Businesses may receive notices about information returns that don’t match IRS records
- ByPolk & Associates
- May, 04, 2022
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The IRS has begun mailing notices to businesses and other payers that filed certain returns with information that doesn’t match the agency’s records. These CP2100 and CP2100A notices are sent by the IRS twice a year to payers who filed information returns that are missing a Taxpayer Identification Number, have an incorrect name or have a combination of both. Payers are required to file with the IRS various information returns reporting payments they make to independent contractors, customers and others. These include Form 1099-MISC (Miscellaneous Income) and Form 1099-NEC (Nonemployee Compensation). Contact us if you have questions about filing information returns.
Valuable gifts to charity may require an appraisal
- ByPolk & Associates
- May, 04, 2022
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If you donate valuable items to charity, you may be required to get an appraisal. The IRS requires donors and charitable organizations to supply certain information to prove their right to deduct charitable contributions. If you donate an item of property (or a group of similar items) worth more than $5,000, certain appraisal requirements apply. You must: get a “qualified appraisal;” attach an “appraisal summary” to the first tax return on which the deduction is claimed; include other information with the return; receive the qualified appraisal before your tax return is due; and maintain certain records. Other rules apply to larger gifts and there are exceptions. Contact us with questions.