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The Internal Revenue Service (IRS) has delayed the April 15 tax filing deadline to May 17, giving taxpayers an extra month to pay any PPP taxes or outstanding levies.
Small business owners were blindsided by the news that they may owe thousands or millions of dollars for the Paycheck Protection Program (PPP) loans they received last year.
A PPP loan can be forgiven as long as at least 60% has been spent on employee payroll costs. Forgiven PPP loans are tax exempt. But those who spent their PPP loans on expenses other than payroll will owe taxes on the loan.
"This extension is absolutely necessary to give Americans some needed flexibility in a time of unprecedented crisis," House Ways and Means Chair Richard Neal and Representative Bill Pascrell said in a statement Wednesday. “While we are pleased with this 30-day extension, we will continue to monitor developments during this hectic filing season."
The tax deadline extension was also necessary because IRS workers are busy processing a third round of $1,400 checks. The IRS said Wednesday it has so far sent about 90 million payments totaling $242 billion.
As of early March 2021, the IRS has been behind in the number of tax returns filed and processed, and in the number of refunds issued.
Deutsche Bank is proposing a 5% work-from-home tax that could raise $49 billion per year in taxes in the U.S.
The Covid-19 lockdowns have caused an unprecedented shift of the U.S. workforce from offices to working remotely at home.
According to reports, Americans who work from home have increased from 5% in 2005 to 56% in 2020.
The bank argues that employees who work from home enjoy less stress, higher pay and savings on expenses such as gas, car repairs, lunch, work clothes, and dry cleaning."
Americans who work from home would pay a 5% tax for each work from home day .
For example, if an American who works from home averages $55,000 a year in salary, a tax of 5 percent works out to just over $10 per working day.
Deutsche Bank's proposal claims "a big chunk of people have disconnected themselves from the face-to-face world yet are still leading a full economic life."
The money raised from WFH employees would subsidize a $1,500 grant to the 29 million workers who can't work from home and/or earn under $30,000 a year (excluding those who earn tips).
T.I. Harris, 37, and Tameka "Tiny" Harris, 42, are reportedly dropping their bid to block the U.S. Internal Revenue Service (IRS) from seizing their assets to repay their substantial tax debt.
The hip-hop star, real name Clifford Joseph Harris Jr., and his wife have been battling IRS officials after they were hit with three tax liens to recover $6.2 million in unpaid taxes.
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The final tax reform bill will pass the Senate today after Florida Sen. Marco Rubio agreed to vote yes on the bill. Rubio earlier threatened to vote no on the tax reform bill because the child-care tax credit wasn't high enough.
The final tax bill, which President Trump will sign, entitles Americans to a $2,000 child tax credit for each child. That doubles the previous child tax credit.
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Bishop Eddie Long is dead but his financial troubles aren't over. The AJC.com reports that the Department of Treasury-IRS filed a tax lien on the late preacher and his wife Vanessa Long.
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Power couple T.I. and Tameka "Tiny" Harris owe the IRS over $4.5 million, according to a report on the NY Post's Page Six.
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Somber signer Lauryn Hill was spotted leaving a Newark, New Jersey court Monday (April 22) after a judge postponed her sentencing and gave her two weeks to pay $504,000 she owes the IRS in back taxes. Hill, 37, fell behind in her taxes after claiming she took a 3-year hiatus from show biz to find herself. Prosecutors charged the Grammy winner with “willfully failing to file income tax returns with the IRS” for 3 years. According to Hill, she wasn't obligated to pay taxes for those 3 years since she wasn't working. But the judge disagreed, saying Hill earned a modest sum of 1.8 million dollars from 2005-2007. She faces up to 5 years in jail and an additional $100,000 in fines.
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