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On February 12 the IRS will start accepting individual tax returns for processing. Usually it begins at the end of January, but with the new tax legislation recently passed in December 2020, the IRS needs more time in order to get their systems ready. They are hoping this will help to reduce refu...
The IRS is recommending everyone to use their Get My Payment (GMP) system on the IRS website to check the status of an Economic Impact Payment (EIP). The website will show the status of the first and second Economic Impact Payment (EIP) as well as how the payment was paid. For instance, by direct...
The US Treasury Department along with the Internal Revenue Service (IRS) released guidance today, Revenue Ruling 2021-02, permitting the deductibility of eligible expenses related to forgiven Paycheck Protection Program (PPP) loans. Notice 2020-32 and Revenue Ruling 2020-27 had not allowed deduct...
The IRS Collection Statute Expiration Date (CSED) is the amount of time that the IRS has to collect upon an assessed tax. After this period ends, the IRS has no legal recourse against a taxpayer regarding unpaid taxes. The IRS has to write it off as a loss and move on. The Collection Statute Expi...
Taxpayers that cannot afford to pay their unpaid taxes can apply for a temporary hardship status called Currently Not Collectible (CNC). This is one of various collection alternatives that are available when dealing with the IRS. The taxpayer will have to disclose their assets, liabilities, incom...
The California Department of Tax and Fee Administration (CDTFA) has extended their Small Business Tax Relief Payment Plan for Sales and Use Tax. Small businesses with less than $5 million in taxable annual sales and a maximum of $50,000 in sales and use taxes due will be able to setup a monthly p...
Cash donations up to $300 made to qualified charities during 2020 will be an adjustment to gross income deduction. Taxpayers that use the standard deduction and do not itemized deductions on Schedule A (Form 1040) can temporarily take the full deduction above the line (above Adjusted Gross Income...
An Offer in Compromise Doubt as to Liability (OIC DATL) is filed by a taxpayer that does not agree to some or all of the amount of a tax assessed by the IRS. This is in contrast to an Offer in Compromise Doubt as to Collectibility (OIC DATC) that I wrote about in a previous post where the tax ass...
Taxpayers that do not qualify for an OIC DATC or an OIC DATCSC because they are able to pay their tax liability in full may qualify for an Effective Tax Administration Offer in Compromise (ETA OIC). The ETA OIC program allows an offer for less than the Reasonable Collection Potential (RCP) which ...
The IRS Offer in Compromise Doubt as to Collectibility with Special Circumstances (OIC DATCSC) is a variation of the Offer in Compromise Doubt as to Collectibility (OIC DATC) that I recently wrote about here. Both of these OIC's share the same basic concept that the tax liability is greater than ...

Howard Richardson

IRS and State Tax Representation
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