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Amber's avatar

Not a huge fan of the pre-emptive authorization filing because the CAF units are already beyond capacity and most of the notices are going to require a call anyway. I prepare the authorization forms (so they're ready for a quick signature in the event of a notice) and offer a notice assurance program for an additional fee. I encourage clients to opt in by reminding them that notice assurance is only slightly more than what I would charge them JUST to file the authorizations. If they don't opt in, they get charged for filing authorizations and for handling the notice.

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Thomas A. Gorczynski's avatar

Clients disregard notices or bring them late - so getting the information early to me is key. I think having a 8821 can be useful to certain clients; if CAF is backlogged, that's the IRS's problem, as the taxpayer has the right to give that authorization to someone.

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Stephanie Anderson's avatar

Excellent article, thank you!

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Jim McClaflin's avatar

For a COVID EIDL loan, not the loan advance, but the "standard" loan, does a sole prop owner's draws count as allowable use of the loan funds? I know that if they were paid a salary in corp it would but I'm not seeing anthing authoritative on Sole Props.

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Thomas A. Gorczynski's avatar

Hi Jim, this isn't a tax question, so I really can't comment on it. I recommend talking to the lender.

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Cyril L NeSmith EA, CTP, NTPI's avatar

Great PRE-planning info for tax season!!

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