News for Your Week Ahead: October 22, 2021

This week, Janice Shih discussed the MSATP and MVLS partnership, as well as our upcoming events!

Coming Up: On Thursday, October 28, at 9 a.m., Roy Frick will give an update on the MSA Scholarship Foundation, including how you can help the future of the profession.

Be sure to Like/Follow us on Facebook so you can catch MSATP TV live every week.

MSATP Receives Maryland Volunteer Lawyers Services Partnership Award

MSATP is the proud recipient of the 2021 MVLS Partnership Award! Thanks to the continued generosity of our members who give back by taking on various pro bono tax cases!

To see pictures from the event, click here.

Here’s What Taxpayers Should Know About Backup Withholding | Tax Tip 2021-156

Backup withholding ensures that the government is paid the correct amount of taxes on specific types of payments reported on certain Forms 1099 and W-2G. Here are some facts about backup withholding. Backup withholding is required on certain non-payroll amounts when certain conditions apply. The payer making such payments to the payees does not generally withhold taxes, and the payees report and pay taxes on this income when they file their federal tax returns. There are, however, situations when the payer is required to withhold a certain percentage of tax to make sure the IRS receives the tax due on this income.

For more information, click here.

The Tax Responsibilities That Come With Shutting Down a Business | Tax Tip 2021-153

There are many reasons a business owner may choose to close their doors, and there are many things that must be done to go out of business. Two important steps all business owners must take are fulfilling their federal tax responsibilities and informing the IRS of their plans. The closing a business page of IRS.gov is designed to help owners navigate the process of shutting down.

For more information, click here.

IRS Joins International Organizations in Fighting Charity Fraud During Special Awareness Week | IR-2021-205

The Internal Revenue Service is joining international organizations and other regulators in highlighting Charity Fraud Awareness Week, Oct. 18-22.

The campaign is run by a partnership of charities, regulators, law enforcers and other not-for-profit stakeholders from across the world. The purpose of the week is to raise awareness of fraud and cybercrime affecting organizations and to create a safe space for charities and their supporters to talk about fraud and share good practice.

For more information, click here.

IRS Sets Forth Information For a Valid Research Credit Claim for Refund | IR-2021-203

The IRS has set forth the information that taxpayers will be required to include for a research credit claim for refund to be considered valid. Existing Treasury Regulations require that for a refund claim to be valid, it must set forth sufficient facts to apprise IRS of the basis of the claim. The Chief Counsel memorandum will be used to improve tax administration with clearer instructions for eligible taxpayers to claim the credit while reducing the number of disputes over such claims.

For more information, click here.