Due to the economic impacts of COVID-19, the novel coronavirus, many individuals have begun reassessing their personal finances including their asset holdings. Some of this reassessment has occurred due to loss of income or simply accelerating future plans. One of these considerations…Read More
As COVID-19, the novel coronavirus, continues its effect on our lives, one important issue creating cause of concern is one’s home especially if you rent. While the economy is slowly opening up, many individuals are having difficulty making regular monthly payments including paying their rent. Now, the good news for tenants is the government has provided some assistance for those renting. Under CARES Act, landlords cannot evict tenants for failure to pay rent through July 24th and must issue a 30-day notice thereafter for eviction for purposes. The moratorium is enforced on properties financed through federal housing programs or otherwise…Read More
The current COVID-19 pandemic has caused massive ripple effects throughout the global economy. In the US alone, the novel coronavirus has led to many business closures with small businesses being the most impacted. Thankfully, the federal government passed the Payroll Protection Program (PPP) as part of the CARES Act. The program provided funds to small businesses to cover payroll expenses, rent, utilities, and debt obligations. The good news regarding the program, in addition to receiving a loan to help cover these expenses, is the funds used in the first 8 weeks from the loan origination date can be forgiven if…Read More
As everyone is aware, COVID-19, also known as the novel coronavirus, has caused great turmoil in our lives. Along with the obvious issues such as the virus pandemic itself and significant job loss, there have been many overlooked consequences of the pandemic such as difficulty paying bills. One of those bills no one has been paying attention to has been the inability to pay one’s taxes to the Internal Revenue Service (i.e., IRS). Now, the IRS has reduced staff significantly because of the COVID-19 pandemic and has shifted its focus to ensure the stimulus payments from the CARES Act are…Read More
Throughout the month of March, we discussed information that had to be reported to the Internal Revenue Service (“IRS”) if a taxpayer wished to reduce their tax debt. Among this information is the taxpayer’s income, expenses, and any assets he/she may own. Here is a quick recap of the information we brought you during the month: Income That Must Be Reported Personal income that must be reported ranges from self-employment income to interest in any dividends the taxpayer receives. Remember, if you are self-employed, you must ensure to report the corresponding expenses to the income generated. Also, if reporting any…Read More
This week, we are continuing our discussion about the process to reduce your IRS tax debt, and the information that must be reported to the Internal Revenue Service (“IRS”). In addition to income and expenditures that must be reported, the IRS also requires that taxpayers wishing to reduce their debt report certain assets that they own. Taxpayers should err on the side of caution and report any and all assets held in their ownership, whether these assets are foreign or domestic. Here is a quick list of assets that must be reported. Like with our previous discussion, we will split…Read More
When attempting to reduce one’s debt, the Internal Revenue Service (“IRS”) needs to be provided with an accurate picture of one’s finances. If you are seeking to et your tax debt reduced or permanently eliminated, your tax professional will need certain information from you that they will provide to the IRS. As we discussed last week, income has to be reported; but, income is not the only thing that needs to be reported – the IRS also has to be provided with information about the taxpayer’s expenses. In order to ensure accuracy, information should be based on the last three…Read More
The Tax Code has made some changes in terms of reducing tax debt with the IRS. Keep in mind, however, that if you had debt prior to the enactment of the Code, you still have this debt balance. Therefore, if you are seeking to get your tax debt reduced or eliminated, your tax professional (e.g., Enrolled Agent, Attorney) will need certain pieces of information from you. In order to expedite the process of reducing your tax debt, there is certain information you need to provide to your tax professional to report to the Internal Revenue Service (“IRS”). Specifically, the IRS…Read More
In previous weeks, we have discussed changes to the Tax Cuts and Jobs Act that many people are aware of, such as tax credits and small business taxes. However, there are a number of things you might not know, but should, with respect to the Act. These changes are some that the general public does not realize the importance of, but in a few years will be happy to know of. Repatriation Repatriation, generally, is the term used to describe money returning to its home country. As you can imagine, repatriation applies to U.S. companies that have overseas business. Normally,…Read More
One of the main changes to the Tax Cuts and Jobs Act is certain tax credits that reduce an individual taxpayers’ liability. While most of the tax credits have, roughly, stayed the same, it is important to understand what credits have changed so taxpayers can properly navigate how to take advantage of those changes. However, before discussing the new changes, it is important to discuss the difference between refundable and non-refundable credits as this aspect of tax credits has not changed and has a direct impact on how the new law may benefit taxpayers. Refundable v. Non-Refundable Tax Credits As…Read More
