Manzi, Pino & Company, P.C.


 1895 Walt Whitman Road #5, Melville, NY 11747

Phone: 631-420-5620

December 2020

December 2020 Question and Answer

Question and Answer

Question
Leslie relocated in 2020 for a job opportunity. Her new employer didn’t provide any financial assistance for the move. Can she deduct any of her moving expenses from her tax return?


Answer
Unfortunately, due to the Tax Cuts and Jobs Act, moving expenses are no longer tax deductible. The only exception is for members of the military. If Leslie is an active duty armed services member and moved as part of a permanent change of station, then some of her unreimbursed moving expenses are deductible. She can deduct reasonable costs to move her household goods and personal belongings along with travel expenses to her new home.


Question
I received a CP-501 notice from the IRS claiming I have a balance due, but I don’t agree. What should I do?


Answer
Since the CP-501 notice is the first notice you will receive about a past due amount, you’ll want to call the IRS right away using the phone number provided on the notice. But before you call, do your research and have all the information available to explain why you believe there is a mistake. Although talking with the IRS may seem scary, don’t ignore the notice. Interest and penalties may continue to be charged and they have the right to place a lien on your property.


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