Back in August, the IRS listened to Congressional urging that they stop sending out “balance due” notices until they got caught back up on a mail backlog.
Well, last week, we got the news that the IRS has apparently caught up. (Or, well enough, they say.)
That means that they are now resuming the mailings of tax-due notices to taxpayers across Chattanooga and beyond, with outstanding tax bills.
You MIGHT have thought that your little problem would escape notice, but not so. The IRS is back at it.
So, firstly: if you receive one of these notices, get in touch with us immediately: https://login.atomanager.com/ATOM_UST/default.aspx?redirect=webinfoNewClientAppointment.aspx
Secondly, now is a very good time to get your ducks in a row before year-end on any looming cashflow issues you or your Chattanooga business might be facing … because no matter the outcome of the upcoming elections, the IRS WILL be energized to audit and examine every possible source of federal revenue that they can manage to find.
YOU, by the way, are the primary source of their revenue … and they will definitely be watching for ways to get in your wallet.
Thirdly, there is a new category of tax returns that they will be heavily scrutinizing: tax on cryptocurrency.
The IRS has made an important change to the 2020 tax return.
You see, in 2019, the question “At any time during 2019, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency?” was listed at the top of “Schedule 1: Additional Income and Adjustments to Income.”
That means that regular W-2 filers with no other business or rental income or income adjustments would not use this form. They didn’t have to answer the question.
But NOW … In 2020, the IRS has moved the question to the front of the Form 1040. That means that no matter if you are doing a simple return, or not … everyone will need to answer the question: At any time during 2020, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency?
The IRS is getting smart about the ways that people are avoiding them, and cryptocurrency is still the wild west.
So: answer that question properly, or you could be found guilty of perjury.
Another place that the IRS is watching: anyone who earns over $100K. This is the IRS definition of “high earner”. And ESPECIALLY if you didn’t file a return and other organizations reported that you were paid more than that amount … well, you could be in hot water.
But the main takeaway here is this: do not sleep on the IRS. They are ramping up in 2021.
So, let us help you — whether it’s responding to a new situation, or getting ahead of the game so that you don’t receive one of those nasty little letters from the IRS.
We’re in your corner.
John and Wanda King
U S Tax Solutions