Tax News

December 1, 2022 2:03 am

The latest IRS Statistics of Income Bulletin (Publication 1304 (Rev. 11-2022) (irs.gov)) show that 164.4 million individual income tax returns were filed for 2020, or 4.2% more than in the previous ta...

December 1, 2022 2:02 am

An individual who takes a distribution from a traditional IRA has 60 days to roll it over to another IRA or qualified retirement plan. If the rollover is not completed in time, the distribution is ful...

December 1, 2022 2:01 am

Relatives may receive Medicaid payments for the care of a disabled child in the caregiver’s home. Previously, the IRS said such payments are treated for income tax purposes as “difficulty of care ...

October 31, 2022 12:44 am

Taxpayers with adjusted gross income of $73,000 or less can use Free File to prepare and file their 2021 federal income tax return. Usually, Free File remains open until the extended due date…Octobe...

October 31, 2022 12:44 am

The IRS announced in late August 2022 that it is providing relief from failure-to-file penalties for tax years 2019 and 2020 for returns (Form 1040 or 1040-SR) filed by September 30, 2022 (Notice 2022...

October 31, 2022 12:43 am

The SECURE Act introduced a new 10-year rule for inherited retirement accounts where the employee or IRA owner died after 2019. Proposed regulations on required minimum distributions (RMDs) for inheri...

October 31, 2022 12:42 am

Seniors and others receiving Social Security benefits and Medicare health coverage have something to celebrate in the coming year. The approximately 65 million Social Security beneficiaries will recei...

October 31, 2022 12:41 am

Each year, the IRS is required to adjust various amounts used to figure contributions, benefits, deductions, and credits related to qualified retirement plans and IRAs due to cost-of-living increases....

October 31, 2022 12:39 am

The IRS adjusts more than five dozen items annually for inflation. Due to significant inflation over the past year, the tax brackets and many items have been increased—sometimes dramatically—for 2...

September 1, 2022 3:48 am

The Inflation Reduction Act of 2022 changed the rules for electric vehicles. Most of the changes apply starting in 2023. However, at least a new requirement became effective on August 16, 2022, the da...

September 1, 2022 3:47 am

The IRS interest rates on overpayments and underpayments for the fourth quarter of 2022 are one percentage point higher than in the third quarter (Rev. Rul. 2022-15). This is the third interest rate i...

September 1, 2022 3:46 am

A massive new tax law costing $739 billion was enacted to promote green energy, aid Medicare recipients, and increase funding for the IRS (P.L. 117-169). It was signed into law on August 16, 2022. To ...

July 29, 2022 12:51 am

Plug-in electric powered vehicles manufactured by Toyota reached the 200,000 manufacturing cap in June of this year. As a result, the maximum $7,500 credit for the purchase of a Toyota plug-in electri...

July 29, 2022 12:50 am

Withholding from employees’ paychecks—income taxes and FICA—is referred to as trust fund taxes because the employer is holding them in trust for employees until deposited with the U.S. Treasury....

July 29, 2022 12:50 am

Estates of decedents that have not used up their exemption amount ($12.06 million for decedents dying in 2022) may make a portability election, called the deceased spousal unused exclusion (DSUE). To ...

June 30, 2022 12:26 am

The National Taxpayer Advocate Erin M. Collins released to Congress a mid-year report noting the good things and the bad things about IRS activities as well as to make recommendations for improvement ...

June 30, 2022 12:25 am

The IRS has been using various technologies to improve customer service, one of which is voice bots. To date, voice bots have answered over 3 million taxpayer calls. Now taxpayers can use voice bots t...

June 30, 2022 12:25 am

If you have an outstanding demand loan with an interest rate that’s below the applicable federal rate (AFR), you have interest income if you’re the lender or interest expense if you’re the borro...

June 30, 2022 12:24 am

Due to the spike in the price of gasoline used by vehicles, the IRS increased its standard mileage rate to 62.5 cents per mile for business driving from July 1 through December 31, 2022 (up from 58.5 ...

June 30, 2022 12:24 am

A spouse who was subject to abuse and physical intimidation by her former husband was entitled to equitable innocent spouse relief (Jan Pocock, TC Memo 2022-55). She met the conditions for a streamlin...

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Tax Glossary

Tax preference items

Items that may subject a taxpayer to the alternative minimum tax (AMT).

More terms