Angel Zhen CPA

 

AICPA recommends changes to e-signature requirements By Sally P. Schreiber, J.D. June 8, 2020 RELATED June 3, 2020 IRS permits remote signatures for plan loan consents May 28, 2020 E-filing of Form 1040-X coming this summer May 7, 2020 AICPA proposes broad range of tax relief to aid economic recovery TOPICS AICPA Advocacy Tax IRS Practice and Procedure The AICPA Tax Executive Committee (TEC) has sent the IRS a  letter  requesting the Service update and modernize its e-filing signature requirements in four areas in response to the COVID-19 pandemic but with the aim of adopting the changes permanently to make it easier for all taxpayers and tax practitioners to use electronic signatures. In the letter, signed by TEC Chair Christopher W. Hesse, CPA, and addressed to IRS Commissioner Charles P. Rettig, the AICPA acknowledges the great efforts the IRS is making to accommodate taxpayers and tax practitioners during the pandemic, but says it also believes the “pandemic has highlighte...

New FAQs address PPP loan forgiveness issues By Jeff Drew August 4, 2020 RELATED July 30, 2020 PPP and pandemic-related tips for not-for-profits July 24, 2020 PPP forgiveness: No need to rush, and other tips July 20, 2020 New AICPA tool automates PPP loan forgiveness process TOPICS COVID-19 Paycheck Protection Program Management Accounting The U.S. Small Business Administration (SBA), in consultation with Treasury, released guidance Tuesday answering 23 frequently asked questions regarding the forgiveness of Paycheck Protection Program loans. The FAQs, published in a new  10-page document , are divided into four sections addressing different aspects of the process and calculations PPP borrowers should use to determine how much of their loan is forgivable. Following is a brief description of each section and highlights from the guidance provided. FAQ sections and highlights General loan forgiveness:  This section contains three FAQs. The first one clarifies that sole proprietor...

IRS to allow faxing of automatic method change requests By Sally P. Schreiber, J.D. July 30, 2020 RELATED July 17, 2020 Fed expands Main Street Lending Program to more not-for-profits June 30, 2020 IRS will not postpone July 15 deadline June 11, 2020 Leave-based donation program available during pandemic TOPICS COVID-19 Tax Tax Accounting (Methods & Periods) IRS Practice and Procedure In response to the coronavirus pandemic, beginning July 31, the IRS is allowing taxpayers that file Form 3115,  Application for Change in Accounting Method ,   to fax the duplicate copy of the request, instead of mailing a paper copy. Usually the duplicate copy is mailed the Ogden, Utah, IRS office, but now taxpayers can fax it to 844-249-8134. Taxpayers should still file the original copy with their tax return. The new procedure does not apply to nonautomatic accounting method changes, which are governed by separate procedures during the pandemic under Rev. Proc. 2020-29. The IRS explained i...

IR-2020-172, July 29, 2020 WASHINGTON — The Internal Revenue Service provided a reminder today that the Coronavirus Aid, Relief, and Economic Security (CARES) Act can help eligible taxpayers in need by providing favorable tax treatment for withdrawals from retirement plans and IRAs and allowing certain retirement plans to offer expanded loan options. Can I get money from my retirement account now? Under the CARES Act, individuals eligible for coronavirus-related relief may be able to withdraw up to $100,000 from  IRAs  or workplace  retirement plans  before December 31, 2020, if their plans allow. In addition to IRAs, this relief applies to 401(k) plans, 403(b) plans, profit-sharing plans and others. These coronavirus-related withdrawals: May be included in taxable income either over a three-year period (one-third each year) or in the year taken, at the individual's option.   Are not subject to the 10% additional tax on early distributions that would otherwise a...

IRS Tax Tip 2020-69, June 11, 2020 Later this summer, for the first time taxpayers will be able to file their  Form 1040-X, Amended U.S Individual Income Tax Return  electronically. Making this form electronically fileable has been a long-time goal for the IRS. It will greatly benefit the tax professional community and taxpayers. The new electronic option will allow the IRS to receive amended returns faster while minimizing errors normally associated with manually completing the form. It will also provide the IRS with more complete and accurate data to help support customer service representatives answer taxpayer questions. When the electronic filing option becomes available, taxpayers will only be able to amend tax year 2019  Forms 1040  and  1040-SR  returns electronically. In general, taxpayers will still have the option to submit a paper version of the Form 1040-X and should follow the instructions for preparing and submitting the paper form. Whether an...

Overview Beginning January 1, 2020, California residents must either: Have qualifying health insurance coverage Obtain an exemption from the requirement to have coverage Pay a penalty when they file their state tax return You will begin reporting your health care coverage on your 2020 tax return, which you will file in the spring of 2021. Make sure you have health care coverage To avoid a penalty, you will need health coverage for each month beginning on January 1, 2020 for: Yourself Your spouse or domestic partner Your dependents Many people already have qualifying health insurance coverage through: Employer-sponsored plans Coverage purchased through Covered California or directly from insurers Medicare Most Medicaid plans Contact your plan provider to verify if their specific plan meets the minimum essential coverage (MEC) requirements. Get coverage If you do not have coverage, open enrollment continues through January 31, 2020. Visit  Covered California  to sign up for heal...