Tax News

When estate and non-grantor trusts have deductions that exceed their income, these excess deductions are passed through to beneficiaries. However, the Tax Cuts and Jobs Act bars individuals from claim...

If you are an undergraduate and graduate student who received an emergency financial aid grant as a result of experiencing unexpected expenses or unmet financial need as a result of the COVID-19 pande...

If you received your Economic Impact Payment, keep in mind that it’s tax free. You do not have to use the money for any particular purpose. If you haven’t received your payment, the IRS has a p...

An offer in compromise (OIC) is an agreement that a taxpayer can reach with the IRS to settle an outstanding tax debt at less than the full amount under special circumstances. The taxpayer must show t...

Having coverage through high deductible health plan (HDHP) is a prerequisite for contributing to a health savings account (HSA). Typically, HDHPs require you to exhaust the policy’s deductible befor...

Tax returns, Tax Court petitions, and other time-sensitive documents are treated as having been timely filed with the government if they are mailed on time (“timely mailed timely filed rule”). Und...

A person’s failure "to pay any tax" after the government’s demand for payment creates "a lien in favor of the United States upon all property and rights to property, whether real or personal, belo...

The interest rates on overpayments and underpayments for the second quarter of 2020 are unchanged from the first quarter rates (Rev Rul. 2020-7). The rates are: Noncorporate overpayments and under...

Congress and the IRS have been busy on changing tax rules to help individuals and businesses get through the economic disaster triggered by COVID-19. The changes impact 2019 returns, as well as return...

The IRS has announced a variety of measures designed to bring taxpayers required to file returns but who failed to do so into compliance (Fact Sheet 2020-02). The Service’s efforts promote voluntary...

There is confusion about the tax treatment of inherited IRAs. It is true that the inheritance of an IRA is not a taxable event, regardless of the size of the account. An inheritable is tax free. But i...

If you own a life insurance policy and sell it, you may realize gain on the transaction. The Tax Cuts and Jobs Act (TCJA) changed the rules for determining basis used in measuring gain from such a sal...

The Tax Cuts and Jobs Act of 2017 created a new type of investment offering special tax breaks. Various locations around the country have been designated as Opportunity Zones (OZs), allowing for these...

Distributions from an IRA prior to age 59 ½ are subject to a 10% early distribution penalty. However, the penalty is waived if an exception to it applies. One exception is for disability. But, as a r...

Acting National Taxpayer Advocate Bridge Roberts released the 2019 annual report to Congress (https://taxpayeradvocate.irs.gov/2019AnnualReport). The National Taxpayer Advocate’s 2019 annual report ...

Since 2002, the IRS has partnered with private tax preparation software providers to offer eligible taxpayers a free tax preparation and e-filing option. Called Free File, this option can be used to p...

If you use a vehicle for certain driving purposes, you can deduct your costs based on your actual expenses or rely on an IRS-set mileage rate. The IRS has announced the standard mileage rates that can...

Executive Order 13765, issued in 2017, is aimed at minimizing the economic burden of the Affordable Care Act. However, the IRS has indicated that this doesn’t give the Service the authority to chang...

The interest rates on overpayments and underpayments are unchanged from the fourth quarter of 2019 (Rev Rul. 2019-28). The rates are: Noncorporate overpayments and underpayments: 5% Corporate ov...

The IRS has provided guidance on what disclosure is treated as “adequate” to avoid a 20% penalty for a substantial understatement of tax (Rev. Proc. 2019-42, updating Rev. Proc. 2019-9). Here’s ...