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Post-tax season 2021 survey: The new normal for accounting firms

Post-tax season 2021 survey: The new normal for accounting firms
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IRS releases data on activities during COVID

The Internal Revenue Service released a Data Book Thursday highlighting the IRS’s activities this past fiscal year, particularly in response to the pandemic. During the COVID-19 pandemic, the IRS developed new technology and furnished the equipment needed to allow thousands of its staff to work from home, enabling the IRS to resume processing returns and providing phone assistance to taxpayers. The IRS processed more than 240 million tax returns, and collected nearly $3.5 trillion in federal taxes during the fiscal year, approximately 96% of federal revenue from all sources. The IRS needed to contend with numerous challenges during the pandemic, including a newly remote workforce and distributing millions multiple rounds of stimulus payments to aid the economy. In the first round, under the CARES Act, the IRS issued 161.9 million Economic Impact Payments, 122.5 million by direct deposit, 35.8 million by check, and nearly 3.6 million by debit card. Under the COVID-Related Tax Re

What is Form 5329: Additional Taxes on Qualified Retirement Plans?

What is the Generation-Skipping Tax?

What is the Generation-Skipping Tax? If you re a part of a family trust, the generation-skipping tax may be a financial option to consider. Author: May 30, 2021 8:00 AM EDT If you re a part of a family trust, the generation-skipping tax may be a financial option to consider. Estate taxes can take a big bite out of your family s wealth. In the past, one strategy to reduce estate taxes was to skip a generation of heirs to avoid the double estate tax liability that would have occurred if there were two transfers (one from parent to child and another from child to grandchild).

Reflecting on a busy tax season

Reflecting on a busy tax season This year’s tax filing deadline has come and gone and now local tax experts on the Coast are reflecting on a season impacted by the COVID-19 pandemic. At Sue Richardson Accounting in Gulfport, they say the days leading up to yesterday’s deadline were very busy for them as a business as many people had questions about new tax topics. - Advertisement - The introduction of stimulus payments and the recovery rebate credit have meant big changes to tax preparation. Tax Preparer Olivia Fairley says the pandemic has caused delays in receiving tax refunds as well. “This year, and in the preceding year for 2019 tax, those times have been extremely delayed due to the pandemic, due to the IRS closing their phone lines, it’s very hard to get in touch with people, very hard to get information. Their systems are not updating as quickly as they need to update.”

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