRS to use in making the calculation. The IRS will now also look at a taxpayer’s AGI from the most recent tax return to determine whether it is at or below 250% of the poverty level.

Taxpayers with an outstanding tax debt are encouraged to timely respond to IRS notices and should not ignore correspondence received from the IRS. Taxpayers with an outstanding tax debt should contact the IRS at the phone number set forth in the notice, online or by visiting a local Taxpayer Assistance Center (TAC) – a listing of local TACs is available at IRS.gov. Taxpayers may also seek assistance from the Taxpayer Advocate Service (TAS). Contact information for TAS is available online, including a listing of local TAS offices.

For more information, see Offer in Compromise on IRS.gov.  https://www.irs.gov/newsroom/irs-announces-waivers-for-offer-in-compromise-applications

  • 0 Comments
Pages (27): « First ... « 3 4 5 6 7 8 9 » ... Last »

Categories

  • Business
  • Tax Tips
  • Uncategorized

Archives

  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • September 2013
  • May 2013
  • February 2013
  • January 2013
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • December 2011
  • November 2011

Meta

  • Log in

Blogroll

  • Documentation
  • Plugins
  • Suggest Ideas
  • Support Forum
  • Themes
  • WordPress Blog
  • WordPress Planet

© 2021 Ayoub & Associates, CPA
Maintenance by Visiondnd.com Premier Orange County Web Design Company