The IRS has announced that many US taxpayers who claimed the 2014 Earned Income Tax Credit or EITC may receive a letter from the IRS questioning their deduction. The IRS has issued a notification that says many taxpayers will receive a 5621 Form Letter, a 5621-A or both, informing them...
IRS Lowers Mileage Reimbursement Rate for Commercial and Business Expense
The sustained downward spiral in oil prices has resulted in a lower IRS mileage reimbursement rate for 2016. The new rate will be $0.54 per mile, down from $0.575 in 2015. The 3.5 cent per mile drop reflects stabilization in the international oil markets according to the IRS, and is...
IRS Gains Power to Revoke Passports of Delinquent Taxpayers
The President signed the "Fixing America's Surface Transportation Act" into law on December 4, and a portion of this act enables the IRS to revoke the passports of delinquent taxpayers who owe more than $50,000 to the Internal Revenue Service. In a section of the law entitled "Revocation or Denial...
IRS Scammer Tactics Increasingly Aggressive – Warning to Consumers
By Janathan L. Allen, APC of Janathan L. Allen, APC posted in IRS on Monday, December 14, 2015 The IRS has issued another warning concerning scammers posing as the Internal Revenue Service. Most US taxpayers can quickly spot a scam on the phone, but the scammers are becoming much more...
A Staggering 25% of Americans Fail to Claim Earned Income Tax Credit – California Link in Study
By Janathan L. Allen, APC of Janathan L. Allen, APC posted in IRS on Monday, December 14, 2015. Why do more than 25% of eligible Americans fail to claim one of the easiest credits offered by the IRS - the earned income tax credit? In a new study published by...
Topical focus: IRS and charity-related tax reporting
On behalf of Janathan L. Allen, APC posted in IRS on Wednesday, December 16, 2015 Collectively speaking, Americans are a charitable bunch. Millions of people across the country, and certainly in California, regularly donate time, services and money to nonprofit groups and other organizations that do good in their communities....
IRS Extends Refund Timeframe for Many Foreign Returns
The IRS has decided to extend the time frame for refunds for nonresident and certain foreign US taxpayers who use Form 1042NR. The IRS has decided to exceed the 180 day time frame in order to provide additional scrutiny to refund requests leaving many undocumented workers without a refund for...
IRS to use Private Collection Companies to Track Down Tax Offenders
By Janathan L. Allen, APC of Janathan L. Allen, APC posted in IRS Collections on Tuesday, December 8, 2015. Last Friday, President Obama signed the Fixing America's Surface Transportation Act, or "FAST Act" into law. Part of the FAST Act is an order for the IRS to hire private collection...
What is “Willful” Versus “Non-Willful” Conduct to the IRS and How Does That Affect FBAR Taxpayers?
By Janathan L. Allen, APC of Janathan L. Allen, APC posted in IRS on Wednesday, July 2, 2014. The difference between a determination of "willful" versus "non-willful" conduct by the IRS is the difference between a 50% penalty calculation and potentially a 5% penalty for FBAR violations. There are thousands...