Category: IRS

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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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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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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IRS to End Offshore Voluntary Disclosure Program

The Internal Revenue Service (IRS) announced on March 13, 2018 that it will be ending the Offshore Voluntary Disclosure Program (OVDP) on September 28, 2018. If you have an undisclosed foreign bank account, contact McMahon & Associates to learn how to come into compliance with the IRS.

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Sean McMahon Discusses Tax Trends and Challenges in Interview with Massachusetts Lawyers Weekly

In a recent interview with Massachusetts Lawyers Weekly In House Counsel, D. Sean McMahon discusses trends in tax law, challenges to the legal profession and how McMahon & Associates assists taxpayers.

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IRS Wins Captive Insurance Tax Case

In August 2017, the U.S. Tax Court ruled in favor of the Internal Revenue Service (IRS) in a case involving a microcaptive insurance company, Avrahami v. Commissioner, 149 T.C. No. 7 (2017), providing clear direction to the IRS to pursue additional cases.

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IRS Appeals Office to Conduct In-person Conferences Again

The Internal Revenue Service (IRS) will once again conduct in-person conferences for field office appeals if requested by a taxpayer.

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The information contained in the McMahon & Tivnan, PC website is solely for informational purposes and does not create an attorney-client relationship or constitute legal advice. Unsolicited information transmitted electronically to our attorneys via this website or the Internet is not considered confidential.