the internal revenue service isn’t supposed to consider a taxpayer’s income or wealth when prioritizing taxpayer delinquent accounts. rather, the service is supposed to focus on balances due, pursuing collection of higher amounts.
obviously, many of those higher balances are owed by taxpayers (or tax dodgers) in the higher adjusted gross income brackets, and the irs believes that pursuing high balance dues effectively addresses high agis.
but the treasury inspector general for tax administration says that focusing on the balance due is increasing the risk of high earners skipping out on what they owe.
we all know how the irs works. they send a letter to a possibly delinquent taxpayer who, in quivering fear, returns a response that is slipped through the mail slot in the irs door, where it falls into a shredder that feeds into a massive onsite incinerator. the letter’s ashen remains are then loaded onto a rocket and shot toward alpha centauri, never to be seen again.
actually, that’s not entirely true. in 2019, irs compliance services collection operations managed to respond to 25 percent of its “inventory” of taxpayer delinquent account correspondence. the other 75 percent was considered “over-aged” after not being dealt with within 45 days of receipt. read more →
as a cpa, i deal with many types of clients’ personalities. if i chose only one type, i would not have had much of a practice. and i doubt i would have found that one perfect type too many times. i have been very fortunate to have really nice and very smart people as clients.
i believe entrepreneurs are the most stimulating people to work with. however, this doesn’t mean they don’t have peculiarities and that this sometimes makes them difficult to deal with – sometimes, but fortunately not most of the time.
here are six examples of types i had to put up with and had to learn to overlook some of the unfortunate traits. read more →
tax preparers would be wise to advise their clients to e-file this year. according to the government accountability office and the taxpayer advocate service, the irs is not keeping up with paper returns.
the covid-19 pandemic is only part of the problem. yes, of course, last year, with irs offices shuttered and phones shut down for months, a backlog built up. by the end of the year, “irs had a significant backlog of returns and taxpayer correspondence,” according to the gao. read more →
being named executor of an estate places many legal and fiduciary responsibilities on that person. an executor is entrusted with settling the decedent’s affairs, arranging for the payment of any income and estate taxes, and distributing the assets of the decedent’s estate. in most cases, people choose a loved one or family member to serve as executor.
“unfortunately, i have seen executors neglect their fiduciary duties during the estate administration period, which has exposed the decedent’s estate to unnecessary legal expenses, tax liability, and family feuds,” said jason trenton, a top trust and estate attorney in the los angeles office of venable llp’s tax and wealth planning practice. read more →
question: we are in an era of paperless procedures and files, but many times clients send in paper documents, cds or stick drives, besides emailing their information or using our portal.
irs commissioner charles rettig says the backlog of millions of returns will remain unresolved for months more.
“we would hope to be through this backlog by the summer,” rettig told house ways and means oversight subcommittee chairman bill pascrell, who said 24 million returns are jammed in the irs pileup. rettig countered with 2.4 million, the number of individual returns.
his testimony came a day after the government announced it would extend the filing deadline from april 15 to may 17, with crucial details still to be determined. the new rules sent tax software companies rushing to push out updates and left accountants and their clients in limbo. and, he said the delay in the tax-filing deadline could postpone the launch of a new monthly child tax credit payment program,
the accounting profession sector by sector generally looks slightly brighter, with most reporting headcount growth for the month – but losses for the year.
exceptions include the profession overall, which is taking a 0.2 percent dip, tax preparation services up for the year 3.3 percent, and bookkeeping, up 1 percent.
four reasons not to let people go after tax season.exclusively for pro members. log in here or 2022世界杯足球排名 today.
and the irs is looking the other way.
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