Monthly News: November 2019

One of the latest audit triggers with the IRS is taxpayers who got subsidies for buying health insurance on an exchange.  The IRS computers are flagging taxpayers that don’t file returns after getting the subsidy or file a tax return that doesn’t correctly report the credit. 

Taxpayers who want to receive a child tax credit must have a social security for each child on the return.  There isn’t an exception allowed even if you have a religious objection since this is in the tax reform law.  Congress is the only one who can provide easing.

Virtual currency taxation guidance has finally been provided by the IRS.  The 2019 tax return requires taxpayers to answer a question on Schedule 1 about their virtual currency activities.  The areas of contention regarding virtual currency and how it’s treated are addressed in Revenue Ruling 2019-24.  These rules are very complicated so I would advise you to see a tax pro.

The Internal Revenue Service has urged taxpayers to act now to avoid a tax-time surprise and ensure smooth processing of their 2019 federal tax return.  There are things taxpayers can do now to prepare for the 2020 tax season ahead.  The IRS urges everyone to perform a paycheck or pension income checkup.  Taxpayers should gather documents and organize tax records now.