Issues to Consider After You File Your Tax Return

The tax filing deadline for 2021 has passed. Now that your tax return has been successfully filed with the IRS, there may still be some issues to bear in mind. Here are three considerations: 1. You can throw some tax records away now You should hang onto tax records related to your return for as long as the IRS can audit your return or assess additional taxes. The statute of limitations is generally three years after you file your return (four years for California). So you can generally get rid of most records related to tax returns for 2018 and earlier years. (If you filed an extension for your 2018 return, hold on to your records until at least three years from when you filed the extended...

Amending Returns for Retroactive COVID-19 Tax Relief

The $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act (CARES Act) delivers meaningful tax relief to individuals and businesses. Some of that relief is retroactive, which can affect 2018 and 2019 returns that have already been filed. One retroactive provision can, in some cases, go all the way back to 2013.  Here is a summary of the CARES Act retroactive COVID-19 tax relief measures that can potentially benefit you or your business entity after amended returns have been prepared and filed. Taxpayer-friendly Rules for Deducting Net Operating Losses (NOLs) Business activities that generate tax losses can cause you or your business entity to have an NOL for the year. The CARES Act significantly liberalizes the NOL deduction rules and allows NOLs that arise in 2018–2020 to be...