The IRS eliminated Taxpayer Assistance Center walk-in service

2021-02-12 Appointments are required for non-cash payments, dropping off current year Form 1040 series tax returns, or obtaining forms. Taxpayers who do not have a pre-scheduled appointment are advised that service is by appointment, and to call the toll-free number, 844-545-5640. Taxpayers wil also be told of alternative services available for their issue. Information regarding appointment times was updated to state that time will be provided to clean workstations between…

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IRS mail delay update

2021-02-04 Although the IRS has publicized that it has "opened" the mail, it has apparently only managed to "process" the mail that has been opened through April 15, 2020.

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Parking lot tax refunds available to nonprofits

2021-01-15 The Taxpayer Certainty and Disaster Tax Relief Act of 2019 retroactively repealed Internal Revenue Code (IRC) Section 512(a)(7), implemented by the Tax Cuts and Jobs Act of 2017 (TCJA), Pub. L 115-97, which increased unrelated business taxable income (UBTI) by amounts paid or incurred for qualified transportation fringes. Congress had previously enacted this provision for amounts paid or incurred after December 31, 2017. To claim a refund or credit…

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Relief for Automobile Lease Valuation Rule Users, Notice 2021-7 (Jan. 4, 2021)

2021-01-13 Due to the COVID-19 pandemic, certain employers and employees who use the automobile lease valuation rule to determine the value of an employee’s personal use of an employer-provided automobile may switch to the vehicle cents-per-mile method. If an employer provides an employee with an automobile that is available to the employee for personal use, the value of the personal use must be included in the employee's gross income. Treas.…

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Change by Congress allows employers to obtain both a PPP loan and an Employee Retention Tax Credit (ERTC)

2021-01-06 Under the original CARES Act an employer could not receive both a PPP loan and an Employee Retention Tax Credit (ERTC, up to $5,000 per employee). Congress changed that so that you can obtain both. Up to $10,000 wages (including certain health plan costs) for each employee can be counted to determine the amount of the ERTC credit. This credit can apply to  wages paid after March 12, 2020.…

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IRS On-Line EIN Service Planned Outage

2020-12-22 The IRS on-line EIN service will be unavailable from approximately 5 p.m. Eastern time on Wednesday, Dec 23, 2020, until approximately 7 a.m. Eastern time on Monday, January 4, 2021, due to planned maintenance.

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Temporary Exception to Early Withdrawal Penalty on Retirement Plans

2020-12-19 The CARES Act added a new, temporary exception to the early distribution penalty onretirement plans that is very narrowly construed to COVID illness and business disruptions. The previously existing exceptions to early distribution penalties for IRA’s and/or other qualified retirement plans were not affected and are still available under existing law.

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Mailing of IRS notices delayed due to ongoing pandemic

2020-12-16 https://www.irs.gov/coronavirus/mailing-of-irs-notices-delayed-due-to-ongoing-pandemic Due to the volume of notices that needed to be printed and mailed after the IRS restarted issuing notices and due to the ongoing impact of the pandemic, the IRS continues to experience delays mailing backlogged notices to taxpayers. This delay impacts some, but not all, IRS notices dated from November 9 – November 23rd. The impacted notices are those requesting payment for tax owed or notifying taxpayers…

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IRM Interim Guidance: extends deviation of Enforcement, Exam Deviation Procedures

2020-12-11 The December 9, 2020, memorandum extends the approval period to deviate from IDR enforcement procedures and applies to the IDR enforcement process for taxpayers who are unable, due to the COVID-19 pandemic, to respond timely to an IDR. Notwithstanding this deviation, managers retain the discretion to continue with the IDR enforcement process when in their judgment the interests of tax administration warrant, for example cases with short statues or…

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The IRS Extened Suspension of Offer in Compromise Procedures

2020-12-11 An IRS memorandum dated October 16, 2020, rescinded and replaced Interim Guidance memorandum SBSE 05-1020-0080. Taxpayer Contact - Face-to-face public contact/field activities will only occur in exceptional cases, will not be routine or regularly occurring activities, and will be voluntary on the part of the IRS employee. Revenue Officers (ROs) may conduct face-to- face contacts and other field activities with the taxpayer, the taxpayer’s authorized representative or other members…

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