If taxpayers receive a Form 1099-K, they should use that information with their other tax records to determine their correct tax liability. Taxpayers must report all their income on their tax return unless it’s excluded by law, regardless of whether they receive a Form 1099-K. Taxpayers will receive Form 1099-K for business transactions, including income […]

What is the statute of limitations to audit a tax return or to collect a tax? Generally, under IRC 6501 Limitations on assessment and collection, the statute of limitations for the IRS to audit a tax return and to assess a tax is three years from when the return was filed (whether the return was or was […]

The IRS reminds taxpayers with delinquent returns that they may qualify for penalty relief if they file those returns by September 30. This relief, which the IRS announced on 08/24/2022, waives the failure-to-file penalty for certain 2019 and 2020 returns that weren’t timely filed.  Note. This relief doesn’t apply to the failure-to-pay penalty and interest, which will accrue […]