Tuesday, November 9, 2021



* Russ Fox discusses an all too familiar problem, especially lately due to IRS backlog, in “Evergreen Post: IRS Sending Erroneous Balance Due Notices” at TAXABLE TALK.

One of my clients received her 2020 refund check recently with an amount withheld for an erroneous 2019 balance due, which I had written to “Sam” about months ago.  A subsequent notice verified and identified the source of the refund shortage.  A few days later she received a certified letter from the IRS with a demand for the balance due that was withheld from the 2020 refund.

The excessive closure of the IRS in 2020 has totally FU-ed things up!  I wonder if the Service will ever fully recover.  Going forward the IRS truly needs to develop a plan to be able to continue to function adequately during a health emergency if, God forbid, something like COVID ever happens again.

Russ ends his post with some very important advice (highlights are mine) -

This does bring up some standard rules about IRS notices:

1. Do not assume the notice is correct.  Per IRS statistics, two-thirds of IRS notices are wrong in whole or in part.

2. If you use a tax professional, let him or her know immediately about the notice.  IRS notices do not get better with age.”  

* A reminder that it is time for year-end tax planning.  Sandra Block listed “10 Year-End Moves to Lower Your 2021 Tax Bill” at KIPLINGER.COM back in mid-October..

* Danielle Harrison explains “One of the Most Underutilized Savings Tools: The HSA” at THE STREET.

Health Savings Accounts are a great vehicle for retirement savings. Financial Planner Danielle Harrison explains what you need to know about HSAs.”

* From Alessandra Malito at MARKETWATCH - “You inherit an IRA — what to do and how not to mess up”.

* Kay Bell reports “Hurricane Ida victims in Connecticut have new Jan. 3, 2022, tax deadline” at DON’T MESS WITH TAXES.   


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