Death and Stimulus

Today TaxMama® wants to tell you about even more news from the IRS. It just keeps on a-comin’!








Dear Family,

The IRS is still in the process of sending out stimulus checks to people, electronically and on paper. Many people were surprised and delighted to receive $1,200 checks for family members who had died in 2018 or 2019. Conveniently, the checks even had DECEASED printed directly on the check.

There has been some controversy about whether or not we had to return those checks to the IRS. Especially since the CARES Act did say that when folks filed their 2020 tax returns, they wouldn’t have to return the money if it turned out they received too much.

And therein lies the answer. People who died in 2018 and 2019 will not be filing 2020 tax returns. (Their estates might for income after death that is still to be distributed to heirs; but that’s not the same thing, is it?)

Yesterday, the IRS updated their FAQs on this topic.

FAQ #10 says to return the money.
FAQ #41 explains how to return the money

Note: The IRS actually says to return the money if the person died before the check was issued (i.e. even in 2020). Many tax professionals do not agree with this. So consider holding on to those funds until this part of the question is resolved.

Taxpayers with cases in the Tax Court

The IRS and IRS Counsel has stepped up to try to help taxpayers with docketed cases settle the cases, while the Tax Court is not in session, formally.  IRS Chief Counsel has scheduled Virtual Settlement Days in Detroit and Atlanta. Frankly, most people who have solid cases generally get them settled at this level anyway without ever setting foot in the Tax Court. So this is an excellent opportunity to settle and close your case. Get your documents together and follow the process the IRS has just set up for you. (If you don’t know what a docketed case is, you don’t have one.) ;~)

Have a passion to help taxpayers?
The IRS is accepting applications for grants to fund Low Income Tax Clinics (LITC) and Tax Counseling for the Elderly (TCE) and Volunteer Income Tax Assistance (VITA) grant programs. Read the instructions to the applications. Although it says you need to provide matching “funds,” the value of your time and your specific team of volunteers can be taken into account.


The Enrolled Agents Examination – PLEASE JOIN US

Prometric sites will not be opening in the month of May. We hope they will open by June 1st.
In the meantime, here’s everything else you need to know about the EA Exam.

Regardless, stared our class with Orientation last Saturday morning.
We have only taught one class this week – the next one is tonight.
You can easily catch up.
So sign up right away.

You’ll be ready to pass when the testing opens!

This is a great time to improve (or develop) your skills as a tax professional.
Incidentally, if you are presently unemployed, check with your unemployment office or business insurance coverage – they just might be able to pay your tuition.


Small Business Taxes Made Easy – News!

Well, my friends, the book is out and healthy. The Kindle version is available. And the audio version will be out this month.

I would really appreciate it if you have the book and like it – to please post a review at . This is the best version of the book ever. 

And for those people in business, or starting a business, or with clients who operate a business, we are starting the 12-week course based on the book, at CCH CPE Link. (Secret: You can get a better price if you sign up for the CCH CPE Link subscription program – and get access to many other useful courses!)

The course will follow each chapter of the book – but will also provide help to deal with your business issues during this COVID19 shutdown and quarantine. Who knows, it might help you save your business – or your finances!

Reminder – Some Helpful IRS Links

Which IRS services are open and available – keep an eye on this link

Dealing with audit or collections issues – IRS is keeping this page up to date

Of course, all the filing and paying deadlines

And a great chart: How to Use the Tools on to Get Your Economic Impact Payment

here are lots more things going on – watch the information in the IRS Newsroom –  and

And remember, you can find answers to all kinds of questions about taxes and business issues, and Enrolled Agent tax education, free. Where? Where else? At

Incidentally, I don’t know if you know –® is a free resource for people to get answers to tax questions BEFORE they make major, costly moves.

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