The Commissioner of the IRS, noted that although the full moratorium on processing claims will end by April or May, they are only processing about 1000-2000 claims per week. That is just a small number given the growing backlog at the IRS. At that rate, the problem is growing each…
In a recent turn of events, the Internal Revenue Service (IRS) has issued an apology for sending out millions of erroneous bills or notices to taxpayers. It seems that a computer mishap is responsible for this situation, affecting taxpayers who filed a tax return in 2022 and had an outstanding…
Well, sort of and only for late filing penalties for 2019 and 2020 tax returns and for a very limited time; until September 30, 2022 to be exact. On August 24th the IRS released Notice 2022-36 “Penalty Relief for Certain Taxpayers Filing Returns for Taxable Years 2019 and 2020.” In…
The Offer in Compromise (OIC) program is a valuable tax problem resolution tool. Taxpayers eligible for an OIC suffer from financial hardship that makes paying the total amount owed and financially surviving impossible. For many, an OIC offers the only path to eliminating tax debt and becoming solvent. However, the…
In my post earlier today I quoted from IRS Notice 2021-83 issued on April 9th, which stated that the FBAR filing requirement deadline is still April 15, 2021, and that the Notice made no reference to the automatic extension. However, later that day the IRS quietly updated it to indicate…
UPDATE: You have until October 15th. The Internal Revenue Service issued a notice on April 9th reminding U.S. citizens, resident aliens and any domestic legal entity that the deadline to file their annual Report of Foreign Bank and Financial Accounts (FBAR) is still April 15, 2021. The extension of the…
PPP Loans are an excellent way for small businesses with Covid-19 related financial issues to obtain a very low (one percent) interest loan from the government. Unfortunately, if you haven’t applied yet the time period for submitting an application expired on June 30th. The good news is that the Senate…
Most, if not all, Payroll Protection Program (PPP) borrowers are focused on the question of whether they will be able to have their PPP loan forgiven. Many questions have arisen, and some but not all, have been answered by the Loan Forgiveness Application and instructions released by the SBA on Friday,…
Recently, Dennis was interviewed by Bankrate.com on his thoughts on tax implications of a cash-out mortgage refinance. Below is an excerpt of the quote: “Capital improvements must substantially improve your home,” explains Dennis Brager, a certified tax specialist with Los Angeles-based Brager Tax Law Group. “Kitchen and bathroom remodels, room…
Due to the ongoing COVID-19 Pandemic, the IRS has provided relief to taxpayers by extending filing and other deadlines. Now, in an internal memorandum from Fred Schindler the Director of Headquarters Collection (SBSE), the IRS continues to provide relief to taxpayers with tax debt by suspending most tax collection activities.…