Blog For Tax Law In Boston

FBAR Penalties Applied by Fifth Circuit Court of Appeals to Each Unreported Account

In a recent case concerning the civil penalties for failing to report non-U.S. financial accounts on the Foreign Bank Account Report, the U.S. Court of Appeals for the Fifth Circuit surprisingly determined that FBAR penalties are calculated based on the number of accounts that were not reported rather than the number of FBAR forms that were not filed.

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No deduction for business expenses paid with forgiven PPP loan proceeds

Paycheck Protection Program – No Deduction Allowed for Expenses Paid with Forgiven Paycheck Protection Program Loan Proceeds – IRS Notice 2020-32 On April 30, 2020, the Internal Revenue Service (“IRS”) issued Notice 2020-32 which explains no deduction is allowed under the Internal Revenue Code for an expense that is otherwise deductible if the payment of

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Attention employers/employees currently telecommuting due to COVID-19

Massachusetts Department of Revenue has promulgated an emergency regulation and issued a Technical Information Release addressing personal income tax/withholding requirements, sales/use tax nexus, corporate excise tax nexus and apportionment, and Massachusetts Family and Medical Leave issues related to employees currently telecommuting due to the COVID-19 pandemic. Overview: On March 10, 2020, Massachusetts Governor Charlie Baker

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Taxpayers in direct debit installment agreements with IRS must take action to suspend monthly payments due between April 1 and July 15, 2020, pursuant to the People First Initiative

Overview: On March 25, 2020, the Internal Revenue Service (IRS) unveiled the People First Initiative, which provides taxpayers with various relief as a result of the difficulties experienced from COVID-19. As part of the People First Initiative, IRS suspended installment agreement payments due between April 1 and July 15, 2020, for taxpayers that are unable

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CARES Act provides incentives for charitable contributions by increasing the charitable deduction

Overview: The CARES act, passed on March 27, 2020, allows individuals and corporations to deduct greater amounts of charitable contributions. In Detail: Election to not itemize deductions allows for $300 deduction under §2204 For those individuals who elect not to itemize their deductions and therefore would not otherwise be allowed to deduct charitable contributions, §

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DOR Issues Tax Filing and Payment Relief for Personal Income and Corporate Excise Taxpayers Affected by COVID-19

Overview: In light of COVID-19, Massachusetts enacted Bill H. 4598, “An Act to Address Challenges Faced by Municipalities and State Authorities Resulting From COVID-19.”  Pursuant to the legislation, the deadline for Massachusetts personal income tax return filing and payment has been extended from April 15, 2020 to July 15, 2020. In response to this legislation,

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IRS issues Filing and Payment Deadlines Questions and Answers with respect to the relief granted under Notice 2020-18

Overview: In response to the ongoing COVID-19 emergency, on March 21, 2020, the Internal Revenue Service (IRS) issued Notice 2020-18, extending the Federal income tax return filing and payment deadline to July 15, 2020. As a follow up, the IRS posted answers to frequently asked questions regarding the notice. Notice 2020-18 FAQs Key Takeaways: Any

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Recent IRS announcements aimed at providing taxpayer relief in response to COVID-19 could create a late-filing penalty trap for Form 3520 filers

Overview: Generally, a U.S. person’s Form 3520 is due on the 15th day of the 4th month following the end of such person’s tax year for income tax purposes, which, for individuals, is April 15 (note, exceptions exist for U.S. persons living/working outside of the U.S. and Puerto Rico, and U.S. persons in the armed

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IRS Unveils New People First Initiative in Response to COVID-19

IRS unveils new People First Initiative in response to COVID-19. Relief includes suspension of existing Installment Agreement payments and involuntary collection action for certain taxpayers, in addition to providing other taxpayer-friendly provisions. Overview: To help people facing the challenges presented by COVID-19, the Internal Revenue Service (IRS) announced a series of steps to assist taxpayers by

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IRS Issues Automatic Postponement of April 15, 2020 Deadline to File Federal Income Tax Returns and Make Federal Income Tax Payments Until July 15, 2020

IRS issues automatic postponement of April 15, 2020 deadline to file Federal income tax returns and make Federal income tax payments until July 15, 2020. FAQs also provided by IRS to further clarify the provisions. Overview: In response to the ongoing Coronavirus Disease 2019 (COVID-19) emergency, the Department of the Treasury (DOT) and the Internal Revenue

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