September 6, 2019

• The underpayment of the estimated tax penalty has been revised to state “lesser of 80% of the current year’s tax bill or 100% of the amount due for the prior year” (revised from 90%). Additionally, the IRS will now automatically waive the penalty for people who qualify (vs having to apply for relief).
• If you’re relying on a tax preparer to file an extension – know that the onus is still on you. Relying on a tax preparer is not reasonable cause to waive the late filing penalty.
• If you make capital improvements to your primary home in order to accommodate a business, you can depreciate the cost of renovations. However, the area must be “used exclusively and on a regular basis in the trade or business”.
• If the IRS has levied funds from your bank account after March 22, 2017, you have 2 years from that date to contest it. Before 3/22/2017 – you only had 9 months.
• Did you know that the State Department can deny and even revoke your US passport if you owe federal tax debts of $52,000+? This does not apply to individuals with an installment agreement, people in bankruptcy or people living in a federally declared disaster area.
• The IRS reviewed a sample of 2017 1040X amended returns and realized that they issued $360 million in refunds erroneousely. Starting in the 2021 filing season, amended returns can be electronically (vs paper) filed.
• A certain Haverford student tried to fraudulently request President Trump’s tax return by creating a false FAFSA application (as his offspring) and trying to import the President’s tax data. This student is facing a 2 year jail sentence and a $200,000 fine if convincted. So don’t do it! (https://www.inquirer.com/…/trump-tax-returns-haverford-stud…)