The Governor and legislative leaders agreed on a variety of provisions in the 2022-2023 budget agreement including one that would help cannabis business owners. AB 195/SB 195 would repeal the cannabis cultivate tax, revise the cannabis excise tax to be collected at...
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FTB First Time Penalty Abatement Proposed
The FTB may be getting on board with the IRS by offering a first-time penalty abatement for qualified taxpayers. The relief would begin with tax year 2022 and provide one-time relief of failure-to-file or failure-to-pay penalties. This is just one of the provisions...
Made an Error on Your Tax Return? Correct it Online
The IRS announced recently that errors on more types of tax returns can now be corrected electronically, which helps the IRS reduce the current backlog of amended returns more quickly. New forms that may be amended electronically include Forms 1040-NR, U.S....
National Taxpayer Advocate Issues Report to Congress
Erin Collins, National Taxpayer Advocate, issued her mid-year report to Congress. Ms. Collins shares her great concern over the IRS’ backlog, and the long delays taxpayers face. Part of the problem is the number of returns requiring manual processing. At the end...
U.S. Supreme Court Grants Certiorari in a Tax Case
Taxpayers with significant FBAR non-willful penalties may breathe a sigh of financial relief if the U.S. Supreme Court decides the FBAR non-willful penalty is per form, not per account. Yesterday, the U.S. Supreme Court granted certiorari in Bittner, Alexandru v. U.S....
IRS Inventory Report – 2021 Returns Completed
The IRS has been working hard to catch up on the processing of 2021 income tax returns and related correspondence that were delayed due to the pandemic and staffing shortages. More than 4.7 million original individual income tax returns were filed in 2021; by the end...
The IRS Moves Further Forward With Artificial Intelligence
The IRS has answered more than 3 million calls through its new electronic voice bot since January 2022, and anticipates many more, as it expands the services provided to eligible taxpayers. Now an individual can verify their identity to set up or even modify a...
IRS Names New Deputy Chief of Criminal Investigations
Guy Ficco is the new Deputy Chief at the IRS who will oversee approximately 2,000 special agents seeking to thwart tax fraud and financial crimes. Ficco is well-versed in tax crimes having served as the IRS Criminal Investigation Division’s Executive Director of...
The IRS’ Position on Abusive Micro-captive Insurance Transactions is Upheld
While micro-captive insurance policies may be about as clear as mud to many people, what is crystal clear is that a U.S. Court of Appeals affirmed the IRS’ position that abusive micro-captive insurance transactions are sham transactions resulting in a disallowance of...
Look Out for Tax Scams
Now that filing season is done, many tax professionals are taking a well-deserved break – but the IRS warns that tax scammers work all year long. Spear phishing was featured on this year’s “Dirty Dozen” list of common scams for tax professionals to be aware of. Spear...
