Tax & Current Accounting Topics

Now available: IRS Form 1040-X electronic filing 

https://www.irs.gov/newsroom/now-avai

https://accountinginstruction.info

Major IRS milestone helps taxpayers correct tax returns with fewer errors, speeds processing IR-2020-182, August 17, 2020  WASHINGTON — Marking a major milestone in tax administration, the Internal Revenue Service announced today that taxpayers can now submit Form 1040-X electronically with commercial tax-filing software.  As IRS e-filing has grown during the past 30 years, the 1040-X, Amended U.S. Individual Income Tax Return, has been one of the last major individual tax forms that needed to be paper filed. Today's announcement follows years of effort by the IRS, and the enhancement allows taxpayers to quickly electronically correct previously filed tax returns while minimizing errors.

IRS takes new steps to ensure people with children receive $500 Economic Impact Payments 

https://www.irs.gov/newsroom/irs-take

https://accountinginstruction.info

The Internal Revenue Service continues to look for ways to help people who were unable to provide their information in time to receive Economic Impact Payments for their children. As part of that effort, the Internal Revenue Service announced today it will reopen the registration period for federal beneficiaries who didn't receive $500 per child payments earlier this year.  The IRS urges certain federal benefit recipients to use the IRS.gov Non-Filers tool starting August 15 through September 30 to enter information on their qualifying children to receive the supplemental $500 payments.

Global disruption of three terror finance cyber-enabled campaigns (PDF) 

https://www.irs.gov/pub/irs-news/doj

https://accountinginstruction.info

WASHINGTON – The Justice Department today announced the dismantling of three terrorist financing cyber-enabled campaigns, involving the al-Qassam Brigades, Hamas’s military wing, al-Qaeda, and Islamic State of Iraq and the Levant (ISIS). This coordinated operation is detailed in three forfeiture complaints and a criminal complaint unsealed today in the District of Columbia. These actions represent the government’s largest-ever seizure of cryptocurrency in the terrorism context.

Taxpayers must pay no more than the correct amount of tax 

https://www.irs.gov/newsroom/taxpayer

https://accountinginstruction.info

 IRS Tax Tip 2020-102, August 13, 2020  A taxpayer may owe money when they complete and file their tax return. They have the right to pay only the amount of tax legally due, including interest and penalties, and to have the IRS apply all tax payments properly. This is one of ten rights known collectively as the Taxpayer Bill of Rights.

Using the Tax Withholding Estimator will help taxpayers avoid surprises next year 

https://www.irs.gov/newsroom/using-th

https://accountinginstruction.info

Using the IRS Tax Withholding Estimator can help taxpayers have the right amount of tax withheld and avoid surprises when filing next year.  Income taxes are pay-as-you-go. By law, taxpayers are required to pay most of their tax as income is received. There are two ways to do this:

Financial safety is an important part of disaster preparedness 

https://www.irs.gov/newsroom/financia

https://accountinginstruction.info

IRS Tax Tip 2020-99, August 10, 2020  Before a natural disaster strikes, taxpayers are encouraged to prepare, if possible. This includes developing evacuation plans, putting together kits of essential supplies and putting financial safety measures in place.   To help protect their financial safety in a disaster situation, taxpayers should:

Good recordkeeping is an essential element of tax planning 

https://www.irs.gov/newsroom/good-re

https://accountinginstruction.info

Now is a good time for people to begin thinking about next year's tax return. While it may seem early to be preparing for 2021, reviewing your recordkeeping now will pay off when it comes time to file again.  Here are some suggestions to help taxpayers keep good records.

Working Virtually: Avoid phishing scams; Part 4 of Security 

https://www.irs.gov/newsroom/working

https://accountinginstruction.info

WASHINGTON — The Internal Revenue Service and the Security Summit partners today warned tax professionals to be alert to new phishing scams that try to take advantage of COVID-19, Economic Impact Payments and increased teleworking by practitioners.  The IRS, state tax agencies and the nation's tax industry urged tax firms to review and heighten their data protection plans this summer as cybercriminals step up efforts to steal client tax information. Crooks are targeting tax professionals as well as taxpayers.

Here’s what taxpayers need to know about the home office deduction 

irs.gov/newsroom/heres-what-taxpayers-need-to-know-about-the-home-office-deduction

https://accountinginstruction.info

 IRS Tax Tip 2020-98, August 6, 2020  The home office deduction allows qualifying taxpayers to deduct certain home expenses on their tax return. With more people working from home than ever before, some taxpayers may be wondering if they can claim a home office deduction when they file their 2020 tax return next year.  Here are some things to help taxpayers understand the home office deduction and whether they can claim it:

Dirty Dozen part 2: Thieves are constantly coming up with ways to scam taxpayers 

https://www.irs.gov/newsroom/dirty-do

https://accountinginstruction.info

COVID Tax Tip 2020-97, August 5, 2020  This is the second of two tips exploring the IRS Dirty Dozen tax scam list. Tax scams tend to rise during tax season or during times of crisis. Scam artists are using the COVID-19 pandemic to try to steal money and information from taxpayers.