Sally P. Schreiber, J.D.,
The IRS on Tuesday issued a new form and instructions for employers to use to obtain advance payments of three tax credits that were created to help businesses cope with the coronavirus pandemic.
Employers may file new Form 7200, Advance Payment of Employer Credits Due to COVID-19, to obtain advances of employment taxes that are refundable as a result of the new tax credits: the employee retention credit, the qualified sick leave credit, and the qualified family leave wages credit.
The qualified sick leave credit and the …

You should protect your personal and financial data from criminals. Thieves use your data to file bogus tax returns and commit crimes while impersonating you.
Follow these steps to protect yourself and your data.
Keep a secure computer.
Don’t leave personal information; lying around.
Give personal information only over encrypted and trusted websites.
Use strong passwords and protect them.
Avoid phishing and malware.
Verify contact information about companies or agencies by going directly to their website.
Think twice before opening email attachments.
Don’t automatically download attachments.
Download and install software only from known and trusted websites.
Protect personal information.
Forward …

From: Tax Connections
Social Security benefits include monthly retirement, survivor, and disability benefits; they do not include Supplemental Security Income (SSI) payments, which are not taxable.
Generally, you pay federal income taxes on your Social Security benefits only if you have other substantial income in addition to your benefits such as wages, self-employment, interest, dividends and other taxable income that must be reported on your tax return.
Your income and filing status affect whether you must pay taxes on your Social Security. An easy method of determining whether any of your benefits might …

Issue Number: Tax Tip 2020-34
When the IRS makes a determination about someone’s tax return, that person can challenge the IRS’s decision. In fact, the taxpayer has a right to do so. This is one of ten rights laid out in the Taxpayer Bill of Rights. They also have the right for that challenge to be heard by the agency.
This means taxpayers have the right to:
Object to formal IRS actions or proposed actions and provide additional documentation in their response.
Expect the IRS to consider their timely objections and documentation promptly …

FEBRUARY 19, 2020 • LAURA DAVISON
There’s a new incentive to file a tax return this year: an Internal Revenue Service agent may be making a house call if you don’t.
The IRS is increasing efforts to reach high-income individuals who have failed to file at least one or more tax returns in recent years as a last-ditch attempt to encourage compliance, the agency said on Wednesday. This would be the final step before the agency would pursue more severe procedures, including civil or criminal action against that individual, the IRS said.
The …