February 22, 2021
IRS mails 260,000 failure-to-file notices, but admits many likely are wrong – Kay Bell, Don’t Mess With Taxes. “The IRS last week acknowledged that it sent approximately 260,000 taxpayers notices that they had failed to file return for the 2019 tax year. Some, perhaps many, of those mailings, officially known as CP59 notices, likely are incorrect.”
“Pandemic processing delays: "Due to pandemic related shutdowns, the IRS has not completed processing all 2019 returns at this time," according to the agency's statement issued on Feb. 18.
"Therefore, the CP59 notices should not have been sent because some portion of the recipients may actually have filed a return that is still being processed," the IRS statement added.”
IRS says all stimulus payments have been sent – Naomi Jagoda, The Hill. “The IRS said this week that it has issued all of the coronavirus relief checks that it is legally permitted to disburse and that people who haven't received the full amount to which they are entitled can claim a credit on their 2020 tax returns.”
IRS Plan for Monthly Child Credit Distribution Lacks Details – William Hoffman, Tax Notes. “The IRS may be ready to distribute monthly child tax credit (CTC) payments to eligible families if Congress passes legislation, but exactly how remains unclear.”
CPA news to know: Why mobile workforce tax legislation matters – Neil Amato, Journal of Accountancy.
“Earlier in February, numerous amendments to the 2021 fiscal year budget resolution were voted on by the Senate. One of those nonbinding amendments, which passed unanimously by a voice vote, could lead to a lessening of an administrative burden for many employers and employees.
The amendment related to mobile workforce legislation, introduced by Sen. John Thune, R-S.D., and supported by Sen. Sherrod Brown, D-Ohio, which would extend the de minimis threshold to work in a state as a nonresident before owing state income taxes or being subject to withholding.”
Initial Remote Tax Court Proceedings Have Had Few Hiccups – Nathan Richman, Tax Notes($). “Both practitioners and IRS attorneys have been pleased by how the Tax Court’s Zoomgov remote proceeding platform has performed, though some have a few tweaks in mind.”
Online Gambling and Cryptocurrency Addresses for 2021 – Russ Fox, Taxable Talk. “If you have one or more foreign financial accounts and you have $10,000 aggregate in those account(s) at any time during 2019, you must file the Report of Foreign Bank and Financial Accounts (the “FBAR”).
“This is Form 114 from FINCEN. (The IRS and FINCEN now allege that foreign online poker accounts are “casino” accounts that must be reported as foreign financial accounts. The rule of thumb, when in doubt report, applies—especially given the extreme penalties.) You also should consider filing an FBAR if you have $10,000 or more in a non-US Cryptocurrency Exchange.”
There does seem to be some complications:
“There’s a problem, though. Most of these entities don’t broadcast their addresses. Some individuals sent email inquiries to one of these gambling sites and received politely worded responses (or not so politely worded) that said that it’s none of your business.”
Tax Capital Reporting Continues to Vex Partnership Community – Eric Yauch, Tax Notes. “The requirement to report partner capital accounts using the tax basis method this year is leading to practitioner frustration and a curiosity about what the government is trying to glean from that additional information.”
No tax hike, no corporate tax breaks in slim Illinois budget – John O’Connor, AP News. “Gov. J.B. Pritzker on Wednesday presented a slimmer state budget that would not increase income tax but would rely on transfers from other state accounts and the elimination of hundreds of millions of dollars of corporate tax breaks.”
A Dozen Camels Disqualified From Saudi Beauty Pageant Over Botox Injections – Laurel Wamsley, NPR. “Saudi media reported that a veterinarian was caught performing plastic surgery on the camels a few days before the pageant, according to UAE's The National. In addition to the injections, the clinic was surgically reducing the size of the animals' ears to make them appear more delicate.”
This is a roundup of tax news and opinion. Any opinions expressed or implied are those of the author and not necessarily those of Eide Bailly. Opinions found in linked items are those of the authors of the linked item, not of your bloggers or of Eide Bailly. “$” means link may be behind a paywall. Items here do not constitute tax advice.