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
How Will the Young Generation Learn to Be Great Leaders?
How Will the Young Generation Learn to Be Great Leaders? Our nation has been the spawning ground of many of the world’s greatest leaders, including political, business and religious leaders. There are great leaders in all the world’s top organizations and businesses. After all, having great leaders is one of the biggest keys to having…
If You Have A Secret Offshore Account, Beware
If You Have A Secret Offshore Account, Beware The IRS has been hunting for cheats for as long as people have been paying taxes. Whether it’s people adding extra dependents to save a few dollars on their returns, or the ultra-wealthy hiding money in secret offshore accounts, the IRS always wants to collect what it…
Is Your Business’ Accounting Firm Up to The Task?
Is Your Business’ Accounting Firm Up to The Task? Businesses and individuals use accounting firms for several reasons, including tax planning and preparation, accounting, business valuations, consulting and wealth planning & management. However, not all accounting firms offer all of these services, which means potential customers might have to use multiple firms in order to…
Lawmakers Hand Out Some Last Minute Tax Breaks
Lawmakers Hand Out Some Last Minute Tax Breaks Merry Christmas taxpayers. Lawmakers in Washington have finally made a move to pass several tax extenders that have been hanging in limbo since the big crystal ball last dropped at 12:00:01 on January 1, 2014. So now that these tax breaks have been extended, what does that…