The advances going out today represent a prepayment of the tax refunds parents expect to receive at filing time next year. If you received a tax refund by direct deposit earlier this year, check your bank account to see if you have a direct deposit payment of $300 for children age 6 and under, or…

Victims of this spring’s storms and tornadoes in Tennessee will have until Aug. 2, 2021 to file various individual and business tax returns and make tax payments. Following The recent disaster declaration issued by the Federal Emergency Management Agency (FEMA),  the IRS is providing this relief to taxpayers affected by storms, tornadoes, and flooding that…

The federal income tax deadline has passed for most individual taxpayers. However, some haven’t filed their 2020 tax returns or paid their tax due. If an individual taxpayer is owed a refund, there’s no penalty for filing late. On the other hand, tax owed and not paid by May 17, 2021 is subject to penalties…

IRS suspends requirement to repay excess advance payments of the 2020 Premium Tax Credit The American Rescue Plan Act of 2021 suspends the requirement that taxpayers increase their tax liability by all or a portion of their excess advance payments of the Premium Tax Credit (excess APTC) for tax year 2020. A taxpayer’s excess APTC is the…

In a previous tax update I talked about how tax administration this year was so jumbled that it seemed as though “up is down” and “down is up.” One of my favorite singers, Tyrone Davis, had a song in 1970 titled “Turn Back the Hands of Time.” When the American Rescue Plan was enacted on…

… due to disruptions of the fuel supply chain. The Internal Revenue Service, in response to disruptions of the fuel supply chain, will not impose a penalty when dyed diesel fuel is sold for use or used on the highway in the States of Alabama, Delaware, Georgia, Florida, Louisiana, Maryland, Mississippi, North Carolina, Pennsylvania, South…

In accordance with the provisions of SB352, the due date for the filing and payment of state individual income tax for the 2020 tax year has been automatically extended to correspond with the extended federal due date of May 17, 2021. Individual taxpayers who timely file and pay any taxes due for the 2020 tax…

Relief from Penalty for Failure to Deposit Employment Taxes Notice 2021-24 amplifies the guidance in Notice 2020-22, 2020-17 I.R.B. 664, which provides for penalty relief under section 6656 of the Code for an employer’s failure to timely deposit Employment Taxes with the IRS.  This notice provides relief from section 6656 for employers required to pay…