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4/2/2020 TaxMama’s® Tax Roundtables ©2019 www.IRSExams.school

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Today’s Topic:

April 2020Tax Roundtable

Welcome to TaxMama’s® Place

- Home of the

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The Book!

• https://www.amazon.com/Small-Business-Taxes-Made-Fourth/dp/1260468186/

• Contains the SECURE Act changes

• McGraw-Hill is now shipping the book to stores

• The audio is nearly ready – just some pick-ups to do

For autographed copies including shipping:1 Book - $25

5 Books - $85


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Patrick Asked

Taxpayer receives both U.S. Social Security and Canadian Old Age Security (Canadian Social Security) which by tax treaty is treated as U.S. Social Security benefits. His previous tax preparer treated it as a pension. I filed amendments 2015, 2016 & 2017 without form 8833 Treaty-Based Return Position Disclosure.

• 2017 was processed and his refund received.

• 2016 form 8833 Treaty-Based Return Position Disclosure was requested- sent and pending.

• 2015 was processed, no change letter received, no refund and no one can tell me why or give me any details as to why the amendment was not processed as submitted. (It was submitted timely - it's been a year now. )

I'm sorry to say Taxpayer Advocate has not been helpful-approximately 4 months in since referral. Suggestions or next step?


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TaxMama Replies

Patrick asked “I'm sorry to say Taxpayer Advocate has not been helpful-approximately 4 months in since referral. Suggestions or next step?”

What would TaxMama do?

Normally, I would call the Practitioner Priority Service and get them to look at the client’s transcripts for 2015 to see if anyone is working the case.

Today….I don’t think you can reach them.

So, first, try looking at the transcript for 2015 to see if you can find any codes about the adjustment/refund.

If you are getting nowhere, get hold of TAS again. They have a new Director, effective this last Monday. She is starting to get things organized again.

Worst case, reach out to your Stakeholder Liaison. Most likely, Area 2 handles international taxpayers (PA) ; area 5 is California – and I know these folkshttps://www.irs.gov/businesses/small-businesses-self-employed/stakeholder-liaison-local-contacts


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Another idea for Patrick!

Contact a member of the Taxpayer Advocacy Panel in your area (California?)

They are listed on this page – but you’ll have to find their contact information elsewhere

https://www.irs.gov/newsroom/irs-extends-deadline-for-2021-taxpayer-advocacy-panel-applications-adds-new-members-for-the-2020-panel


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Kevin Asks

So I am contact you this morning about a subject that everyone has in mind, hopping you will cover this subject tomorrow. The subject is COVID19 and lockdown that effected self employ (with no employee). How can they get credit/refund from Gov. help for their business loss?


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TaxMama Replies

$350 billion allocated for the Paycheck Protection Program, which is meant to help small businesses (fewer than 500 employees) impacted by the pandemic and economic downturn to make payroll and cover other expenses from February 15 to June 30.

Notably, small businesses may take out loans up to $10 million—limited to a formula tied to payroll costs—and can cover employees making up to $100,000 per year.

Loans may be forgiven if a firm uses the loan for payroll, interest payments on mortgages, rent, and utilities and would be reduced proportionally by any reduction in employees retained compared to the prior year and a 25 percent or greater reduction in employee compensation.

https://www.sba.gov/about-sba/sba-newsroom/press-releases-media-advisories/349-billion-emergency-small-business-capital-cleared-sba-and-treasury-begin-unprecedented-public


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Kevin Asks

Just received notification from IRS about form 7200, please cover this form tomorrow if you can.

Form -https://www.irs.gov/forms-pubs/about-form-7200

Instructionshttps://www.irs.gov/pub/irs-pdf/i7200.pdf


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TaxMama Replies – Form 7200

The employee retention credit.

The refundable tax credit is equal to 50% of qualified wages paid to employees after March 12, 2020,

and before January 1, 2021.

A maximum of $10,000 in

qualified wages for each employee for the cumulative total of all calendar quarters may be counted in determining the 50% credit.

Employers are eligible for the credit for any quarter in which they have either had to fully or partially suspend

operation of business because of governmental orders due to COVID-19, or if they have had more than a 50%

decline in gross receipts as compared to the same

quarter a year ago.


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TaxMama Replies – Form 7200


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Em

ploy

ee R

eten

tion

Cre

dit https://www.irs.g

ov/newsroom/irs-employee-retention-credit-available-for-many-businesses-financially-impacted-by-covid-19

FAQs. https://www.irs.gov/newsroom/faqs-employee-retention-credit-under-the-cares-act


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Paycheck Protection Program


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Paycheck Protection Program

https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources

• Content

• Paycheck Protection Program

• Economic Injury Disaster Loans and Loan Advance

• SBA Debt Relief

• SBA Express Bridge Loans

• Guidance for Businesses and Employers

• SBA Products and Resources

• Government Contracting

• Local Assistance

•


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#TAXBUZZCHAT – April 2020

There were 13 interesting questions in yesterday’s Tax Buzz Chat

https://www.taxbuzz.com/blog/weekly-tax-buzz-april-1-2020

They are summarized on the website, with the comments and answers from key Twitter tax professionals. (next meeting May 6, 2019 at 10:00 am Pacific

@taxmama , @taxgirl , @PKubeyEA , @danherronruns

@KeithJonesCPA , @BrettNealCPA , @SylviaDionCPA

@CariWestonCPA , @justinmilleresq , @NayoCarterGray

@J_Stephens_CPA , @MissTaxCat , @MelindaNCPA

@CPA_Trendlines


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Debi Asks

So here is my question. Ethically can we look at our clients see what they need to be informed of and share with them without first having a 7216 filed. I wasn't sure so I sent out generic emails to everyone and let them call me but now with the paycheck protection that only applies to my clients who do payroll. You know I always want to do this ethics thing right so I am asking


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Handout

• You can find today’s handout in the Board after the session

http://irsexams.com/board/index.php?/topic/956-taxmamas-tax-roundtables/

• And at the TaxMama sitehttp://taxmama.com/tax-quips/taxmamas-tax-roundtables-2018/


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California Tax Pros

https://www.cstcsociety.org/2020-summer-symposium-save-the-date-

Meet me in Reno – I am buying dinner on Monday evening


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