The TaxPayer Tribune Issue 41

IRS News

How IRS Taxes Lawsuit Settlements

Many plaintiffs win or settle a lawsuit and are surprised they have to pay taxes. Some don't realize it until tax time the following year when IRS Forms 1099 arrive in the mail. A little tax planning, especially before you settle, goes a long way.

Important charitable giving reminders for taxpayers | Internal Revenue Service

Taxpayers may be able to deduct donations to tax-exempt organizations on their tax return. As people are deciding where to make their donations, the IRS has a tool that may help.

Some important things all taxpayers should do before the tax year ends | Internal Revenue Service

The IRS reminds taxpayers there are things they should do before the current tax year ends on December 31.

NTA Blog: IRS Delays in Processing Amended Tax Returns Are Impacting TAS’s Ability to Assist Taxpayers - Taxpayer Advocate Service

As of October 30, 2021, the IRS had a backlog of over 2.7 million unprocessed amended returns. The IRS is processing these returns in the order received, and the current processing time posted on its operational page is more than 20 weeks. Our cases indicate that the processing time is considerably longer than 20 weeks, and as such, I have made the difficult decision to suspend accepting cases where the sole issue involves the processing of amended returns until the IRS is able to work through its backlog. We are also analyzing the upcoming filing season and expect to issue revised guidance for original filed returns.

News

Automatic extension for furnishing health coverage statements proposed

Proposed regulations would permanently allow an automatic extension for furnishing health care Forms 1095-B and 1095-C and would also specify that Medicaid services to test for and diagnose COVID-19 are not “minimum essential coverage.”

The IRS’s Thanksgiving Gift To PPP Borrowers

The generosity of Congress extended to tax treatment, by providing in the Consolidated Appropriations Act of 2021 that the forgiveness of the PPP loans did not constitute taxable income, and that the expenses paid with the borrowed monies would still be tax deductible.

Here's How to Get a Jump-Start on the Upcoming Tax Season

There are several ways to get a jump-start on the upcoming tax season, according to top financial advisors. Here are some steps for taxpayers.

From The Desk of Keith L. Jones, CPA

Understanding Your Taxpayer Bill of Rights

The Taxpayer Bill of Rights give every taxpayer a set of fundamental rights they should know when dealing with IRS. Your Bill of Rights codifies existing rights. They make them clear, more understandable, & available to all taxpayers.