Yearly Archives: 2020

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…

2020-08-27 https://www.irs.gov/pub/irs-pdf/p5388.pdf p5388Download

August 19, 2020 While most third-party payroll servicers provide quality service, there are some that leave businesses vulnerable to unpaid bills, the IRS announced, urging employers that outsource payroll functions to take certain steps to protect themselves and explaining the various classifications of providers. A third-party arrangement with a certified professional employer organizations (CPEO), payroll service provider (PSP), or reporting agent (RA) may be right for many employers, the IRS…

IRS issues Guidance issued on Economic Impact Payments payments sent to decedents 2020-05-06 Q10. Does someone who has died qualify for the Payment? (added May 6, 2020) A10. No. A Payment made to someone who died before receipt of the Payment should be returned to the IRS by following the instructions about repayments. Return the entire Payment unless the Payment was made to joint filers and one spouse had not died before…

IRS Partial Re-Opening Status 2020-05-06 The IRS issued a statement on Saturday, April 25 saying that the agency has requested, but not required, thousands of employees to volunteer to return to work, and provided an offer for incentive pay. The IRS said: "No employees have been requested to return to work in a manner inconsistent with federal COVID-19 guidelines, and the requirement for employees voluntarily returning to the workplace to…

Missouri Department of Revenue extends tax filing deadline, allows additional time to renew driver licenses and motor vehicle registrations 2020-04-21 Mirroring the federal guidance issued by the Internal Revenue Service, the Missouri Department of Revenue announced today that it will provide special tax filing and payment relief to individuals and corporations in response to the COVID-19 outbreak. The Department is also implementing automatic extensions for expiring driver licenses and motor…