TAX HELP Archive
Premature Assessment Announcement from Tax Court
August 19, 2021
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TweetShareSharePin0 SharesOn August 16, 2021, the Tax Court issued the following press release regarding premature assessments: UNITED STATES TAX COURT Washington, D.C. 20217 August 16, 2021 PRESS RELEASE On July 23, 2021, the United States Tax Court issued a press release regarding the significantly increased number of petitions received this year. To date, the Court
Updates for ITIN Holders
August 18, 2021
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TweetShareSharePin0 Shares Two issues have come up recently for ITIN holders that I’d like to flag. Thanks to Sarah Lora of the Lewis & Clark Low Income Taxpayer Clinic for prompting this post and providing much of the content. 1. Earlier this spring, NTA Erin Collins wrote a blog post highlighting the delays caused by
Another Twist on Death and Taxes
August 17, 2021
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TweetShareSharePin0 Shares In Catlett v. Commissioner, T.C. Memo 2021-102 the Tax Court dismisses a case for lack of prosecution over seven years after the petitioner filed the case. He participated actively in the case – at least he was active in seeking continuances and some discovery – until he died. When he died, the Court
BC 507(a)(8)(C) Priority Prevents Discharge under BC 523(a)(1)(A)
August 16, 2021
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TweetShareSharePin0 Shares Last week I wrote about the case of Lufkin v. Commissioner, T.C. Memo 2021-71, in which the Tax Court ruled on the impact of filing bankruptcy on the statute of limitations. In that post, I mentioned that Bryan Camp wrote about the case as part of his Lessons from the Tax Court series, which
Treasury Commits to a Permanent and Accessible Simplified Filing Portal for Child Tax Credit Claimants
August 13, 2021
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TweetShareSharePin0 Shares One of the main stumbling blocks to full distribution of advance child tax credit (AdvCTC) payments has been the relative inaccessibility of the online sign-up tool for individuals who don’t have a 2019 or 2020 tax return on file with the IRS. Today the Treasury Department announced major improvements to the sign-up tool:
CCA Distinguishes Between Continuous Levies on Wages and Levies on Social Security Income
August 13, 2021
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TweetShareSharePin0 Shares A relatively brief IRS CCA briefly highlights some confusion concerning the effect of a continuous levy on wages on the ten-year statute of limitations on collections. That there is some confusion on the topic is not surprising. For example we have previously discussed problems the IRS has struggled to properly compute the SOL;
Automatic accounting method change procedures updated
August 12, 2021
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TweetShareSharePin0 Shares The IRS on Thursday updated the list of accounting method changes to which automatic change procedures apply (Rev. Proc. 2021-34). Generally, unless otherwise provided, a taxpayer must secure the IRS’s consent before changing its accounting method. To obtain the IRS’s consent, taxpayers file Form 3115, Application for Change in Accounting Method. Even when
Designation of Payment in Payroll Tax Cases
August 12, 2021
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TweetShareSharePin0 Shares We have not written about designation of payment in a long time. Early in the life of the blog we had two posts on the topic which you can find here and here. Designation of payment for any type of tax could have important consequences for the taxpayer and save lots of money.
Certification deadline extended for work opportunity tax credit
August 11, 2021
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TweetShareSharePin0 Shares The IRS issued Notice 2021-43 Tuesday providing transition relief for the deadline by which employers must request certification of employees as members of the designated community resident or qualified summer youth employee targeted groups for purposes of the work opportunity tax credit (WOTC). Under the transition relief, certain employers have until Nov. 8,
New safe harbor for ERC gross receipts calculation
August 11, 2021
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TweetShareSharePin0 Shares The IRS on Tuesday issued a safe harbor that allows an employer to exclude certain amounts received from other coronavirus economic relief programs in determining whether it qualifies for the employee retention credit (ERC) based on a decline in gross receipts (Rev. Proc. 2021-33). The amounts that can be excluded in calculated gross
