Tax & Current Accounting Topics

Dirty Dozen part 1: Taxpayers should be on the lookout for these scams 

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

https://accountinginstruction.info

COVID Tax Tip 2020-96, August 4, 2020  All tax scams put taxpayers at risk. This is the first of two tips taking a closer look at the IRS Dirty Dozen tax scam list. This year, taxpayers should be especially, watchful for aggressive schemes related to COVID-19 relief, including Economic Impact Payments.

Working Virtually: Use a virtual private network to secure remote locations; Part 3 of Security Summit tips for tax professionals 

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

https://accountinginstruction.info

As more tax professionals consider teleworking during COVID-19, the Internal Revenue Service and the Security Summit partners today urged practitioners to secure remote locations by using a virtual private network (VPN) to protect against cyber intruders.  A VPN provides a secure, encrypted tunnel to transmit data between a remote user via the Internet and the company network. As teleworking or working from home continues during the coronavirus, VPNs are critical to protecting and securing internet connections.

IRS issues proposed regulations for TCJA’s simplified tax accounting rules for small businesses 

https://www.irs.gov/newsroom/irs-issu...The Internal Revenue Service today issued proposed regulations (PDF) updating various tax accounting regulations to adopt the simplified tax accounting rules for small businesses under the Tax Cuts and Jobs Act (TCJA).

IRS grants additional relief for rehabilitation credit deadlines 

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

Because of the burdens the COVID-19 pandemic has placed on taxpayers claiming the rehabilitation credit, the Internal Revenue Service today issued Notice 2020-58 (PDF) that provides additional relief to taxpayers in satisfying the substantial rehabilitation test.  Projects must satisfy the "substantial rehabilitation test" within a 24- or 60-month period for determining whether the rehabilitation work is sufficient to qualify a building for the rehabilitation credit.

IRS issues final regulations and other guidance on business interest expense deduction limitation 

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

https://accountinginstruction.info

The Internal Revenue Service issued final regulations (PDF) regarding the provision of the Tax Cuts and Jobs Act that limits the deduction for business interest expense, including basic statutory amendments made by the CARES Act.

IRS: New law provides relief for eligible taxpayers who need funds from IRAs and other retirement plans 

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

https://accountinginstruction.info

The Internal Revenue Service provided a reminder today that the Coronavirus Aid, Relief, and Economic Security (CARES) Act can help eligible taxpayers in need by providing favorable tax treatment for withdrawals from retirement plans and IRAs and allowing certain retirement plans to offer expanded loan options.  Can I get money from my retirement account now? Under the CARES Act, individuals eligible for coronavirus-related relief may be able to withdraw up to $100,000 from IRAs or workplace retirement plans before December 31, 2020, if their plans allow. In addition to IRAs, this relief applies to 401(k) plans, 403(b) plans, profit-sharing plans and others.

Working Virtually: Use multi-factor authentication to protect accounts; Part 2 of Security Summit tips for tax professionals https://www.irs.gov/newsroom/working

https://accountinginstruction.info

WASHINGTON — With heightened threats during COVID-19, the Internal Revenue Service and Security Summit partners today called on tax professionals to select multi-factor authentication options whenever possible to prevent identity thieves from gaining access to client accounts.  Starting in 2021, all tax software providers will be required to offer multi-factor authentication options on their products that meet higher standards. Many already do so. A multi-factor or two-factor authentication offers an extra layer of protection for the username and password used by the tax professional. It often involves a security code sent via text.

IRS provides guidance on recapturing excess employment tax credits 

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

The Internal Revenue Service issued a temporary regulation and a proposed regulation to reconcile advance payments of refundable employment tax credits and recapture the benefit of these credits when necessary.  The regulations authorize the assessment of erroneous refunds of the credits paid under both the Families First Coronavirus Response Act (Families First Act) and Coronavirus Aid, Relief and Economic Security Act (CARES Act).

How taxpayers can troubleshoot common after-tax-day issues 

https://www.irs.gov/newsroom/how-taxp

https://accountinginstruction.info

While the deadline to file and pay federal income taxes has passed for most people, there are some taxpayers still facing tax-related issues.  Here are some tips for taxpayers handling some of the most common after-tax-day issues.  Check the status of a refund Taxpayers can check on their refund using the Where's My Refund? tool. It is available on IRS.gov and the IRS2Go app. Taxpayers without access to a computer can call 800-829-1954. To use this tool, taxpayers need the first Social Security number on the tax return, the filing status and the expected refund amount. The tool updates once daily, so there's no need to check more often.

All taxpayers should know the telltale signs of common tax scams 

https://www.irs.gov/newsroom/all-taxp

https://accountinginstruction.info

Every year scammers add new twists to well-known tax-related scams and 2020 is no exception.  Taxpayers should remember that the IRS generally first mails a bill to a taxpayer who owes taxes. There are special circumstances when the IRS will call or come to a home or business.