Tax Justice Warriors

Just what does IRS Chief Counsel do? Well, they represent the IRS as their client. What does that mean? In this episode, I unpack different job items that IRS Chief Counsel does beyond go to U.S. Tax Court.

 

For example, Chief Counsel advise on different legal matters for other divisions of the IRS. What else do they do? Tune in to learn more.

 

For finding out all kinds of information on the Office of IRS Chief Counsel, head here:

https://www.jobs.irs.gov/resources/job-descriptions/irs-office-chief-counsel

In any profession, it is a curve ball when any skilled person is no longer available. This could be due to death, illness, disability, retirement or just plain turnover at the employer.

 

I looked into succession plans and have some guidance from LITC Administration. There are things to think about when it comes to case review, grant reporting, contacts for outreach and education, and more.

 

This week, a short episode looking at unexpected tax problems following a divorce.

The American Rescue Plan was signed into law by President Joe Biden on March 11, 2021. It contains several provisions. Part of the law focuses on tax provisions as well.

 

In this episode, there is a rundown of top ten items affecting individual tax filers.

 

1) The third round of stimulus payments (economic impact payments)

2) Earned income tax credit expansion

3) The premium tax credit expansion and partial waiver of repayments

4) Unemployment recipients automatically eligible for the premium tax credit

5) Child tax credit expansion

6) Child and dependent care credit expanded

7) Employer provided dependent care assistance

8) Non-taxable unemployment compensation of $10,200

9) Limits on business losses

10) Potential student loan forgiveness non-taxable

 

Tune in to learn more!

 

 

The National Taxpayer Advocate compared Low Income Taxpayer Clinic (LITC) organization to superheroes in a recent blog post:

 

https://www.taxpayeradvocate.irs.gov/news/nta-blog-not-all-superheroes-wear-capes-join-the-low-income-taxpayer-clinic-community-and-be-a-hero-to-taxpayers-most-in-need/

 

Within that blog post, she cites the IRS has the application period open through April 16 for organizations to apply in order to establish a new tax clinic. There is a need for expansion regarding expansion of coverage in Arizona, Florida, Idaho, and Pennsylvania. Also, there are no clinics currently in Nevada, North Dakota, West Virginia, Wyoming, and Puerto Rico.

 

I talk through some of the LITC requirements, but they are all listed in IRS Publication 3319. After that, I discuss the grant report. These are various IRS Form 13424 forms, such as 13424-A, 13424-B, etc.

 

I encourage you to establish a clinic if you have the resources. Otherwise, please consider making a donation or volunteering with your local clinic!

The tax season keeps changing. The IRS announced that the tax filing deadline for federal individual income tax returns are due on May 17. That does not affect corporate taxes or quarterly estimated tax payments. Will it affect your state tax filing – check with your state’s tax agency.

 

How will the changes affect tax filing? I talk through some effects that might occur for tax preparers and the IRS. However it goes for you, I hope your tax season is wonderful.

The American Rescue Plan has now been signed into law. It includes an expansion of the child tax credit for 2021.  That plan expands the age for qualifying children to include 17-year-olds.  It increases the credit to $3,000 per child for many families (with $3,600 being the amount for children under age 6).   The $2,500 earnings floor is removed and the credit will be fully refundable.  Finally, half of the credit will be paid in advance by the IRS making monthly payments to families from July to December 2021.

In this episode, I touch on the child tax credit expansion and discuss the IRS role in distributing those payments of the credit in 2021.  The child tax credit and the earned income credit are times that the IRS is in the role of benefits distributor.  That is a change for the IRS from compliance enforcement.  I look at the dichotomy as the IRS faces their pivot from one role to another.  What will their approach be for the future?

Note:  As of the recording, the American Rescue Plan had not passed into law yet.

This episode provides a roundup of recent tax events and other issues. To begin with, the American Bar Association Midyear Tax Meeting was virtual. I provide highlights regarding the Individual & Family Taxation Committee’s focus on the Tax Gap and the Diversity Committee’s focus on inequality in race and taxes. With the IRS, their new electronic system to upload power of attorney forms seems to be working faster than faxing (2 weeks processing time vs. 2 months). On a personal note, I provide updates regarding teaching this semester, a Tax Court case trial this month and writing for Procedurally Taxing.

 

This is a short episode to provide some highlights on the 2020 tax return that not everyone may be aware of. While I covered some of these items in past episodes, I thought the highlights would be worth mentioning again.

 

Basically:

• the recovery rebate credit is one way taxpayers may get their economic impact (stimulus) payments through filing a tax return, but they may not get as much as they expect

• the earned income credit has a lookback to compare 2020 income and 2019 income to take the most advantageous for the credit

• there is legislation pending that may increase the child tax credit next tax season

• a reminder that unemployment income is taxable income

 

Tune it to learn more details!

This episode details the return of the U.S. Tax Court for hearings in Kansas City, Missouri, and Wichita, Kansas in February 2021.  Tune in to hear about remote proceedings, feedback on the Tax Court upgrade to the DAWSON system, and remote calendar calls.