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.
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.
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.
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.
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.
Excellent article, thank you!
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.
Hi Jim, this isn't a tax question, so I really can't comment on it. I recommend talking to the lender.
Great PRE-planning info for tax season!!