Newsletters
IRS Letter Indicating No Valid Extension Filed
Posted August 2021
Many taxpayers are receiving letters from the Internal Revenue Service (IRS) stating the IRS was unable to grant an extension of time to file because the extension was not requested by the return due date.
IRS TO UPDATE VIRTUAL CURRENCY QUESTION FOR 2021
Posted August 2021
On July 22, 2021, the IRS released the draft of Form 1040. The IRS has made an important change to the wording of the virtual currency question that was on the front of Taxpayer’s 2020 Form 1040: “At any time during 2020, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency?”
IRS releases advance version of Rev. Proc. 2021-30 for retirement plan sponsors
Posted on August 2021
On July 13, 2021, the IRS released an advance version of Rev. Proc. 2021-30 as an update on a comprehensive system of correction programs for sponsors of retirement plans that are intended to satisfy the requirements of sections 401(a), 403(a), 403(b), 408(k) and 408(p), but that have not met these requirements for a period of time.
IRS Enhances Key Online Tool for Monthly Child Tax Credit Payments
Posted July 2021
On June 30, 2021, the IRS added a bank account update feature to its Child Tax Credit Update Portal (which is available only on IRS.gov). This new feature allows eligible families to easily update their bank account information so that they can receive their monthly Child Tax Credit payments in their desired bank account.
Capital Gains Tax Rate Increase Could Be on the Horizon
Posted July 2021
High-income investors may want to take action to realize gains at current, lower tax rates. President Biden’s current tax plan will raise the top tax rate on capital gains from 23.8% to 43.4% for households with income over $1 million. However, the President’s proposed budget appears to reflect this tax increase occurring in late April of 2021. If Congress agrees to a retroactive tax increase, tax planning will not be possible.
Supreme Court Strikes Down California Donor Disclosure Rule
Posted July 2021
On July 1, 2021, the U.S. Supreme Court ruled that California’s nonprofit donor disclosure requirements violate the First Amendment. The case, which is also seen as having a potential impact on campaign finance regulations, opens the door for further legal challenges against states that have similar rules requiring tax-exempt organizations to share their IRS Form 990 Schedule B and Schedule of Contributors with state officials. This schedule generally includes the names, addresses, and total contributions of all donors who contribute more than $5,000.
Advance Child Tax Credit Payments
Posted June 2021
The IRS announced that the 2021 advance child tax credit (CTC) payments, created under the American Rescue Plan Act (ARPA), will begin being made on July 15, 2021. According to the IRS, about 39 million households covering 88% of children in the U.S. “are slated to begin receiving monthly payments without any further action required.” Eligible parents will soon begin receiving payments from the federal government.
Providing Education Assistance to Employees
Posted June 2021
Many businesses provide education fringe benefits so their employees can improve their skills and gain additional knowledge. Under a “qualified educational assistance program,” an employee can receive, on a tax-free basis, up to $5,250 each year from their employer for educational assistance.
Tax Filing Reminders – August 2021
September 15
September 30
October 15
Tax Filing Reminders – July 2021
July 31
September 15
September 30
October 15