Tax News

For the second quarter of 2019 (April 1 through June 30, 2019), the IRS interest rate on individual tax refunds and tax underpayments is remaining at 6% (Rev. Rul. 2019-5). This is the same rate that ...

The IRS has responded to public pressure by expanding estimated tax relief for 2018. We earlier reported that in recognition of the extensive changes brought by the Tax Cuts and Jobs Act, the IRS w...

The Tax Cuts and Jobs Act set bonus depreciation for passenger automobiles at 100% (previously it was 50%), which translates into an additional $8,000 write-off for the year they are purchased and pla...

Identity theft of an individual’s personal information can enable a thief to erroneously obtain a taxpayer’s refund and cause delays in the processing of a legitimate tax return. Several years ago...

In her 2018 annual report to Congress, National Taxpayer Advocate Nina E. Olson described the challenges to the IRS resulting from the 35-day government shutdown and recommended additional multi-year ...

When the IRS executed a search warrant at the home of “plaintiffs,” agents seized 364 boxes of rolled $1 presidential coins, each containing 1,000 coins. The armored truck company that transported...

Transfers from one spouse to another related pursuant to a divorce or separation agreement are tax-free transfers. The transferring spouse does not pay tax on any gain; the transferee-spouse takes ove...

A couple bought a home but wanted to demolish it and rebuild on the same property. Instead of simply tearing it down, they arranged with a charity to “deconstruct” it in order to give the charity�...

Several years ago, the U.S. Supreme Court said heirs who inherited IRAs could not protect these assets under the federal Bankruptcy Code when they filed for bankruptcy (Clark v. Rameker, S.Ct., 573 U....

Because of the number of changes in the rules for 2018 triggered by the Tax Cuts and Jobs Act, the IRS is waiving estimated tax penalties for certain individuals (IR-2019-03, 1/16/19). Usually, there�...

While the Tax Cuts and Jobs Act repealed the individual mandate penalty as of January 1, 2019, the requirement for individuals and their dependents to have minimum essential health coverage unless exe...

The IRS has announced the standard mileage rates for certain types of driving in 2019 (Notice 2019-02). Beginning on January 1, 2019, the standard mileage rates for the use of a car, van, pickup or pa...

Unless a taxpayer can demonstrate a profit motive, an activity is treated as a hobby. This means all income must be reported, but for 2018 through 2025, no deductions can be taken. The bar to deductio...

Life’s ups and downs can disrupt things for taxpayers, but the Tax Court has made it clear that it’s no excuse for not filing tax returns. Take the following case where a taxpayer who worked in th...

The interest rates on overpayments and underpayments are increased slightly for the first quarter of 2019, as compared with the rates for the prior quarter (Rev Rul. 2018-32). The rates are: Nonco...

Following the widespread losses of investments with Bernard Madoff, the IRS issued a safe harbor (Rev. Proc. 2009-20) to enable investors to take losses even though some recovery was possible. One cou...

If you use your vehicle for business driving, you have a choice in how to handle your expenses. You can deduct your actual costs, including an allowance for depreciation (up to certain dollar limits) ...

If you conduct an activity without a profit motive you can prove, then the hobby loss rule applies. Under the Tax Cuts and Jobs Act, you have to report all of your income (nothing has been changed her...

More than 62 million Social Security beneficiaries will receive a cost-of-living adjustment (COLA) of 2.8% starting with the December 2018 benefits, which are payable in January 2019. This COLA adjust...

A couple got divorced in Nevada in 2011. Their agreement provided for tax-free transfers of property as well as spousal support. One spouse made payments on the other’s Sallie Mae student loans and ...