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Understanding AGI and How to Calculate it October 21, 2020

Posted by bradstreetblogger in : Business consulting, Deductions, General, tax changes, Tax Planning Tips, Tax Rules, Tax Tip, Taxes , add a comment

What’s adjusted gross income? Here’s what to know about this important income tax calculation.

WHEN IT COMES TO filing income taxes, it’s essential to understand your adjusted gross income, or AGI, and its relationship to certain tax benefits.
“The reason it matters is because a lot of deductions, tax credits, whether or not you can contribute to certain retirement accounts depends on your AGI,” says Michele Cagan, certified public accountant and author of “Debt 101.” “A lot hangs on it.”

In fact, recently, Americans’ eligibility for COVID-19 stimulus checks was tied to adjusted gross income reported in 2018 or 2019. The final amount taxpayers receive will depend on their 2020 AGI.

Ready to understand this essential tax concept? Here’s what to know about AGI, how it’s calculated and strategies to reduce your adjusted gross income.

What Is Adjusted Gross Income, or AGI?

AGI is a calculation of income for tax purposes that measures taxable earnings while subtracting certain tax deductions. For 2020 income taxes, it’s marked on line 11 of your Form 1040, according to IRS draft forms.

“Basically it’s all of your income minus certain adjustments that are found on Schedule 1,” says Eva Rosenberg, a Los Angeles-based enrolled agent and founder of TaxMama.com.

Why Is AGI Important?

Your adjusted gross income is an important tax calculation because eligibility for many tax deductions, tax credits and other tax breaks are tied to it, Cagan says. “It can lock you out of tax benefits if your AGI is too high,” she says.

For example, your AGI impacts limitations on these itemized deductions:

It will also determine your eligibility for and amount received in certain tax credits, including the earned income credit and retirement savings contribution credit.

Recently, the stimulus checks designed to combat the coronavirus’ economic repercussions was tied to AGI. The full $1,200 per taxpayer is available to single filers earning less than $75,000 in adjusted gross income and married filers earning less than $150,000 in 2020. Reduced amounts are available to taxpayers earning an adjusted gross income of less than $99,000 if single or $198,000 if married filing jointly.

How Do I Calculate AGI?

AGI is calculated this way:

All income
– exclusions from income
= gross income
– deductions for AGI
= adjusted gross income

On a practical note, most tax software programs will take you through the steps to calculate adjusted gross income within their interfaces. A tax professional can also help you calculate this number.

Here are the elements of the calculation in more detail.

All income. To determine this, collect income statements from all sources, including businesses, unemployment compensation, insurance, wages, investments, gifts and other sources.

Exclusions from income. Certain types of income are excluded from gross income for the purposes of calculating adjusted gross income. Depending on the circumstances, those could include these sources of income:

If you’re not sure whether an income source is excluded, consult with a tax professional.

Deductions for AGI. To calculate adjusted gross income, you’ll be able to subtract certain above-the-line deductions from gross income. Those deductions include:

Additionally, taxpayers who don’t itemize may deduct $300 in cash donations to charity. This is due to the coronavirus stimulus bill and new for 2020 taxes.

Keep in mind that some of these deductions are capped at a certain level. Subtracting them will yield your AGI. It’s simple math, although identifying the appropriate income sources and deductions may be less simple.

How Do I Reduce AGI?

A key tax-planning strategy is to reduce adjusted gross income to make the taxpayer eligible for more generous tax benefits. Most of those strategies are best enacted before Dec. 31, Rosenberg says. “If you’re looking at AGI, and it’s starting to make you ineligible for some things, it’s important to do the planning before the end of the year,” she says.

For example, you may want to generate investment losses by selling off stocks or securities at a loss to reduce your AGI, she says. Or you could consider making a contribution to your IRA or self-employed retirement plan. Contribute to your health savings account if you’re eligible or consider taking the deduction for tuition and fees interest.

“Every little bit makes a difference when you’re trying to reduce AGI,” Cagan says.

What’s the Difference Between AGI and Modified Adjusted Gross Income, or MAGI?

Don’t confuse AGI with modified AGI. To calculate your eligibility for certain tax benefits, such as the deduction associated with contributions to an IRA, modified adjusted gross income may be used.

Rosenberg says that different credits and deductions require different calculations for modified AGI. “Sometimes modified adjusted gross income might not include certain deductions,” she says. “Sometimes it may include nontaxable income, so there are different elements.”

Take note of whether a tax benefit you’re eyeing is tied to AGI or MAGI. If it’s tied to MAGI, you may have to do some extra math to determine your eligibility. It is entirely possible, however, that depending your financial situation, your AGI and MAGI will be the same since some of these deductions and forms of income are uncommon.

Credit given to US News & World Report published on Sept 17, 2020 by Susannah Snider

Thank you for all of your questions, comments and suggestions for future topics. As always, they are much appreciated. We also welcome and appreciate anyone who wishes to write a Tax Tip of the Week for our consideration. We may be reached in our Dayton office at 937-436-3133 or in our Xenia office at 937-372-3504. Or, visit our website.

–until next week.

5 New Rules for Charitable Giving October 14, 2020

Posted by bradstreetblogger in : Charitable Giving, Deductions, Depreciation options, General, tax changes, Tax Planning Tips, Tax Rules, Tax Tip, Taxes, Taxes , add a comment

New tax laws and strategies can help you maximize tax breaks for yourself and benefits for the charity.

THERE ARE SO MANY reasons to make charitable gifts this year – whether it’s to support nonprofits that help people and communities with challenges from the coronavirus pandemic, or to provide assistance after disasters such as the Beirut explosion or an active hurricane season.

Even though a lot of people are struggling financially right now, many people whose finances have stabilized want to do whatever they can to help out. And they’re not waiting until the end of the year to make their gifts. “A lot of things are driving people to be generous, and our numbers prove it,” says Kim Laughton, president of Schwab Charitable, which runs Schwab’s donor-advised funds. From January through June 2020, its donors recommended over $1.7 billion in 330,000 grants, almost a 50% increase in the dollars granted and the number of grants compared to the same period in 2019. “There’s great need out there, and people are stepping up.”

“Philanthropy and giving is on everyone’s mind,” says Dien Yuen, who holds the Blunt-Nickel Professorship in Philanthropy at the American College of Financial Services. Some nonprofits need help now just to stay afloat. “The donors who are quite active are making gifts now and not waiting until later in the year, because the nonprofit might not be there later on.”

New tax laws and strategies can help you maximize tax breaks for yourself and the benefits for the charity. Here’s what you need to know:

New $300 Charitable Deduction for Non-Itemizers

The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, created several incentives for people to help charities right away, including a charitable deduction of up to $300 in 2020, even if you don’t itemize. Otherwise, you generally need to itemize to take the charitable deduction, which fewer people do since the standard deduction doubled a few years ago – now at $12,400 for single filers and $24,800 for married couples filing jointly in 2020.

“As a result of the Tax Cuts and Jobs Act of 2017, most taxpayers utilize the significantly higher standard deduction instead of itemizing deductions for mortgage interest, state taxes paid and charitable contributions,” says Mark Alaimo, a certified public accountant and certified financial planner in Lawrence, Massachusetts. “This special CARES Act provision now gives a tax incentive to all taxpayers to give at least $300 to charity during 2020.” To qualify, the gift must be made in cash and go directly to the charity, rather than to a donor-advised fund or private foundation.

“I think that the additional $300 provision in the CARES Act is really great, especially for the younger generation who may be just starting to work and may not be paying substantial mortgage interest,” says Kelsey Clair, tax strategist for Baird’s Private Wealth Management Group. “It allows them to give even in a small way and reap the tax benefit for it.”

The CARES Act also helps people who are in a financial position to make very large gifts. In 2020, you can deduct cash gifts of up to 100% of your adjusted gross income, rather than the usual 60% limit. To qualify for this higher limit, the gifts must go directly to the charities, rather than to a donor-advised fund or private foundation. This can help wealthy people reduce their taxable income significantly in 2020, and it may also help retirees who have money to give but bump up against the income limits for the deduction. “I see it in the older generation who have a lot of cash but don’t have a lot of income coming in and are trying to help out the community in any way they can,” says Clair.

Bunching Contributions and Donor-Advised Funds

Bunching contributions is a strategy that became popular after the standard deduction was increased. Instead of making smaller charitable contributions spread over several years, you can make larger contributions in one year so you can itemize your deductions (and claim the charitable deduction) that year, then take the standard deduction in the other years. “Rather than making a steady stream of charitable contributions from year to year, it may be beneficial instead to use a bunching strategy – give more and itemize in one year, and claim the standard deduction in other years,” says Clair.

Even though this can help you tax-wise, you might not want to give all of the money to the charities at one time and then neglect them over the next few years. But bunching can work well if you have a donor-advised fund. These funds are offered by brokerage firms, banks and community foundations, and you can take the charitable deduction in the year you give the money to the donor-advised fund, but then you have an unlimited amount of time to decide which charities to support. You can usually open a donor-advised fund with an initial contribution of $5,000 to $10,000 (it’s $5,000 at Schwab and Fidelity, $10,000 at T. Rowe Price, and $25,000 at Vanguard). You can make grants to charities of $50 or $100 up to thousands of dollars or more, and you can invest the money in a handful of mutual funds or investing pools until you make the grants. “It can be a great way to go ahead and make the contribution, without having to decide where that money goes right away,” says Clair.

Another benefit of the donor-advised fund is simplicity – you get one receipt for your tax records when you make the contribution and don’t have to wait for a variety of paperwork from each of the charities. “Donor-advised funds really help with the administrative side of things,” says Elliot Dole, a certified financial planner with Buckingham Strategic Wealth in St. Louis. “Itemizing charitable gifts is a hot button audit area. But with a donor-advised fund, it’s clear that you met the requirements.”

A Double Tax Break From Giving Appreciated Stock

Many people just write a check to the charity, but you may get a bigger tax benefit if you give appreciated stock. If you owned the stock for more than a year, you can deduct the value of the stock on the date you give it to the charity if you itemize. And even if you don’t itemize, you can avoid having to pay long-term capital gains taxes on your profits, which could have cost up to 20% if you sold the stock first. (Giving appreciated stock doesn’t qualify for the special $300 charitable deduction for non-itemizers for 2020; that only applies to cash.)

Most charities can accept appreciated stock, but the process can be easier if you have a donor-advised fund. “Given how volatile the stock market can be, many advisors recommend utilizing donor-advised funds due to the ease and speed that one can make a contribution,” says Alaimo. “This makes it easier to opportunistically gift highly appreciated securities, while regulating which charity receives how much of the donation, and when they receive it.”

It’s even easier if your brokerage account and donor-advised fund are with the same company. “When you log into your Schwab accounts, it shows your investment accounts, your bank accounts and your charitable account,” says Laughton. You can sort your investments by most highly appreciated or highly concentrated and see if you’re overweighted in one area. “We encourage people to rebalance their portfolios regularly, and when they see they’re overconcentrated, instead of selling those shares, they can just move them over to their charitable account,” says Laughton.

With so much stock market volatility this year, you may want to donate the stock when it reaches a target price, rather than giving at a certain time of year.

The donor-advised fund can also accept a variety of contributions – whether you write a check or you give appreciated stock, privately held stock, real estate, limited partnerships or even a horse farm. “It always makes sense for people who have highly appreciated non-cash assets to at least explore whether they could make good charitable gifts,” says Laughton. “Donor-advised funds can make that simple and easy.”

If you have investments that have lost value, however, it’s better to sell them first – and take a Charitable loss – and then give the cash to charity. “I’ve seen multiple times where people made mistakes of donating stocks that were in a loss,” says Clair. “It’s better to sell that and claim the loss on your return and donate the cash.” When you sell the losing stock, you can use the loss to offset your capital gains and can use up to $3,000 in losses to reduce your ordinary income, which you couldn’t do if you gave the stock directly to the charity.

Make a Tax-Free Transfer From Your IRA

People who are age 70½ and older can give up to $100,000 per year tax-free from their IRA to charity, a procedure called a qualified charitable distribution or QCD. The gift counts as their required minimum distribution but isn’t included in their adjusted gross income. (Even though the SECURE Act, another recent tax law, increased the age to start taking RMDs from 70½ to 72, you can still make a qualified charitable distribution any time after you turn age 70½.)

This is usually a great strategy for people who have to take RMDs and would like to give money to charity – they can help the charity and not have to pay taxes on the money they have to withdraw from their IRA. But because of the CARES Act, people are not required to take RMDs in 2020. However, you may still be able to benefit from making a QCD this year. “Some people who have been doing the QCD have been supporting a couple of charities every year, and they’re not going to stop, especially during this time of need,” says Yuen. The tax-free transfer takes money out of your IRA, which can help reduce future RMDs. “It’s great planning,” she says.

To keep the money out of your AGI, it must be transferred directly from your IRA to the charity – you can’t withdraw it first. Ask your IRA administrator about the procedure, and let the charity know the money is coming. You have to give this money directly to a charity; it can’t go to a donor-advised fund.

Make an Extra Effort to Research Charities This Year

Scam artists have been out in full force to take advantage of the coronavirus pandemic. It’s even more important now to check out charities before you give money, especially if they contact you first. You can look up charities at sites such as Charity Navigator and the Better Business Bureau’s Wise Giving Alliance. Local community foundations are also a great resource for aid focused on your community – see the Community Foundation Locator for links. If you have a donor-advised fund, you may have access to additional research tools, such as GuideStar.

Schwab Charitable can help its donors vet the charities and also provides lists of selected charities that focus on timely issues, such as COVID-19 relief and social justice. “We’re trying to develop short lists to help people narrow the charities down to ones we know are valid and doing good work,” says Laughton.

Credit given to US News & World Report published Aug 21, 2020 by Kimberly Lankford.

Thank you for all of your questions, comments and suggestions for future topics. As always, they are much appreciated. We also welcome and appreciate anyone who wishes to write a Tax Tip of the Week for our consideration. We may be reached in our Dayton office at 937-436-3133 or in our Xenia office at 937-372-3504. Or, visit our website.

–until next week.

What Will Filing Taxes Be Like in 2021 – And How Can You Prepare? September 30, 2020

Posted by bradstreetblogger in : Business consulting, COVID, COVID-19, General, tax changes, Tax Planning Tips, Tax Preparation, Tax Rules, Tax Tip, Taxes , add a comment

Some of the tax return changes listed below provide us with likely insights into the IRS’s future audit and cross matching software programs.  The IRS is always trying to close the so-called “tax gap.”  The tax gap is the amount of income taxes due which are not paid in a timely or voluntary fashion.  One of the studies in recent years indicated that about 16 percent of taxes are never paid.  At the time of this study, that amount represented about 18 percent of annual federal revenues (this study was pre-COVID era).

Let me share my thoughts on the dangers of two of the new changes below as recapped by Morris Armstrong.  The first change is the possibility of deferring the deposit and payment of the employer’s portion of the Social Security taxes.  The second one involves receiving retirement plan distributions and deferring their repayments.  Both are akin to kicking the can down the road which typically sounds like a good idea.  But, keep in mind, there is a day of reckoning.  Failure to later pay either the employer’s portion of the Social Security taxes or your retirement plan distributions will result in interest and penalties and maybe even additional income taxes.  Don’t get me wrong, sometimes kicking the can down the road is the only option one may have.  And, if that is the case, then I would take full advantage of the tax law.

-Mark Bradstreet


“THERE HAVE BEEN CHANGES to the tax code this year, and they will be reflected on the Form 1040 of your tax return.

Each year, if necessary, the IRS releases drafts of the forms so professionals may comment, and line numbers are subject to change. However, the advance notice is always appreciated and can give insights into what next year’s taxes will look like.

Here’s how tax-filing will look different in 2021 – when 2020 income taxes are filed – and what you can do to prepare.

A New Focus on Cryptocurrency
This year, the Department of Treasury is focusing on virtual currencies. The first question asks this: At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?

Over the past several years, the government has focused on cryptocurrencies, issued guidance on its tax treatment and advised certain taxpayers that they may have failed to report transactions properly. Likely, the government must feel that it has in place the infrastructure to trace your transactions.

As you answer this question, remember that you are signing the tax return under penalties of perjury, a conviction of which can carry a five-year prison sentence.

Adjustment to Income Via Charity
A bonus to taxpayers in 2020 is that they may be eligible to reduce their income by up to $300 for charitable contributions, thanks to the coronavirus relief bill.

These contributions must be in the form of cash, check or credit card payments, and you must have the proper documentation. You may not deduct donations of items such as the four bags of clothing that you dropped off at Goodwill this spring.

This “adjustment to income” is nice because it reduces your adjusted gross income, also called AGI, which impacts many other aspects of your financial life. Your Medicare Part B and Medicare Part D premiums and programs at the state level are tethered to AGI. So, having a lower adjusted gross income can reduce those premiums or make you eligible for additional state programs.

Prepare by keeping your receipts and other substantiating documents. Remember, contributions of $250 or more to a charity require a letter of acknowledgment.

Look Out for Changes in Reporting Taxes Paid
In the past, when you reported the amount of federal tax withheld, you reported one number. This would be the paid federal income tax shown on your W-2 and on any 1099 form.

This year, the numbers are being reported on separate lines, and that could mean that someone at the IRS will be focusing on 1099s in the future.

Tax Credit Reconciling the Economic Impact Payments
Line 30 seems to be reserved for something that the government is calling a recovery rebate credit, which refers to the stimulus payments you received. This is where you may receive an additional credit if your 2020 tax return has a smaller AGI than the one that was used to calculate the initial stimulus check or if you have additional dependents.

Prepare by keeping the letter from the IRS telling you how much you received. It is Notice 1444 that you want to have available when you are filing your tax returns.

Payroll Tax Deferment Impacts the Amount You Owe
If you had household employees or are self-employed, which you report on Schedule H and Schedule SE, you may have to pay extra attention to this calculation.

Normally, the calculation is a simple addition of the taxes owed minus any payments and credits, but this year, we have a wrinkle. The coronavirus relief bill allows employers to defer the deposit and payment of the employer’s portion of the Social Security taxes.

The span of March 27 through Dec. 31, 2020 is important because any payroll taxes that were due then may be deferred, with 50% paid by Dec. 31, 2021, and the balance by Dec. 31, 2022. If you are a Schedule C filer, this will apply to you.

Flexibility Around Retirement Plan Distributions for Taxpayers Impacted by COVID-19
The coronavirus relief bill allows for distributions from a retirement account, including an IRA, to be handled differently if the taxpayer was impacted by COVID-19. This does not require contracting the disease but includes having your economic life disrupted by it.

You could be quarantined, furloughed, laid-off or had work hours reduced, been unable to work because you could not find child care– if it is virus related – and qualify for this retirement plan provision.

When the taxpayer self-certifies to these facts, the tax impact is substantial. There will be no 10% penalty if you take a distribution while under the age of 59½, the distribution will be spread over three years, and the taxpayer may repay the amount taken out over three years and avoid taxation.

Prepare by keeping documentation. Since you are self-certifying that you are impacted, you may want to keep any medical records, notices from your employers or notes describing your circumstances.

For most people, these are the main changes that will impact their personal 1040 Form. But keep in mind that Congress is still in session, it is an election year and more changes are possible.”

Credit given to US News & World Report published Sept 1, 2020 by Morris Armstrong.

Thank you for all of your questions, comments and suggestions for future topics. As always, they are much appreciated. We also welcome and appreciate anyone who wishes to write a Tax Tip of the Week for our consideration. We may be reached in our Dayton office at 937-436-3133 or in our Xenia office at 937-372-3504. Or, visit our website.

This week’s author – Mark Bradstreet, CPA

–until next week.

BWC Board Approves 10% Rate Cut for Public Employers September 23, 2020

Posted by bradstreetblogger in : Business consulting, General, Tax Planning Tips, Tax Tip, Taxes, Uncategorized , add a comment

Ohio’s public employers will pay $14.8 million less in premiums to the Ohio Bureau of Workers’ Compensation (BWC) in 2021 thanks to a rate cut the BWC Board of Directors approved Friday.

The rate reduction means approximately 3,700 counties, cities, public schools and other public taxing districts will pay an average of 10% less on their annual premiums than this calendar year. The reduction, made possible by declining injury trends and relatively low medical inflation costs, is the twelfth cut for public employers since 2009 and follows a 10% cut that went into effect in January.

“We are pleased to pass these savings along to our public employer community, especially as the COVID-19 pandemic continues to challenge our economy,” said BWC Administrator/CEO Stephanie McCloud. “It is our hope they invest these dollars in workplace safety and improving their communities.”

The 10% reduction represents an average statewide change to premiums and does not include costs related to the administrative cost fund or other funds BWC administers. The actual total premium paid by individual employers depends on several factors, including the expected future claims costs in their industry, their company’s recent claims history, and their participation in various BWC programs.

A history of BWC rate changes since 2000 can be found online by clicking this link.

Credit given to BWC Website, News Release August 24, 2020

Thank you for all of your questions, comments and suggestions for future topics. As always, they are much appreciated. We also welcome and appreciate anyone who wishes to write a Tax Tip of the Week for our consideration. We may be reached in our Dayton office at 937-436-3133 or in our Xenia office at 937-372-3504. Or, visit our website.

–until next week.

Good Record-keeping is an Essential Element of Tax Planning September 16, 2020

Posted by bradstreetblogger in : Business consulting, General, tax changes, Tax Planning Tips, Tax Preparation, Tax Rules, Tax Tip, Taxes , add a comment

I can go on ad nauseum about the importance of good record-keeping. Of course, being an accountant, I may be more than a little biased. I won’t say that good record-keeping is THE most important piece of the business world BUT it is certainly near the top. You simply must have a way to keep score. Without knowing the score, you may be using the wrong playbook. Most businesses have poor records which results in inaccurate financial statements. Making decisions from incorrect data just sets the stage for a disaster. Eventually, most of your day will be wasted answering calls from past due or incorrect payments on your invoices, screwed up orders, improper or missed billings, unable to obtain credit, poor credit history and losing money all the while not knowing you are underwater until it is too late.
                                                -Mark

Now is a good time for people to begin thinking about next year’s tax return. While it may seem early to be preparing for 2021, reviewing your record-keeping now will pay off when it comes time to file again.

Here are some suggestions to help taxpayers keep good records:

Credit given to – IRS.gov – click here for original article

This week’s Author – Mark Bradstreet, CPA

Thank you for all of your questions, comments and suggestions for future topics. As always, they are much appreciated. We also welcome and appreciate anyone who wishes to write a Tax Tip of the Week for our consideration. We may be reached in our Dayton office at 937-436-3133 or in our Xenia office at 937-372-3504. Or, visit our website.

–until next week.

Where’s My Refund? July 29, 2020

Posted by bradstreetblogger in : 2019 Taxes, tax changes, Tax Rules, Tax Tip, Taxes, Taxes, Uncategorized , add a comment

                     

Due to the COVID-19 pandemic, IRS live phone assistance is extremely limited. People are encouraged to first check the Where’s My Refund? tool on the IRS website and the IRS2Go app. Taxpayers can also review the IRS Services Guide (PDF) which links to additional IRS online services.

The IRS issues 9 out of 10 refunds in less than 21 days, and the fastest way to get a refund is to use IRS e-file and direct deposit. Taxpayers should also know they can have their refunds divided into up to three separate accounts.

Please note: Ordering a tax transcript will not speed delivery of tax refunds nor does the posting of a tax transcript to a taxpayer’s account determine the timing of a refund delivery. Calls to request transcripts for this purpose are unnecessary. Transcripts are available online and by mail at Get Transcript.

A few necessary items

To use the “Where’s My Refund” tool, taxpayers will need to enter their Social Security number, tax filing status (single, married, head of household) and exact amount of the tax refund claimed on the return.

Taxpayers who file electronically can check “Where’s My Refund” within 24 hours after they receive their e-file acceptance notification. The tool can tell taxpayers when their tax return has been received, when the refund is approved and the date the refund is to be issued.

Some refunds may take longer

While the IRS continues to process electronic and paper tax returns, issue refunds, and accept payments, there are delays in processing paper tax returns due to limited staffing. If a taxpayer filed a paper tax return, the return will be processed in the order in which it was received. Do not file a second tax return or call the IRS.

Many different factors can affect the timing of a refund. In some cases, a tax return may require additional review. It is also important to consider the time it takes for a financial institution to post the refund to an account or for a refund check to be delivered by mail.

Taxpayers who owe

The IRS encourages taxpayers who owe to do a Paycheck Checkup every year to ensure enough tax is withheld from their pay to avoid an unexpected tax bill.

This week’s article – From IRS.gov – Click Here

– Tammy

Thank you for all of your questions, comments and suggestions for future topics. As always, they are much appreciated. We also welcome and appreciate anyone who wishes to write a Tax Tip of the Week for our consideration. We may be reached in our Dayton office at 937-436-3133 or in our Xenia office at 937-372-3504. Or, visit our website.  

– until next week.

“Dirty Dozen” List of Tax Scams for 2020 July 22, 2020

Posted by bradstreetblogger in : COVID, COVID-19, General, Tax Rules, Tax Tip, Taxes, Uncategorized , add a comment

On July 16, 2020, the Internal Revenue Service announced its annual “Dirty Dozen” list of tax scams with a special emphasis on aggressive and evolving schemes related to coronavirus tax relief, including Economic Impact Payments.

On July 16, 2020, the Internal Revenue Service announced its annual “Dirty Dozen” list of tax scams with a special emphasis on aggressive and evolving schemes related to coronavirus tax relief, including Economic Impact Payments.

This year, the Dirty Dozen focuses on scams that target taxpayers. The criminals behind these bogus schemes view everyone as potentially easy prey. The IRS urges everyone to be on guard all the time and look out for others in their lives.

“According to a cpa tax scams tend to rise during tax season or during times of crisis, and scam artists are using the pandemic to try stealing money and information from honest taxpayers,” said IRS Commissioner Chuck Rettig. “The IRS provides the Dirty Dozen list to help raise awareness about common scams that fraudsters use to target people. We urge people to watch out for these scams. The IRS is doing its part to protect Americans. We will relentlessly pursue criminals trying to steal your money or sensitive personal financial information.”

Taxpayers are encouraged to review the list in the “special section” on IRS.gov and be on the lookout for these scams throughout the year. Taxpayers should also remember that they are legally responsible for what is on their tax return even if it is prepared by someone else. Consumers can help protect themselves by choosing a reputable tax preparer.

The IRS urges taxpayers to refrain from engaging potential scammers online or on the phone. The IRS plans to unveil a similar list of enforcement and compliance priorities this year as well.

An upcoming series of press releases will emphasize the illegal schemes and techniques businesses and individuals use to avoid paying their lawful tax liability. Topics will include such scams as abusive micro captives and fraudulent conservation easements.

Here are this year’s “Dirty Dozen” scams:

Phishing:

Taxpayers should be alert to potential fake emails or websites looking to steal personal information. The IRS will never initiate contact with taxpayers via email about a tax bill, refund or Economic Impact Payments. Don’t click on links claiming to be from the IRS. Be wary of emails and websites − they may be nothing more than scams to steal personal information.

IRS Criminal Investigation has seen a tremendous increase in phishing schemes utilizing emails, letters, texts and links. These phishing schemes are using keywords such as “coronavirus,” “COVID-19” and “Stimulus” in various ways.

These schemes are blasted to large numbers of people in an effort to get personal identifying information or financial account information, including account numbers and passwords. Most of these new schemes are actively playing on the fear and unknown of the virus and the stimulus payments. 

Fake Charities:

Criminals frequently exploit natural disasters and other situations such as the current COVID-19 pandemic by setting up fake charities to steal from well-intentioned people trying to help in times of need. Fake charity scams generally rise during times like these.

Fraudulent schemes normally start with unsolicited contact by telephone, text, social media, e-mail or in-person using a variety of tactics. Bogus websites use names similar to legitimate charities to trick people to send money or provide personal financial information. They may even claim to be working for or on behalf of the IRS to help victims file casualty loss claims and get tax refunds.

According to a great accountant, taxpayers should be particularly wary of charities with names like nationally known organizations. Legitimate charities will provide their Employer Identification Number (EIN), if requested, which can be used to verify their legitimacy. Taxpayers can find legitimate and qualified charities with the search tool on IRS.gov.

Threatening Impersonator Phone Calls:

IRS impersonation scams come in many forms. A common form is bogus, threatening phone calls from a criminal claiming to be with the IRS. The scammer attempts to instill fear and urgency in the potential victim. In fact, the IRS will never threaten a taxpayer or surprise him or her with a demand for immediate payment.

Phone scams or “vishing” (voice phishing) pose a major threat. Scam phone calls, including those threatening arrest, deportation or license revocation if the victim doesn’t pay a bogus tax bill, are reported year-round. These calls often take the form of a “robocall” (a text-to-speech recorded message with instructions for returning the call).

The IRS will never demand immediate payment, threaten, ask for financial information over the phone, or call about an unexpected refund or Economic Impact Payment. Taxpayers should contact the real IRS if they worry about having a tax problem.

Social Media Scams:

Taxpayers need to protect themselves against social media scams, which frequently use events like COVID-19 to try tricking people. Social media enables anyone to share information with anyone else on the internet. Scammers use that information as ammunition for a wide variety of scams. These include emails where scammers impersonate someone’s family, friends or co-workers.

Social media scams have also led to tax-related identity theft. The basic element of social media scams is convincing a potential victim that he or she is dealing with a person close to them that they trust via email, text or social media messaging.

Using personal information, a scammer may email a potential victim and include a link to something of interest to the recipient which contains malware intended to commit more crimes. Scammers also infiltrate their victim’s emails and cell phones to go after their friends and family with fake emails that appear to be real and text messages soliciting, for example, small donations to fake charities that are appealing to the victims.

EIP or Refund Theft:

The IRS has made great strides against refund fraud and theft in recent years, but they remain an ongoing threat. Criminals this year also turned their attention to stealing Economic Impact Payments as provided by the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Much of this stems from identity theft whereby criminals file false tax returns or supply other bogus information to the IRS to divert refunds to wrong addresses or bank accounts.

The IRS recently warned nursing homes and other care facilities that Economic Impact Payments generally belong to the recipients, not the organizations providing the care. This came following concerns that people and businesses may be taking advantage of vulnerable populations who received the payments. These payments do not count as a resource for determining eligibility for Medicaid and other federal programs They also do not count as income in determining eligibility for these programs. See IR-2020-121, IRS alert: Economic Impact Payments belong to recipient, not nursing homes or care facilities for more.

Taxpayers can consult the Coronavirus Tax Relief page of IRS.gov for assistance in getting their EIPs. Anyone who believes they may be a victim of identity theft should consult the Taxpayer Guide to Identity Theft on IRS.gov.

Senior Fraud:

Senior citizens and those who care about them need to be on alert for tax scams targeting older Americans. The IRS recognizes the pervasiveness of fraud targeting older Americans along with the Department of Justice and FBI, the Federal Trade Commission, the Consumer Financial Protection Bureau (CFPB), among others.

Seniors are more likely to be targeted and victimized by scammers than other segments of society. Financial abuse of seniors is a problem among personal and professional relationships. Anecdotal evidence across professional services indicates that elder fraud goes down substantially when the service provider knows a trusted friend or family member is taking an interest in the senior’s affairs.

Older Americans are becoming more comfortable with evolving technologies, such as social media. Unfortunately, that gives scammers another means of taking advantage. Phishing scams linked to Covid-19 have been a major threat this filing season. Seniors need to be alert for a continuing surge of fake emails, text messages, websites and social media attempts to steal personal information.

Scams targeting non-English speakers:

IRS impersonators and other scammers also target groups with limited English proficiency. These scams are often threatening in nature. Some scams also target those potentially receiving an Economic Impact Payment and request personal or financial information from the taxpayer.

Phone scams pose a major threat to people with limited access to information, including individuals not entirely comfortable with the English language. These calls frequently take the form of a “robocall” (a text-to-speech recorded message with instructions for returning the call), but in some cases may be made by a real person. These con artists may have some of the taxpayer’s information, including their address, the last four digits of their Social Security number or other personal details – making the phone calls seem more legitimate.

A common phone scan is the IRS impersonation scam. This is where a taxpayer receives a telephone call threatening jail time, deportation or revocation of a driver’s license from someone claiming to be with the IRS. Taxpayers who are recent immigrants often are the most vulnerable and should ignore these threats and not engage the scammers.

Unscrupulous Return Preparers:

Selecting the right return preparer is important. They are entrusted with a taxpayer’s sensitive personal data. Most tax professionals provide honest, high-quality service, but dishonest preparers pop up every filing season committing fraud, harming innocent taxpayers or talking taxpayers into doing illegal things they regret later.

Taxpayers should avoid so-called “ghost” preparers who expose their clients to potentially serious filing mistakes as well as possible tax fraud and risk of losing their refunds. With many tax professionals impacted by COVID-19 and their offices potentially closed, taxpayers should take particular care in selecting a credible tax preparer.

Ghost preparers don’t sign the tax returns they prepare. They may print the tax return and tell the taxpayer to sign and mail it to the IRS. For e-filed returns, the ghost preparer will prepare but not digitally sign as the paid preparer. By law, anyone who is paid to prepare or assists in preparing federal tax returns must have a Preparer Tax Identification Number (PTIN). Paid preparers must sign and include their PTIN on returns.

Unscrupulous preparers may also target those without a filing requirement and may or may not be due a refund. They promise inflated refunds by claiming fake tax credits, including education credits, the Earned Income Tax Credit (EITC) and others. Taxpayers should avoid preparers who ask them to sign a blank return, promise a big refund before looking at the taxpayer’s records or charge fees based on a percentage of the refund.

Offer in Compromise Mills:

Taxpayers need to be wary of misleading tax debt resolution companies that can exaggerate chances to settle tax debts for “pennies on the dollar” through an Offer in Compromise (OIC). These offers are available for taxpayers who meet very specific criteria under law to qualify for reducing their tax bill. But unscrupulous companies oversell the program to unqualified candidates so they can collect a hefty fee from taxpayers already struggling with debt.

These scams are commonly called OIC “mills,” which cast a wide net for taxpayers, charge them pricey fees and churn out applications for a program they’re unlikely to qualify for. Although the OIC program helps thousands of taxpayers each year reduce their tax debt, not everyone qualifies for an OIC. In Fiscal Year 2019, there were 54,000 OICs submitted to the IRS. The agency accepted 18,000 of them.

Individual taxpayers can use the free online Offer in Compromise Pre-Qualifier tool to see if they qualify. The simple tool allows taxpayers to confirm eligibility and provides an estimated offer amount. Taxpayers can apply for an OIC without third-party representation; but the IRS reminds taxpayers that if they need help, they should be cautious about whom they hire.

Fake Payments with Repayment Demands:

Criminals are always finding new ways to trick taxpayers into believing their scam including putting a bogus refund into the taxpayer’s actual bank account. Here’s how the scam works:

A con artist steals or obtains a taxpayer’s personal data including Social Security number or Individual Taxpayer Identification Number (ITIN) and bank account information. The scammer files a bogus tax return and has the refund deposited into the taxpayer’s checking or savings account. Once the direct deposit hits the taxpayer’s bank account, the fraudster places a call to them, posing as an IRS employee. The taxpayer is told that there’s been an error and that the IRS needs the money returned immediately or penalties and interest will result. The taxpayer is told to buy specific gift cards for the amount of the refund.

The IRS will never demand payment by a specific method. There are many payment options available to taxpayers and there’s also a process through which taxpayers have the right to question the amount of tax the IRS says they owe. Anytime a taxpayer receives an unexpected refund, and a call from the IRS out of the blue demanding a refund repayment, they should reach out to their banking institution and to the IRS.

Payroll and HR Scams:

Tax professionals, employers and taxpayers need to be on guard against phishing designed to steal Form W-2s and other tax information. These are Business Email Compromise (BEC) or Business Email Spoofing (BES). This is particularly true with many businesses closed and their employees working from home due to COVID-19. Currently, two of the most common types of these scams are the gift card scam and the direct deposit scam.

In the gift card scam, a compromised email account is often used to send a request to purchase gift cards in various denominations. In the direct deposit scheme, the fraudster may have access to the victim’s email account (also known as an email account compromise or “EAC”). They may also impersonate the potential victim to have the organization change the employee’s direct deposit information to reroute their deposit to an account the fraudster controls.

BEC/BES scams have used a variety of ploys to include requests for wire transfers, payment of fake invoices as well as others. In recent years, the IRS has observed variations of these scams where fake IRS documents are used in to lend legitimacy to the bogus request. For example, a fraudster may attempt a fake invoice scheme and use what appears to be a legitimate IRS document to help convince the victim.

The Direct Deposit and other BEC/BES variations should be forwarded to the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) where a complaint can be filed. The IRS requests that Form W-2 scams be reported to: phishing@irs.gov  (Subject: W-2 Scam).

Ransomware:

This is a growing cybercrime. Ransomware is malware targeting human and technical weaknesses to infect a potential victim’s computer, network or server. Malware is a form of invasive software that is often frequently inadvertently downloaded by the user. Once downloaded, it tracks keystrokes and other computer activity. Once infected, ransomware looks for and locks critical or sensitive data with its own encryption. In some cases, entire computer networks can be adversely impacted.

Victims generally aren’t aware of the attack until they try to access their data, or they receive a ransom request in the form of a pop-up window. These criminals don’t want to be traced so they frequently use anonymous messaging platforms and demand payment in virtual currency such as Bitcoin.

Cybercriminals might use a phishing email to trick a potential victim into opening a link or attachment containing the ransomware. These may include email solicitations to support a fake COVID-19 charity. Cybercriminals also look for system vulnerabilities where human error is not needed to deliver their malware.

The IRS and its Security Summit partners have advised tax professionals and taxpayers to use the free, multi-factor authentication feature being offered on tax preparation software products. Use of the multi-factor authentication feature is a free and easy way to protect clients and practitioners’ offices from data thefts. Tax software providers also offer free multi-factor authentication protections on their Do-It-Yourself products for taxpayers.

This week’s article – From IRS.gov – Click Here

Thank you for all of your questions, comments and suggestions for future topics. As always, they are much appreciated. We also welcome and appreciate anyone who wishes to write a Tax Tip of the Week for our consideration. We may be reached in our Dayton office at 937-436-3133 or in our Xenia office at 937-372-3504. Or, visit our website.

– Tammy

– until next week.

Two New Employer Tax Credits July 15, 2020

Posted by bradstreetblogger in : Business consulting, Business Consulting, COVID, COVID-19, General, tax changes, Tax Planning Tips, Tax Preparation, Tax Tip, Taxes, Taxes, Uncategorized , add a comment

July 15, 2020                         

Many businesses that have been severely impacted by Coronavirus (COVID-19) will qualify for two new employer tax credits – the Credit for Sick and Family Leave and the Employee Retention Credit.

Sick and Family Leave – Credit for Sick and Family Leave

An employee who is unable to work (including telework) because of Coronavirus quarantine or self-quarantine or has Coronavirus symptoms and is seeking a medical diagnosis, is entitled to paid sick leave for up to ten days (up to 80 hours) at the employee’s regular rate of pay, or, if higher, the Federal minimum wage or any applicable State or local minimum wage, up to $511 per day, but no more than $5,110 in total.

Caring for someone with Coronavirus

An employee who is unable to work due to caring for someone with Coronavirus, or caring for a child because the child’s school or place of care is closed, or the paid child care provider is unavailable due to the Coronavirus, is entitled to paid sick leave for up to two weeks (up to 80 hours) at two-thirds the employee’s regular rate of pay or, if higher, the Federal minimum wage or any applicable State or local minimum wage, up to $200 per day, but no more than $2,000 in total.

Care for children due to daycare or school closure

An employee who is unable to work because of a need to care for a child whose school or place of care is closed or whose child care provider is unavailable due to the Coronavirus, is also entitled to paid family and medical leave equal to two-thirds of the employee’s regular pay, up to $200 per day and $10,000 in total. Up to ten weeks of qualifying leave can be counted towards the family leave credit.

Credit for eligible employers

Eligible employers are entitled to receive a credit in the full amount of the required sick leave and family leave, plus related health plan expenses and the employer’s share of Medicare tax on the leave, for the period of April 1, 2020, through December 31, 2020.  The refundable credit is applied against certain employment taxes on wages paid to all employees. Eligible employers can reduce federal employment tax deposits in anticipation of the credit.  They can also request an advance of the paid sick and family leave credits for any amounts not covered by the reduction in deposits. The advanced payments will be issued by paper check to employers.

Employee Retention Credit

Eligible employers can claim the employee retention credit, a refundable tax credit equal to 50 percent of up to $10,000 in qualified wages (including health plan expenses), paid after March 12, 2020 and before January 1, 2021.  Eligible employers are those businesses with operations that have been partially or fully suspended due to governmental orders due to COVID-19, or businesses that have a significant decline in gross receipts compared to 2019.

The refundable credit is capped at $5,000 per employee and applies against certain employment taxes on wages paid to all employees.  Eligible employers can reduce federal employment tax deposits in anticipation of the credit.  They can also request an advance of the employee retention credit for any amounts not covered by the reduction in deposits. The advanced payments will be issued by paper check to employers.

Need more information on how to apply? Click here

This week’s article – From IRS.gov – Click Here

Thank you for all of your questions, comments and suggestions for future topics. As always, they are much appreciated. We also welcome and appreciate anyone who wishes to write a Tax Tip of the Week for our consideration. We may be reached in our Dayton office at 937-436-3133 or in our Xenia office at 937-372-3504. Or, visit our website.

Correction/Update to an earlier Tax Tip of the Week regarding municipal income taxes.  A local Income Tax Administrator was kind enough to send the below information to us as follows:

“H.B. 197 sets aside 718.011 of the Ohio Revised Code, stating:

…during the period of the emergency declared by Executive Order 2020-01D, issued on March 9, 2020, and for thirty days after the conclusion of that period, any day on which an employee performs personal services at a location, including the employee’s home, to which the employee is required to report for employment duties because of the declaration shall be deemed to be a day performing personal services at the employee’s principal place of work.

That said, employees who were sent home to work during the pandemic are still considered to be working at their principal place of work and not their city of residence.  That’s why employees should not have had a change in their municipal withholding from pre-pandemic times.  There are those that question the constitutionality of the executive order, so I’m sure that the State or others will address this at a later time.  Unfortunately, due to ORC Section 718, municipalities cannot pass legislation to override H.B. 197 or any section of 718.”

– until next week.

-Mark

Working Remotely? Watch Out for Unintended Tax Consequences! July 1, 2020

Posted by bradstreetblogger in : COVID, COVID-19, tax changes, Tax Planning Tips, Tax Rules, Tax Tip, Taxes, Taxes, Uncategorized , add a comment

  Typically, you are taxed by the location of your physical presence (this is changing now to some degree to better deal with the complexities of the internet).  For example, Ohio cities tax you first where you work and then next where you live.  That is to say that you won’t owe any city tax for your residence city if your workplace is located in a city whose tax rate is equal to or higher than the city where you live.  This is true only if your resident city allows a full tax credit for the city taxes paid where you work and its tax rate is equal to or less than your work city.  Not too long ago, almost all cities allowed a full credit for the tax paid to the city where you are employed.  But this full tax offset is becoming more of a rarity the last few years as city budgets continue to become more and more strained. These deficit situations for state and local governments won’t become any better with the current pandemic placing even greater demands on city finances.  

    For all intents and purposes, your state income tax model differs little from that of the cities.  It is not unlikely to find yourself double taxed by cities AND states.

    Now having attempted to make a long story short and leaving out the numerous tax exceptions for the general tax rules for cities and states as mentioned above; and, all the while assuming you have a good handle on how your state and local taxes should currently be filed, let’s throw you a curve ball.  Let’s presume you are now working from home.  And, your home is in a different city or even a different state than where you work.  What if you are working half the week at home and the rest of the week at work?  All of a sudden, a tax nightmare has developed.  

    I wish I had the silver bullet to answer my own questions.  Perhaps, the cities and states will pass legislation to overcome these added complexities resulting from the pandemic.  But I doubt it.  In the meantime, we better become accustomed to even more tax correspondence from cities and states.  None of them are going to roll-over in their efforts to collect all the monies that they can.  It is always a mystery to me why they would spend megabucks and create huge amounts of ill will in the community all in an effort to collect a nominal amount of taxes.  But some things never change.

This week’s Author – Mark Bradstreet

Thank you for all of your questions, comments and suggestions for future topics. As always, they are much appreciated. We also welcome and appreciate anyone who wishes to write a Tax Tip of the Week for our consideration. We may be reached in our Dayton office at 937-436-3133 or in our Xenia office at 937-372-3504. Or, visit our website.  

– until next week.

IRS Faces Next Challenge: Reopening June 17, 2020

Posted by bradstreetblogger in : General, Taxes , add a comment

June 17, 2020

    WASHINGTON — The Internal Revenue Service cranked out $267 billion in stimulus payments in about two months, faster than many analysts expected. But challenging work lies ahead, such as opening 10 million pieces of piled-up mail and resuming a semblance of normal taxpayer service.                

    The agency, already struggling with budget cuts and reduced staff before the coronavirus pandemic hit in March, was given the monumental task of sending stimulus payments worth $1,200 for most adults and $500 per child to help Americans ride out the economic slump. Despite some hitches—like payments to dead people and debit-card envelopes that looked to some like junk mail—those payments are largely complete, the government said this week. “The IRS has taken on nearly impossible challenges and performed many of them very well,” said Rep. Kevin Brady of Texas, the top Republican on the House Ways and Means Committee.

    Now the agency is trying to slowly reopen dozens of offices around the country and recall thousands of workers as the July 15 tax filing deadline approaches.“It gets tougher from here,” said Mark Everson, a former IRS commissioner.

    Some major operations centers remain closed, and open ones aren’t running at full strength. Refunds are being processed more slowly than usual, agency data indicate. Some telephone assistance is available, but IRS officials say phone lines remain unusually busy and they are directing people to the agency’s website whenever possible. Catching up will take time.

    “If you mailed us something, especially in February, it’s gonna be a while,” said Chad Hooper, an IRS worker in Philadelphia and president of the Professional Managers Association, which represents the agency’s supervisors.

    Meanwhile, the regular tax filing season continues, postponed from the usual April 15 deadline to July 15 as part of the coronavirus relief effort. As of May 29, the IRS had received 6.5% fewer returns than it did last year and processed 13% percent fewer. That suggests many people are waiting longer than usual for refunds. Sometimes the agency’s automated filters block refunds for suspected fraud, requiring a person to check before payments are made, even on electronically filed returns that normally yield fast refunds.

    Michael Whiteley, an unemployed chef in Rochester, N.H., said he filed his tax return in March, expecting a refund of more than $4,000. Instead, he got a notice from the IRS requesting documentation to prove that his son with a different last name was his own. Mr. Whiteley, who had already spent about $500 at H&R Block for tax preparation, said he spent $40 on expedited mail delivery to send follow-up documentation to the IRS in Fresno, Calif.—an office that isn’t set to reopen until the end of June. “I’m still sitting here to this day, waiting,” he said.

    Getting back to normal will be tricky. More than half of agency employees have been working remotely, according to the House Ways and Means Committee. But about 30% have been on paid leave because of the pandemic, and those who staff phone lines generally can’t work from home. The IRS had been trying to make more employees eligible for remote work but didn’t finish doing so before the pandemic started, Mr. Hooper said.

    “Having more modern systems would have been a great thing to have prepared for prior to a thing like this,” said Andrew Moylan, executive vice president of the National Taxpayers Union Foundation, a nonprofit research group affiliated with a conservative organization. “Expect less timeliness, less ability to contact people, less ability to get your questions answered, more problems that people have to sort out.”

    Reopening will be uneven for an agency with offices scattered across the country. Major offices in Utah, Texas and Kentucky reopened this week for employees who can’t work from home. Next come eight states and Puerto Rico, including campuses in Atlanta and Fresno, and that phase could bring back as many as 12,500 workers who aren’t eligible to work remotely. Offices in places with tighter restrictions—including Pennsylvania, Washington, D.C., New York and Maryland—aren’t yet scheduled to reopen.

    Different campuses do different types of work. Many employees have very specialized skills handling certain types of tax returns, creating a complicated management challenge to restore full service. “This is not a McDonald’s where you can move a person from the register to the to-go window,” said Mr. Everson, now vice chairman of Alliantgroup LP.

  The IRS hasn’t restarted services that require face-to-face meetings with the public, such as taxpayer assistance centers and some audit and collections operations. That is a safety concern for taxpayers and the government. Years of hiring freezes and the security of public-sector jobs mean the IRS has an aging workforce that is more susceptible to Covid-19. Employees remain anxious about the risks posed by taking public transportation, being in enclosed facilities with hundreds of co-workers and whether their work stations will be consistently and properly cleaned and disinfected,” said Tony Reardon, president of the National Treasury Employees Union, which represents front-line IRS workers.

    IRS Commissioner Charles Rettig, in a memo to employees, said their health and safety was the agency’s priority. In a statement to The Wall Street Journal, Mr. Rettig said employees worked around the clock in challenging circumstances to provide more than 159 million payments. “As we continue a phased-in reopening, we will do everything possible to accelerate our operations and enhance taxpayer services and processing of refunds,” he said.

    There are other challenges. In March, the IRS announced its “People First Initiative,” suspending some enforcement and collection through July 15 to help taxpayers struggling with unemployment and disruption. At some point, the agency will shift back toward enforcement.

    When will that happen? “It’s going to be a judgment call,” said Diana Erbsen, a lawyer at DLA Piper in New York who is chairwoman of the agency’s advisory council. “It’s not going to be an on-off switch.”

This week’s Author – Mark Bradstreet

Thank you for all of your questions, comments and suggestions for future topics. As always, they are much appreciated. We also welcome and appreciate anyone who wishes to write a Tax Tip of the Week for our consideration. We may be reached in our Dayton office at 937-436-3133 or in our Xenia office at 937-372-3504. Or, visit our website.  

– until next week