Monthly Archives: September 2020

2020-09-25 Lenders should not file information returns or furnish payee statements under section 6050P of the Internal Revenue Code (Code) to report the amount of qualifying forgiveness with respect to covered loans made under the Paycheck Protection Program (PPP) administered by the Small Business Administration (SBA). Announcement 2020-12. Under the Coronavirus Aid, Relief, and Economic Security Act, Pub. L. No. 116-136, 134 Stat. 281 (March 27, 2020), as amended by…

2020-09-24 The IRS is processing a backlog of mail due to COVID-19, and paper checks mailed to the IRS mailed to the IRS with or without a tax return, may still be unopened. Taxpayers in this situation should not cancel their checks and should make sure funds remain available so the IRS can process them to avoid potential penalties and interest. The IRS credits payments using the postmarked date on…

2020-09-04 The IRS has a monthly program for tax professionals to provide information, discuss issues, and field questions. On the September 3 call, the IRS provided updated information on the presidential memorandum (“Payroll Tax Deferral Order”) that President Trump signed on August 8.There is an IRS web page at https://www.irs.gov/newsroom/guidance-issued-to-implement-presidential-memorandum-deferring-certain-employee-social-security-tax-withholding. A FAQ section is supposed to be coming “soon”. If you call the Notice 2020-65 Hotline at 202-317-5436 (not a…

2020-09-02 The Missouri Administrative Hearing Commission ("AHC") held that the fees paid for the taxpayer’s guide service were not paid to or in a place of amusement and not taxable. Angler Outfitters v. DOR, AHC No. 18-1143, August 20, 2020. Anglers only contested tax on guided trips, not tax on personal property sales or supply rentals. Anglers charged first-time customers the same rate it charges repeat customers. The charge included…

2020-09-02 IRS Statement, August 21, 2020 The IRS has suspended the mailing of three notices – the CP501, the CP503 and the CP504 – that go to taxpayers who have a balance due on their taxes. Although the IRS continues to make significant reductions in the backlog of unopened mail that developed while most IRS operations were closed due to COVID-19, this temporary adjustment to processing is intended to lessen…

2020-09-02 President Trump signed a presidential memorandum (“Payroll Tax Deferral Order”) on August 8. The Payroll Tax Deferral Order defers the employee's share of the 6.2% Social Security tax under Code Sec. 3101(a) (as well as the similar provision applicable to railroad employees under the Railroad Retirement Tax Act) payroll taxes from on wages or compensation paid during the period starting September 1 through December 31, 2020, for individuals making…

2020-09-02 The Bipartisan Budget Act of 2015 (Public Law No. 114-74) replaced the auditing and tax collection procedures for partnerships under the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) and the electing large partnership rules with the centralized partnership audit regime, with the centralized partnership audit regime, also referred to as BBA or PBBA, generally effective for tax years beginning January 2018. Under the BBA, the IRS generally assesses…