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IRS & Tax Information

Responding to a CP2000 Underreported Income Notice from the IRS

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January 15th, 2021

Posted in IRS & Tax Information

When your tax return does not match data reported to the IRS from third parties, a letter called an IRS Notice CP2000 may be sent to you. It is not a formal audit notification, but it can quickly turn into a deficiency notice if not addressed. CP2000 Notices contain:

  • The amounts you reported on your original or processed amended return;
  • The amounts reported to the IRS by the payer or 3rd parties;
  • The payer’s name, ID number, the type of document issued (W-2, 1098, 1099), and the tax identification number of the person to whom the document was issued;
  • The proposed changes to your income, tax, credits, or payments; and
  • A Response form, payment voucher, and an envelope.

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2020 Special Tax Deductions for Cash Donations to Charities

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December 18th, 2020

Posted in IRS & Tax Information

The CARES Act, enacted by Congress previously this year, includes a special $300 charitable tax deduction, even if you do not itemize your deductions on your taxes. The purpose of this deduction is to help charities that may be struggling due to the COVID-19 pandemic. This new and temporary deduction is only available to taxpayers who make a cash contribution directly to a charity and before the end of the 2020 year.


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Closing a Business Checklist from a Tax Perspective

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October 16th, 2020

Posted in Business Law,IRS & Tax Information

Closing a business can be a difficult and challenging task. First, before you close your business, find out if tax relief, your local county, or the CARES Act legislation can help you stay open. Also, be sure to consult with your professional team such as an attorney or accountant.

There are typical actions that are taken when closing a business. This blog post focuses on tax responsibilities with the IRS and FL Department of Revenue. It does not address non-tax obligations such as those associated with the vendors, contracts, or the FL Division of Corporations.


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Employee Payroll Tax Deferral

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September 18th, 2020

Posted in IRS & Tax Information

On August 8, 2020, the President issued a Memorandum entitled Deferring Payroll Tax Obligation in light of the Ongoing COVID-19 Disaster. The Memorandum authorizes the Secretary of the Treasury to defer certain payroll tax obligations. The purpose of the Memorandum is to produce a targeted action that “will put money directly in the pockets of American workers and generate additional incentives for work and employment.”


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What To Do If You Owe the IRS and Can’t Pay

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July 23rd, 2020

Posted in IRS & Tax Information

Now that this year’s Tax day has passed, you may have discovered that you owe more on your tax return then you can afford to pay. Here are some tax resolutions and tips to get your IRS debt resolved before it’s too late:   

1. Installment Agreements

Individuals who owe $50,000 or less in income tax and businesses that owe $25,000 or less in payroll tax may qualify for an Online Payment Agreement. You can set up the payment for any amount you can afford as long as the debt is paid in full within 72 months (6 years). You can also modify installment agreements through the program as well. 


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Your Permanent Residence for the Homestead Tax Exemption

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June 12th, 2020

Posted in IRS & Tax Information,Real Estate Law

As most Florida homeowners know, the Florida Constitution provides for a valuable homestead tax exemption. In general, to qualify for this exemption under Section 196.031 of the Florida Statues, you must have legal or beneficial title to your home and in good faith make the home your “permanent residence” as of January 1st.  Determining whether you make the home your “permanent residence” can be complicated for those who have multiple homes or sometimes rent the home on occasion.


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Important Deadlines for Taxpayers in 2020

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March 13th, 2020

Posted in IRS & Tax Information

Calendaring important IRS and tax authority deadlines can save you a lot of headaches at tax time.  To avoid paying penalties and other tax consequences, keep a calendar and plan for tax deadlines with your accountant, attorney, and other members of your professional team.  The below items are a few examples of important tax deadlines:


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New Legislation Affects Tax Reporting on Florida Corporations

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February 18th, 2020

Posted in IRS & Tax Information

Last summer, Florida passed new legislation requiring all Florida corporate income tax filers to provide certain additional information online with the Florida Department of Revenue (FDOR). The new online information disclosure relates to how certain areas of the federal Tax Cuts and Jobs Act impact a company’s Florida income tax. Note that the state has limited this additional online reporting to only those companies required to file a Florida corporate income/franchise tax returns (Form F-1120 or F-1120-A). Other entity types such as partnerships are not affected by this legislation.


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