Tax Smart Advisors Inc.,

#1 Reason late-filed returns get rejected? Disputes over IRS Dependency Exemptions.

Should your company take advantage of Trumps' Exeuctive Order to allow employees to defer payroll taxes to next year? Our short answer is NO. But, before you say no consider #1 likelihood/alternatives if Treasury pulls through and provides forgiveness in 2021? and #2 Consulting with your business attorney (don't have one we may be able to refer you to one suited for your business) on proper messaging. Covid-19 HR/Legal compliance is a real risk for business owners. For more information contact [email protected]. https://www.whitehouse.gov//memorandum-deferring-payroll/

In mid-August interest payments were sent to nearly 14 million individual taxpayers. People who got these payments filed their 2019 federal income tax returns by the July 15 deadline and were owed refunds. These interest payments averaged about $18. The IRS issued most of the payments separately from tax refunds. Most taxpayers who received their refund by direct deposit had their interest payment sent to the same account. Everyone else received a check. A note on the check ...reads "INT Amount." This identifies it as a refund interest payment. These interest payments are taxable. Taxpayers who received a payment must report it on their 2020 federal income tax return next year. The IRS will send a Form 1099-INT in January 2021, to anyone who gets a payment of at least $10. This interest payment is due to the IRS postponing this year's filing deadline to July 15. The new deadline was related to COVID-19 and is considered a disaster-related postponement. Therefore, the law requires the IRS to pay interest calculated from the original April filing deadline. The taxpayer must have filed their 2019 federal income taxes by the July 15, 2020, deadline to get an interest payment. This refund interest only applies to individual taxpayers. Businesses aren't eligible.

Michelle Bachmann needs some serious tax assistance after receiving what appears to be a GIFT and not a TIP. If this $1,300 gift is misclassified as a TIP she's paying income and employment taxes on it. That's not right -- clearly, this was a gift. What do you think? #OrchestratingGood #IRS #Taxes #ChristineFlores Orchestrating Good https://lnkd.in/gcPxsjc # #

Vote for SUP Movie of the Year (https://www.supthemag.com/sup-awards/vote/movie-of-the-year/) -- Will Schmidt's incredible story to support Marines, PTSD, Anxiety, and Depression -- watch on Vimeo for free with promo code "SUPAwards"! #