WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

Wow - a second installment of BUZZ this week!   

* Kelly Phillips Erb, the FORBES.COM TaxGirl, provides a lot of good advice and information in “Do You Have An Uncashed Tax Check? Here’s What To Do & How To Fix Other IRS Issues”.

 

Here is one item of note especially for my 1040 clients (highlight is mine) -

 

“If you have already filed a paper return, but have not yet heard from the IRS, don't panic: the IRS will process your tax return in the order that it's received. Do not file a second tax return or contact the IRS about the status of your return.”

 

* And KPE tells us “It’s IRS Official: Amended TaxReturns Can Now Be Electronically Filed”.

 

But, KPE points out, don't get too excited –

 

“So far, you can only file electronically for amended returns for the tax year 2019 Forms 1040 and 1040-SR returns. More years and "additional improvements" are planned for the future.”

 

A reminder – this is an optional choice.  You can always file a paper amended return for any open year.

 

* And from Kay Bell, the yellow rose of taxes, at DON’T MESS WITH TAXES – “IRS knows some recently issued nonpayment notices are wrong.Now what?”.

 

Good news -

 

“ . . . the tax agency has acknowledged that the major issue is theirs, not the taxpayers they've been contacting by mail.”

 

* The General Services Administration (GSA) has posted the federal domestic per diem rates table for fiscal year 2021 (October 1, 2020 to September 30, 2021) on its website. Click here.

 

These per diem rates are amounts established by the Government Services Administration (GSA) that are used to reimburse federal employees for lodging, meals and incidental expenses (there is a separate rate for lodging and for meals and incidental expenses) while traveling on government business, but they can also be used as a basis for reimbursement by other employers.  And these amounts can be used by business taxpayers for claiming a federal tax deduction.   

 

As a reminder - employee business expenses are no longer deductible on Schedule A, so the per diem is only for use by business entities.  The meal and incidental expense per diem can be claimed as a deduction by Schedule C filers.

 

* Michael Cohn gives us some good news at ACCOUNTING TODAY – “IRS to send 13.9M taxpayers interest on their refunds” –

 

“The Internal Revenue Service and the Treasury Department plan to send interest payments averaging $18 to approximately 13.9 million individual taxpayers who filed their 2019 federal income tax returns on time and are receiving tax refunds.

 

The interest payments will go out to individual taxpayers who filed a 2019 return by this year’s July 15 deadline and who either have already received a tax refund in the past three months or will be receiving a refund. Most of the interest payments will be issued separately from tax refunds.”

 

The Service is making good on its promise to pay interest on tax refunds from April 15 till the date the check was issued.  Be aware, however, that this interest will be taxable on your 2020 Form 1040.  The IRS will be sending you a Form 1099-INT.

 

THE LAST WORD

Biden has a lifetime of service to the American people.

Trump has a lifetime of service to Trump.

TTFN