IRS is back in business!

by Marc Enzi

IRS is back in business, well, technically they were never out of business but this COVID crisis definitely slowed them down and created a backlog of correspondence, it delayed tax season by 3 months, and it will definitely take more than 3 months for IRS to catch up. All that said, IRS has let it be known that they are back in business and the compliance and enforcement initiatives they had planned for early this year are now delayed but being brought on line. In simple terms this means that there is a new Sheriff in town and although the 1st & 2nd quarters are a mess, the IRS has plans for better tracking of who’s been naughty, who’s been cheating, and who’s not been filing. Their computers are making a list and checking it twice. So now is definitely not the time to be playing fast and loose with the rules, and if you have been sloppy with your books and record keeping, this is fair warning to tighten it up. Make sure you separate business from personal accounts and do not mix personal spending with business accounts. Make your tax deposits on time or even a bit early. If you have a virtual currency account or several, make certain you disclosed it on your 2019 tax return and going forward. Virtual currency IRS is hot button item with IRS and they are using wide ranging database analytics to flush out who has disclosed the accounts and who has not and who has not reported the income. If any of this worries you, give us a call, we can help sort it out before you get the letter in the mail box or the knock on the door. If you do ever get that knock on the door, please take their card then decline to speak, answer or sign anything and close the door, then call Tax Solutions at 281-578-1040, we can help.

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