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
Five Tips for Recently Married or Divorced Taxpayers with a Name Change
Here are five tips for recently married or divorced taxpayers with a name change. If you changed your name after a recent marriage or divorce, the IRS reminds you to take the necessary steps to ensure the name on your tax return matches the name registered with the Social Security Administration. A mismatch between the…
You Thought FBAR (Foreign Bank Account Report – Form TD F 90-22.1) Was Bad?
You Thought FBAR (Foreign Bank Account Report – Form TD F 90-22.1) Was Bad? By Ron Cohen, CPA, MST Partner Greenstein, Rogoff, Olsen & Co., LLP PLEASE See: http://www.calcpa.org/Content/26096.aspx We are happy to help you meet these old & new disclosure requirements. Non-reporting subjects a taxpayer to horrendous penalties, even if no tax is due.…
What the IRS Has On File About You and How to Obtain Your Tax Files
What the IRS Has On File About You and How to Obtain Your Tax Files IRS liens and levies can wreak havoc on a person’s life, making it difficult to obtain financing on a home or a car and wiping out savings. Maybe you want access to your tax files to see where the problem…
How to Respond to That FATCA Letter You Just Received in the Mail
How to Respond to That FATCA Letter You Just Received in the Mail Are you among the many Americans who have a bank account(s) in another country? If you are, then you have probably received a letter in the mail recently from the IRS. If you haven’t, then it’s almost assuredly on its way. So…