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    Month: February 2021

    Using a Portal for Document Exchange

    At this time of year, practitioners exchange documents with clients on a daily basis.  It is vital to keep such document exchanges secure, since most of these documents include very sensitive information. Text messages or an email attachment that is not encrypted with a password is extremely vulnerable to interception by identity thieves.  Since many clients do not think about the need for suc...

    Determining EIP Received

    In order to determine whether a client is eligible for the recovery rebate credit (discussed in our post on January 12, 2021), practitioners must know the amount of economic impact payments (EIPs) received by the client in/around April 2020 and again beginning in January 2021.  IRS Notice 1444 shows the amount of the first EIP and Notice 1444-B shows the amount of the second EIP.  If a client ...

    PPP Forgiveness and Basis

    As discussed in our December 22, 2020 post, the Consolidated Appropriations Act of 2021 clarified that expenses paid with funds from the Paycheck Protection Program (PPP) are fully deductible, even though the loans were or will be forgiven.  The law also clarifies that the adjusted basis of owners of entities with PPP loans will be increased by the tax-free income resulting from the forgiveness...

    IRS Mailing Address Changes

    Practitioners who have clients that prefer to make certain tax payments using a paper check need to be aware of certain mailing address changes made by the IRS. Form 1040-V For residents of New York, Connecticut, New Jersey, Pennsylvania and certain other states, Form 1040-V, Payment Voucher, for the 2020 tax year is now mailed to: Internal Revenue ServiceP.O. Box 931000Louisville, KY 40293-1000...