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Hurricane Milton Relief: Florida Now Has Until May 1, 2025 to File October 11, 2024
With much of the state of Florida declared a federal disaster area, the IRS this morning announced that all residents of Florida have until May 1, 2025 to file their tax returns that are on extension. This impacts not only 2023 tax returns on extension, but the 2024 filing deadline next April. Do note that […]
Russ
Disaster Relief Extension Impacts Millions in Illinois; Expect IRS to Give Relief to North Carolina Shortly October 1, 2024
The IRS announced this morning that tax deadlines have been postponed in several counties in Illinois due to recent severe weather in the Chicagoland area: The IRS is offering relief to any area designated by the Federal Emergency Management Agency (FEMA). Currently, this includes Cook, Fulton, Henry, St. Clair, Washington, Will and Winnebago counties in […]
Russ
Don’t Touch the Duct Tape! September 19, 2024
Yesterday, I had to call the IRS to obtain an address to mail a return to (it had to go to a special address), and discuss collection activities for another client. Unfortunately, the IRS computer system crashed. (It came back up late in the day.) This morning, I went to run some transcripts and, again, […]
Russ
Creative Math, IRS Style September 4, 2024
One of our clients made a mistake on his payroll tax deposits: He shorted the IRS $4,590. He realized his mistake, and immediately made a correcting payroll tax deposit (albeit late). There’s a penalty for this, and it’s 10% (based on the number of days his payment was late)–which he paid in advance of an […]
Russ
The Case of the Missing $632,825.18 August 22, 2024
The story you’re about to read is true. The names (and dollar amounts) have been changed to protect the innocent. John and Mary Smith, long-time clients, filed an amended return for the 2017 tax year years ago. It took some time, but their claim for an approximate $750,000 refund was approved. Finally, in early 2023 […]
Russ
Why Did the IRS Send Me a $1.87 Refund? August 1, 2024
In mid-June I received mail from the IRS. That’s not unusual; I receive a lot of mail from the IRS (generally, correspondence for clients). But this was different: it was a check for $1.87. Here’s the check: Now, I wasn’t expecting a refund (I owed tax, which I paid with the filing). It’s definitely labeled […]
Russ
Is IRS Correspondence Broken? May 30, 2024
As a tax professional with quite a few clients, our clients receive IRS notices. Much of this correspondence (not all, but a large portion) has to be responded to. My three most recent cases are making me think there are major issues with the IRS handling mail. Client #1 received an Automated Underreporting Unit (AUR) […]
Russ
The “Joy” of 1959 Technology May 13, 2024
Clients of ours (call them John & Betty) just received their IRS refund. It was off by $1,250, exactly the amount of an estimated tax payment they made. They made that payment using IRS Direct Pay (and I saw their transaction receipt), so it wasn’t a question–as it often is–of whether or not the clients […]
Russ
An Identity Protection Unit Saga: Part 6 April 22, 2024
When last we left the saga of my client and his tax year 2020 refund, we were waiting for a call from the Taxpayer Advocate Office. Well, we received the callback and my client’s refund check was issued last Friday. Post Office willing, it should reach him in Arkansas sometime this week. As for the […]
Russ
Bozo Tax Tip #4: The $0.68 Solution April 9, 2024
With Tax Day fast approaching it’s time to examine yet another Bozo method of courting disaster. And it doesn’t, on the surface, seem to be a Bozo method. After all, this organization has the motto, Neither rain nor snow nor gloom of night can stay these messengers about their duty. Well, that’s not really the […]
Russ