1) Form 1099 NEC for California –

We discovered the IRS is not forwarding the Forms 1099-NEC to most states…as it has for Forms 1099-MISC in past years.   This is because the form is new and, oddly, the normal document sharing process between the I.R.S. and state tax authorities has not been established for this particular form. 

For California filing purposes, I have attached the link to California FTB 1099 info sheet for your reference. 

https://www.ftb.ca.gov/file/business/information-returns.html

The 1099-NECs are due to California 2/28/21 per the attachment.  Since that date is a Sunday, it is extended to Monday, 3/1/21.
If you used a service to process your 1099s, please check with them to see if they can (or did) e-file the state copy for you.  If you did them manually, you can mail the paper form.  The address to file the paper forms is:

Franchise Tax Board
PO Box 942840
Sacramento, CA 94240-6090

As an additional option, GROCO does have an FTB Swift e-filing account.  To use this, we will need to input your company information and details from your Tax Year 2020 IRS Form 1099s in our system before we can e-file them.  Please let us know if you would like this option.

If you are located in a different state and need assistance with that state’s requirements, please contact us.

2) IRS Apology regarding Notices for unfiled returns:
https://www.irs.gov/newsroom/irs-statement-about-cp59-notices

3) Economic Impact Payments: 
IRS Website Information:
https://www.irs.gov/newsroom/as-required-by-law-all-first-and-second-economic-impact-payments-issued-eligible-people-can-claim-recovery-rebate-credit

Forbes Article:
https://www.forbes.com/sites/anthonynitti/2021/02/09/democrats-propose-round-three-of-covid-related-stimulus-checks-what-you-need-to-know/?sh=425638de27f9

4) Educator Deductions for COVID protective supplies:
https://www.irs.gov/newsroom/educators-can-now-deduct-out-of-pocket-expenses-for-covid-19-protective-items

5) PPP forgiveness: One step closer for California businesses (02-18-21)
“Governor Gavin Newsom, Senate President pro tempore Toni G. Atkins, and Assembly Speaker Anthony Rendon announced that they have reached an agreement on a package of immediate actions that will speed needed relief to individuals, families, and businesses suffering the most significant economic hardship from the COVID-19 recession.
Included in the agreement is partial conformity to new federal tax treatment for loans provided through the Paycheck Protection Program, allowing companies to deduct up to $150,000 in expenses covered by the PPP loan. All businesses that took out loans of $150,000 or less would be able to maximize their deduction for state purposes. Firms that took out higher loans would still be subject to the same ceiling of $150,000 in deductibility. This tax treatment would also extend to the Economic Injury Disaster Loans as well.
The proposal also includes stimulus payments to individuals, fee waivers for bars and restaurants, and continued grants of up to $25,000 for California businesses.
Do not start filing returns and excluding up to $150,000 from clients’ PPP loan forgiveness, as this is not law yet.”   (Spidell Publishing, Inc.) 
News Release: Office of Governor Gaving Newsom: 
https://www.gov.ca.gov/2021/02/17/governor-newsom-legislative-leaders-announce-immediate-action-agreement-for-relief-to-californians-experiencing-pandemic-hardship/

The IRS Has 3 Million Unopened Pieces of Mail!

Ron Cohen has more than 33 years experience in public accounting and related industry work. He earned an undergraduate accounting degree from the University of Illinois, Chicago, and then a Masters in Taxation from Golden Gate University. Ron has extensive knowledge in International Tax and has traveled extensively throughout Europe and Asia handling tax issues. He has also served as a tax director for a company with sales in excess of $2 billion. Ron has taught courses in taxation and financial accounting at Ohlone Community College. Ron lives in Fremont with his wife, who teaches English at Mission San Jose High School, and has two sons. Prior to his life as a CPA advisors, Ron did some stand-up comedy in Chicago and received advice from several comedians with national T.V. shows. However, after observing that the vast majority of comedians have a very low taxable income, Ron decided to follow his father’s example and become a CPA.

About The Show:
Hello and welcome. This is Ron Cohen. I’m a tax partner with the firm of Greenstein, Rogoff, Olsen & Co., LLP and we’re located in beautiful downtown Fremont, California. I appreciate you signing in to listen to my self-indulgent, and sometimes narcissistic comments about the tax system. 
 
No Reliance:
Take no reliance on anything you hear on this podcast. This is mostly for entertainment and education. In order to get an opinion from me or my firm you have to sign an engagement letter and give us all of the facts. After we do some research about your situation we’ll come back and formally give you an opinion. And only then can you use that advice for purposes of entering into any transaction or filing a tax return.
 
Plagiarism is Okay!
Everything in the tax rules is from the Internal Revenue Code, its regulations, court cases, and various internal memorandums by the Internal Revenue Service. Lots of lawyers and CPAs write very good articles that we will often attach in the show notes. They are trying to show how smart they are to the public so everyone copies from everyone else, and I certainly want to give them credit. We're not writing any novels, nor creating deep or original thoughts here.
 
No Politics
We try to stay out of general politics, however tax law is developed through legislation in Congress and anything that's legislative has its own political ups and downs. And I feel free to comment on that.
 
How I Help:
Our firm does around 1400 tax returns for various people. The demographics range from little grandmothers all the way up to high tech executives and multinational corporations. We also specialize in family office services for wealthy groups with far flung entities and we also help those groups with things such as bill paying and taking care of their day-to-day financial operations
 
No Cheerleader for the Tax System:
Our tax system is intrusive, an invasion of privacy and it's tedious. You need to look at a 12 step flowchart to figure out in some cases whether you can take your mortgage interest deduction. It is part of the technocratic Administrative State that has built up in this country since World War Two, and I don't like it. Other countries have simplified the tax system in many ways, despite this we always try to get an A+ (not an A-, or a B, or a C) in our work and make sure it is accurate.  Well prepared tax returns rarely get audited, and the best tax audit, is the one that never comes!
 
Please let us know if there are specific topics you'd like to hear about in future episodes.
 
Ron Cohen, CPA
Partner at Greenstein, Rogoff, Olsen & Co., LLP
Email:  rcohen@groco.com
510.797.8661

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Today we discuss: 
-A review of year end tax planning issues and strategies

About The Show:
Hello and welcome. This is Ron Cohen. I’m a tax partner with the firm of Greenstein, Rogoff, Olsen & Co., LLP and we’re located in beautiful downtown Fremont, California. I appreciate you signing in to listen to my self-indulgent, and sometimes narcissistic comments about the tax system.
 
No Reliance:
Take no reliance on anything you hear on this podcast. This is mostly for entertainment and education. In order to get an opinion from me or my firm you have to sign an engagement letter and give us all of the facts. After we do some research about your situation we’ll come back and formally give you an opinion. And only then can you use that advice for purposes of entering into any transaction or filing a tax return.
 
Plagiarism is Okay!
Everything in the tax rules is from the Internal Revenue Code, its regulations, court cases, and various internal memorandums by the Internal Revenue Service. Lots of lawyers and CPAs write very good articles that we will often attach in the show notes. They are trying to show how smart they are to the public so everyone copies from everyone else, and I certainly want to give them credit. We're not writing any novels, nor creating deep or original thoughts here.
 
No Politics
We try to stay out of general politics, however tax law is developed through legislation in Congress and anything that's legislative has its own political ups and downs. And I feel free to comment on that.
 
How I Help:
Our firm does around 1400 tax returns for various people. The demographics range from little grandmothers all the way up to high tech executives and multinational corporations. We also specialize in family office services for wealthy groups with far flung entities and we also help those groups with things such as bill paying and taking care of their day-to-day financial operations
 
No Cheerleader for the Tax System:
Our tax system is intrusive, an invasion of privacy and it's tedious. You need to look at a 12 step flowchart to figure out in some cases whether you can take your mortgage interest deduction. It is part of the technocratic Administrative State that has built up in this country since World War Two, and I don't like it. Other countries have simplified the tax system in many ways, despite this we always try to get an A+ (not an A-, or a B, or a C) in our work and make sure it is accurate.  Well prepared tax returns rarely get audited, and the best tax audit, is the one that never comes!
 
Please let us know if there are specific topics you'd like to hear about in future episodes.
 
Ron Cohen, CPA
Partner at Greenstein, Rogoff, Olsen & Co., LLP
Email:  rcohen@groco.com
510.797.8661


Show Notes:
Year-end Tax Planning: https://www.cchwebsites.com/content/pdf/tax_brief/us/2022_Year_End_Tax_Planning_Briefing.pdf

Roth Conversions – and back-door Roth IRAs.
https://www.investopedia.com/roth-ira-conversion-rules-4770480

https://www.wealthyaccountant.com/2022/04/11/roth-conversion/

Health Savings Account (HSA)
https://www.healthcare.gov/glossary/health-savings-account-hsa/

Episode 32: Year End Tax Planning

Today we discuss: 
-IRS inflation related adjustments to tax rates
-Social Security inflation adjustments
-The status of tax law legislation post mid-term elections


About The Show:
Hello and welcome. This is Ron Cohen. I’m a tax partner with the firm of Greenstein, Rogoff, Olsen & Co., LLP and we’re located in beautiful downtown Fremont, California. I appreciate you signing in to listen to my self-indulgent, and sometimes narcissistic comments about the tax system.
 
No Reliance:
Take no reliance on anything you hear on this podcast. This is mostly for entertainment and education. In order to get an opinion from me or my firm you have to sign an engagement letter and give us all of the facts. After we do some research about your situation we’ll come back and formally give you an opinion. And only then can you use that advice for purposes of entering into any transaction or filing a tax return.
 
Plagiarism is Okay!
Everything in the tax rules is from the Internal Revenue Code, its regulations, court cases, and various internal memorandums by the Internal Revenue Service. Lots of lawyers and CPAs write very good articles that we will often attach in the show notes. They are trying to show how smart they are to the public so everyone copies from everyone else, and I certainly want to give them credit. We're not writing any novels, nor creating deep or original thoughts here.
 
No Politics
We try to stay out of general politics, however tax law is developed through legislation in Congress and anything that's legislative has its own political ups and downs. And I feel free to comment on that.
 
How I Help:
Our firm does around 1400 tax returns for various people. The demographics range from little grandmothers all the way up to high tech executives and multinational corporations. We also specialize in family office services for wealthy groups with far flung entities and we also help those groups with things such as bill paying and taking care of their day-to-day financial operations
 
No Cheerleader for the Tax System:
Our tax system is intrusive, an invasion of privacy and it's tedious. You need to look at a 12 step flowchart to figure out in some cases whether you can take your mortgage interest deduction. It is part of the technocratic Administrative State that has built up in this country since World War Two, and I don't like it. Other countries have simplified the tax system in many ways, despite this we always try to get an A+ (not an A-, or a B, or a C) in our work and make sure it is accurate.  Well prepared tax returns rarely get audited, and the best tax audit, is the one that never comes!
 
Please let us know if there are specific topics you'd like to hear about in future episodes.
 
Ron Cohen, CPA
Partner at Greenstein, Rogoff, Olsen & Co., LLP
Email:  rcohen@groco.com
510.797.8661


Show Notes:

A Greener Home Can Save You Green Under the Inflation Reduction Act
https://www.aslcpa.com/newsletters/clean-energy-credits/#more-3347

IRS provides tax inflation adjustments for tax year 2023
https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2023

Leadership changes—and challenges—dominate as lawmakers return for lame duck session
https://www2.deloitte.com/content/dam/Deloitte/us/Documents/Tax/us-tax-taxnewsandviews-221118.pdf

Episode 31: IRS inflation related adjustments to tax rates

00:00 Intro
01:47 Caveats
04:00 The IRS comments on the passage of funding under the Inflation Reduction Act
11:11 A Reminder about Unclaimed Property Report and the new tax return questions about them
12:11 AICPA issues a letter to the IRS asking for help on new forms K-2 & K-3….road map for auditors.
14:52 Be Very Careful having your tax return done by a VITA volunteer.  Long history of errors.
19:32 Ed Zollars CPA very detailed analysis of the Inflation Reduction Act 
20:19 Cars must have 80% US assembly to qualify for EV credit.

Links:
IRS Commissioner Charles P. Rettig:
https://www.irs.gov/newsroom/irs-statement-by-irs-commissioner-chuck-rettig-on-the-inflation-reduction-act


Escheatment: https://sco.ca.gov/upd_msg.html

AICPA Urges IRS to Provide Additional Guidance on Schedule K-2 and K-3 Reporting: 
https://www.taxpayeradvocate.irs.gov/news/successstories-tas-assists-victims-of-vita-site-preparer-fraud/

Ed Zollars Podcast on the Inflation Reduction Act:
https://podcasts.apple.com/us/podcast/2022-08-14-highlights-of-the-inflation-reduction-act-of-2022/id1114311870?i=1000576058930

EV Vehicle Credits:
https://techcrunch.com/2022/09/02/a-complete-guide-to-the-new-ev-tax-credit/


About The Show:
Hello and welcome. This is Ron Cohen. I’m a tax partner with the firm of Greenstein, Rogoff, Olsen & Co., LLP and we’re located in beautiful downtown Fremont, California. I appreciate you signing in to listen to my self-indulgent, and sometimes narcissistic comments about the tax system.
 
No Reliance:
Take no reliance on anything you hear on this podcast. This is mostly for entertainment and education. In order to get an opinion from me or my firm you have to sign an engagement letter and give us all of the facts. After we do some research about your situation we’ll come back and formally give you an opinion. And only then can you use that advice for purposes of entering into any transaction or filing a tax return.
 
Plagiarism is Okay!
Everything in the tax rules is from the Internal Revenue Code, its regulations, court cases, and various internal memorandums by the Internal Revenue Service. Lots of lawyers and CPAs write very good articles that we will often attach in the show notes. They are trying to show how smart they are to the public so everyone copies from everyone else, and I certainly want to give them credit. We're not writing any novels, nor creating deep or original thoughts here.
 
No Politics
We try to stay out of general politics, however tax law is developed through legislation in Congress and anything that's legislative has its own political ups and downs. And I feel free to comment on that.
 
How I Help:
Our firm does around 1400 tax returns for various people. The demographics range from little grandmothers all the way up to high tech executives and multinational corporations. We also specialize in family office services for wealthy groups with far flung entities and we also help those groups with things such as bill paying and taking care of their day-to-day financial operations
 
No Cheerleader for the Tax System:
Our tax system is intrusive, an invasion of privacy and it's tedious. You need to look at a 12 step flowchart to figure out in some cases whether you can take your mortgage interest deduction. It is part of the technocratic Administrative State that has built up in this country since World War Two, and I don't like it. Other countries have simplified the tax system in many ways, despite this we always try to get an A+ (not an A-, or a B, or a C) in our work and make sure it is accurate.  Well prepared tax returns rarely get audited, and the best tax audit, is the one that never comes!
 
Please let us know if there are specific topics you'd like to hear about in future episodes.
 
Ron Cohen, CPA
Partner at Greenstein, Rogoff, Olsen & Co., LLP
Email:  rcohen@groco.com
510.797.8661

Episode 30: IRS Comments on Inflation Reduction Act, Take Caution with VITA & New EV Credit Details

If you didn't file your tax return during covid, the IRS is giving you a break from failure to file penalties. You may be able to take action by September 30, 2022, for certain international forms. All the domestic forms needed to be already filed in August of the following year, but you may be able to get previously assessed penalties reversed or fight back a tax notice that arrives that fits into the time periods addressed in the Notice. 

Ever wonder what the IRS's cafeteria looks like? Currently it's full of paperwork they still need to process. Whether this was released to justify their new budget increase or not, its still a major improvement over the semi trailers full of unopened mail parked out back that we talked about last year. 

IRS Cafeteria: https://www.washingtonpost.com/opinions/interactive/2022/irs-pipeline-tax-return-delays/?utm_source=morning-10&utm_medium=email&utm_campaign=20220809&utm_content=article10-readmore

Widespread Penalty Waivers: https://www.irs.gov/pub/irs-drop/n-22-36.pdf


About The Show:
Hello and welcome. This is Ron Cohen. I’m a tax partner with the firm of Greenstein, Rogoff, Olsen & Co., LLP and we’re located in beautiful downtown Fremont, California. I appreciate you signing in to listen to my self-indulgent, and sometimes narcissistic comments about the tax system.
 
No Reliance:
Take no reliance on anything you hear on this podcast. This is mostly for entertainment and education. In order to get an opinion from me or my firm you have to sign an engagement letter and give us all of the facts. After we do some research about your situation we’ll come back and formally give you an opinion. And only then can you use that advice for purposes of entering into any transaction or filing a tax return.
 
Plagiarism is Okay!
Everything in the tax rules is from the Internal Revenue Code, its regulations, court cases, and various internal memorandums by the Internal Revenue Service. Lots of lawyers and CPAs write very good articles that we will often attach in the show notes. They are trying to show how smart they are to the public so everyone copies from everyone else, and I certainly want to give them credit. We're not writing any novels, nor creating deep or original thoughts here.
 
No Politics
We try to stay out of general politics, however tax law is developed through legislation in Congress and anything that's legislative has its own political ups and downs. And I feel free to comment on that.
 
How I Help:
Our firm does around 1400 tax returns for various people. The demographics range from little grandmothers all the way up to high tech executives and multinational corporations. We also specialize in family office services for wealthy groups with far flung entities and we also help those groups with things such as bill paying and taking care of their day-to-day financial operations
 
No Cheerleader for the Tax System:
Our tax system is intrusive, an invasion of privacy and it's tedious. You need to look at a 12 step flowchart to figure out in some cases whether you can take your mortgage interest deduction. It is part of the technocratic Administrative State that has built up in this country since World War Two, and I don't like it. Other countries have simplified the tax system in many ways, despite this we always try to get an A+ (not an A-, or a B, or a C) in our work and make sure it is accurate.  Well prepared tax returns rarely get audited, and the best tax audit, is the one that never comes!
 
Please let us know if there are specific topics you'd like to hear about in future episodes.
 
Ron Cohen, CPA
Partner at Greenstein, Rogoff, Olsen & Co., LLP
Email:  rcohen@groco.com
510.797.8661

Episode 29: The IRS is Waiving Penalties For Not Filing During Covid, If....

If you’ve had any student loan debt cancelled as a result of President Biden’s New Executive Order on Student Loan Forgiveness, be prepared when it comes time to file your tax return. That $10,000 of debt cancellation may be considered taxable income.   

Also the middle class in California is receiving a nice surprise… the state is calling it a tax refund? Whether you call this coming check an inflation stimulus a tax refund or simply the redistribution of wealth, California brought in more money than they expected and surprisingly they’re giving it back.  

Forgiven Student Loans partially taxable?
https://justthenews.com/government/state-houses/thirteen-states-may-tax-canceled-student-loans

California middle class tax refund. 
https://www.ftb.ca.gov/about-ftb/newsroom/middle-class-tax-refund/index.html?WT.ac=Global_banner_MCTR

About The Show:
Hello and welcome. This is Ron Cohen. I’m a tax partner with the firm of Partner at Greenstein, Rogoff, Olsen & Co., LLP and we’re located in beautiful downtown Fremont, California. I appreciate you signing in to listen to my self indulgent, and sometimes narcissistic comments about the tax system. 

No Reliance:
Take no reliance and anything you hear on this podcast. This is mostly for entertainment and education. In order to get an opinion from me or me firm you have to sign an engagement and give us all of the facts. After we do some research about your situation we’ll come back and formally give you an opinion. And only then can you use that advice for purposes of entering into any transaction or filing a tax return. 
Plagiarism is Okay!
Everything in tax rule is laws are from the internal revenue codes, regulations, arrays, court cases, various internal memorandum by the Internal Revenue Service. Lots of lawyers and CPAs write very good articles that we will often attach in the show notes. And just trying to show how smart they are the public so everyone copies from everyone else and I certainly want to give credit. We're not writing any novels or original thoughts here. 
No Politics
We try to stay out of general politics, however tax law is developed through legislation in Congress and anything that's legislative has its own political ups and downs. And I feel free to comment on that.

How I Help:
Our my firm does around 1400 tax returns for various people. The demographics range from little grandmothers all the way up to high tech executives and multinational corporations. We also specialize in family office services for wealthy groups with far flung entities and we also help those groups with things such as bill paying and taking care of their day to day financial operations
No Cheerleader for the Tax System
Our tax system is intrusive, an invasion of privacy and It's tedious. You need to look at a 12 step flowchart to figure out in some cases whether you can take your mortgage interest deduction. It is part of the technocratic administrative state that is built up in this country since World War Two, and I don't like it. Other countries have simplified the tax system in many ways, despite this we always try to get an A+ on our work and make sure it is accurate.  

Please let us know if there are specific topics you'd like to hear about in future episodes.

Ron Cohen, CPA
Partner at Greenstein, Rogoff, Olsen & Co., LLP
rcohen@groco.com
510.797.8661

The IRS Has 3 Million Unopened Pieces of Mail!

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