Tax News

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 ...

A domestic spending package, called the Further Consolidated Appropriations Act, 2020 (H.R. 1865) which was signed into law on December 20, 2019, makes $426 billion in tax cuts. Here is a brief overvi...

Currently, the estate tax exemption is large enough ($11.4 million for decedents dying in 2019; $11.5 million for those dying in 2020) to protect most estates from having to pay any federal estate tax...

The basic Part B premium amount for 2020 is $144.60 per month. The Part D premium for drug coverage in 2020 ranges from $13 to $83 per month (depending on the drug plan selected). However, high-income...

A home office deduction can be claimed only if space is used regularly and exclusively for business. But can a taxpayer who has two businesses claim a home office deduction for the same space? In a...

Homeowners who meet ownership and use tests can exclude gain on the sale of a principal residence up to $250,000 ($500,000 on a joint return). Taxpayers who hold property for investment can defer gain...

Each year, the IRS can adjust various amounts used to figure contributions, benefits, deductions, and credits related to qualified retirement plans and IRAs. The IRS has now done so for 2020 amounts (...