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Dealing With Post Tax Filing Issues

  Sanjiv Gupta CPA  Published 

Transcript from Sanjiv Radio Show:

In Today's show we will talk about tax filing, the extensions, and the mistakes that one does encounter. When they do the taxes. We're going to cover some of the topics relating to that important area. In this show today. In our dollar update, the IRS has come out with a new guidance, which is revenue procedure 2021/20 which allows taxpayers who reduced their deductions for expenses paid using the paycheck Protection Program loan for expenses to elect those tax deductions in the following taxable year. Rather than amending the return, what you're saying is if you have taken the PPP loan and use that loan money for expenses, and you filed a return, before they came to note that you can double dip those expenses and you file the return without taking those expenses. You don't need to amend those returns, you can file a deduction for those expenses in the following year. That's a welcome relief, a lot of things aren't changing in this area.

We have been waiting for a lot of guidance on this. IRS did come out in the month of February for double realief of expenses. But we are not filing any return. Not many CPAs filed the returns, they were keeping those returns on hold. But then California also was playing all the freaking the game, they did not come out with all the things whether they allowed double dipping or not allowed double dipping, they came out last one month back where they said you can use the double dipping for expenses on California return provided they meet that 25% reduction in revenue for any one quarter. And they give more clarity at how to calculate those deductions. But it did not come out with the form that can be used to calculate all those things, they have not come out with any kind of calculation, you have to use your best judgment. Of course experience comes in handy, you need to connect with a CPA, an accountant who really is into it, they understand the regulations, because you don't want to be caught unaware and you get notices in your mail of penalties interest relating to how you're calculating all those things. And they don't agree with those deductions. And they levy all those penalties and interest. So this not this guidance really helps taxpayers who have to file the extension or file the return on the extension or file to return but not claim those expenses which they have used.  They don't need to go ahead and manned the returns for this one.

Bitcoin & other virtual currencies have got a beating today, they've dropped at least 30 to 35%. Bitcoin has been trading at 30 around I think $37,000, something like that. And dogecoin is around 32 cents. I don't know why people deal in those currencies. And those virtual currencies just are really very speculative. And that comes in that they go up and come down at speed of the brain, or maybe faster than a rocket. I don't know how this paper describes how people manage those investments. But I've been following a story of coming down by 2030 to 25%. This is normal in a democratic president taking control of this country, which is what we have seen. So any questions? You can call the studio lines.