INFORMATION DEPARTMENT VOLUME 10, NUMBER 8
Tax Tidbits IRS Debunks Five Tax Refund Myths   Are you watching for your tax refund? The July 15 tax deadline is now behind us, so unless you extended to October 15 to cut your audit risk, you might be thinking about a juicy tax refund that you hope will come quickly. The day after tax day, the IRS is quick to remind everyone there is no secret way to find out exactly when a refund will be issued. The IRS says when it comes to tax refunds, a few common myths keep circulating and misinforming taxpayers. IRS lays out these key facts to help you understand the refund process. Taxpayers who file electronically and use direct deposit can expect their refund faster than those who mail a paper return, especially since the COVID-19 outbreak. Taxpayers who file a paper tax return are likely to face processing and refund delays. The IRS continues to process electronic and paper tax returns, issue refunds, and accept payments. The IRS is experiencing delays in processing paper tax returns due to limited staffing. This is causing refund delays. Taxpayers who have already filed a paper return should know that the IRS is processing paper returns in the order in which they are received. In addition, interest on individual 2019 refunds reflected on returns filed by July 15, 2020, will generally be paid from April 15, 2020, until the date of the refund. Interest payments may be received separately from the refund and are considered taxable income in the year received. Taxpayers who filed a paper return should not file the same tax return again or call the IRS. Common myths about tax refunds include the following: To view the full text of the article, please click here.	Top Stories of August 2020 TAXING DAMAGES Plaintiff Wins Roundup Weedkiller Appeal But Faces IRS Taxes The California Court of Appeals has upheld a whopping verdict against Roundup. How will this reward be taxed, you might ask? The plaintiff will have to contend with new tax rules that make how legal settlements are taxed even trickier than in the past. Garmin Hack’s $10M Ransom Payment, $10M Tax Deduction Yet again, there has been a major cyber-attack, this time of Garmin, the navigation company. It was hit by a ransomware attack on Thursday, leaving customers to wonder whether Garmin will pay $10 Million in ransom. CALIFORNIA TAXES California 13.3% Tax Rate May Be Raised To 16.8%...Retroactively Most Californian’s think they already pay high taxes, and they are not wrong. But a tax bill, AB 1253 (Santiago), would impose even higher taxes, and retroactively to January 1, 2020. TAX PLANNING Founders and Substantial Risk of Forfeiture: What, Me Worry? Ordinary income or capital gain? It is one of those classic and evergreen subjects that never go out of style. Company founders don’t go out of style, either, and they sometimes do not focus too much on exactly how they end up with stock. TAX SEASON 2020 Tax Return Filed With IRS, But Should You Amend It? You filed your taxes, but what if you realized you made a mistake, forgot your W-2, or omitted income from a Form 1099? It is not too early to amend, but should you? CRYPTO TAX PLANNING Crypto Tax Disclosures Can Help With Internal Revenue Service Crypto and taxes hardly go together like cream and sugar. Yet every crypto investor or business these days faces them. For many, starting with the United States Internal Revenue Service’s launch of the “it’s property, not currency” mantra in 2014, it has been six long years of trying to comply. However, there are plenty of useful tools available that may help with the process. IRS Tax Warnings on Ethereum’s Fifth Anniversary As important as Ethereum has become, even eclipsing Bitcoin (BTC) in some circles, it is no wonder that its fifth birthday has prompted comments — some prophetic, others nostalgic. Few, however, will mark the occasion by thinking about taxes, but that could be shortsighted.
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