Incentive Insider

On May 4th, 2021, Georgia Governor Kemp signed into law HB 149, a bill that creates an election for partnerships and S-corporations to be taxed at the entity level. This is an annual irrevocable election, that has to be completed before the due date of the return, including any extensions.

One of the more common letters sent out by the IRS is Notice CP501. This notice acts as the first step by the IRS to collect on money that is due.

This week we continue our look at common IRS letters and notices. Letter 525, sometimes called the 30-day letter, is a notice of proposed adjustment to your return. It is called a 30-day letter because you only have a 30-day window to respond to it.

Last week, we looked at CP504, the warning the IRS gives before issuing a levy. This week, we are looking at Form 668-A. The IRS will send this form to both the taxpayer and the business that will have to turn over the taxpayer’s property, such as a bank.