IRS Still Processing 6.7 Million Returns from Last Year
1) IRS Still Processing 6.7 Million Returns from Last Year, Could Extend Tax Deadline for 2021
https://www.taxpracticeadvisor.com/individual-income-taxes/news/21212072/irs-still-processing-67-million-returns-from-last-year-could-extend-tax-deadline-for-2021
2) Tax Provisions in the American Rescue Plan Act:
https://www.journalofaccountancy.com/news/2021/feb/tax-provisions-american-rescue-plan-act.html?utm_source=mnl:alerts&utm_medium=email&utm_campaign=27Feb2021&utm_content=button
3) Revenue Ruling 2021-06 provides the rates for interest determined under Section 6621 of the code for the calendar quarter beginning April 1, 2021, will be 3 percent for overpayments (2 percent in the case of a corporation), 3 percent for underpayments, and 5 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 0.5 percent.
Revenue Ruling 2021-06 will be in IRB: 2021-12, dated March 22, 2021.
4) Form 1099 NEC California Issues:
We discovered the IRS is not forwarding the Forms 1099-NEC to most states…as it has for Forms 1099-MISC in past years. This is because the form is new and, oddly, the normal document sharing process between the I.R.S. and state tax authorities has not been established for this particular form.
For California filing purposes, I have attached the link to California FTB 1099 info sheet for your reference.
https://www.ftb.ca.gov/file/business/information-returns.html
The 1099-NECs are due to California 2/28/21 per the attachment. Since that date is a Sunday, it is extended to Monday, 3/1/21.
If you used a service to process your 1099s, please check with them to see if they can (or did) e-file the state copy for you. If you did them manually, you can mail the paper form. The address to file the paper forms is:
Franchise Tax Board
PO Box 942840
Sacramento, CA 94240-6090
As an additional option, GROCO does have an FTB Swift e-filing account. To use this, we will need to input your company information and details from your Tax Year 2020 IRS Form 1099s in our system before we can e-file them. Please let us know if you would like this option.
If you are located in a different state and need assistance with that state’s requirements, please contact us:
Greenstein Rogoff Olsen & Co
rcohen@groco.com
510-797-8661
IRS Makes It Difficult to Use “Separate Share” Trusts
IRS Makes It Difficult to Use “Separate Share” Trusts By Mary Kay Foss California CPA, August 2003 The IRS has issued a series of private letter rulings (LTRs 200317041, 200317043, 200317044) this year that make it difficult to use “separate share” trusts. A separate share trust is a trust named as an IRA beneficiary that…
Deductions Available to Collectors at Charity Auctions
Deductions Available to Collectors at Charity Auctions Posted: 7/25/11 Collectors who want to make donations may consider donating artwork and collectibles to charity auctions. If this is something you are thinking about and would like to take full tax benefits, the following tips may help. Making Donations to Charitable Organization Auctions: 1. Make sure you…
Make Money Consistently Through Through a Small Investment
Make Money Consistently Through Through a Small Investment People often think that in order to become an investor you need a lot of capital to make it worth your while and believe me, nothing can be farther from the truth. Certainly, if you are planning to make a living exclusively out of your investment, you…
Investing with Style
Investing with Style How do you define your approach to investing? There may be many answers to that question. One answer goes to the style of investing that you choose: value or growth. Are you looking for value? The goal of a value investor is to seek out “bargains,” finding those companies whose stock may…