Tax News

The IRS may adjust interest rates for various purposes at various times. For example, the rates for overpayments and underpayments of income tax are adjusted quarterly. Interest rates for Q4 in 201...

Anyone who’s dealt with the IRS knows it can be a hassle. For some, however, it can be downright problematic. One couple claimed that the IRS’s continued collection activities following their fili...

After the Tax Cuts and Jobs Act of 2017 put a $10,000 cap on the itemized deduction (starting in 2018) for state and local taxes ($5,000 for married persons filing separately), some states created or ...

The IRS announced that it was using a new format for tax return transcripts to better protect taxpayer’s personal information (IR-2018-171, 8/22/18). Starting September 23, 2018, Get Transcript Onli...

In 2014, the IRS created the Annual Filing Season Program for voluntary education and testing of unenrolled tax return preparers (Rev. Proc. 2014-42). Those completing the program gain a limited right...

A taxpayer can claim the premium tax credit for assistance in paying for health coverage purchased through a government Marketplace. To be eligible, household income must be no more than 400% of the f...

Ordinarily, yearly contributions to ABLE accounts are capped at the annual gift tax exclusion ($15,000 in 2018). The Tax Cuts and Jobs Act temporarily increased the contribution limit. For 2018 throug...

In 2016, the U.S. Treasury created the Hardest Hit Fund (HHF) program to provide certain homeowners with assistance designed to help them keep their homes. States set up and administer the program, wh...

If you buy an electric drive car, you may qualify for a tax credit of up to $7,500. However, the credit is reduced once the manufacturer has sold more than 200,000 cars in the U.S. Tesla reported that...

To claim a home office deduction, space must be used regularly and exclusively for business. There are two exceptions to exclusive use: day care businesses and storage of inventory or product samples ...

If a taxpayer files a fraudulent tax return, both civil and criminal penalties can result. The civil penalty is 75% of the underpayment attributable to the fraud (Code Sec. 6663). But if a fraud resul...

If you have a plan loan outstanding and take a distribution that’s partially used to pay off the loan, are you taxed on the gross amount or the net amount (gross amount minus loan repayment)? That w...

National Taxpayer Advocate Nina Olson’s mid-year report lays out the issues that she plans to address during the fiscal year ending September 30, 2019 (https://taxpayeradvocate.irs.gov/reports/fy-20...

If you want to lose weight, you may be able to take a medical expense deduction for certain costs. Remember that for 2018, medical expenses in excess of 7.5% of adjusted gross income are deductible as...

If you run your business through an S corporation and it produces losses, you can deduct them on your personal return only to the extent of your basis in the S corporation’s stock and debt. When it ...

The U.S. Supreme Court has reversed a position it has held for more than 25 years and likely it will hit your pocketbook. Here’s what the case is about and how it may affect you. In 1992, the Cou...

The IRS may adjust interest rates for various purposes at various times. For example, the rates for overpayments and underpayments of tax are adjusted quarterly. Interest rates for Q3 in 2018. The ...

If you receive a letter in the mail from the IRS that’s marked “CP 2000,” it isn’t an audit notice. The IRS sends it because the Service has identified that the information on your return does...

A mother ran a consulting business that provided services to various federal agencies through contract labor. She had two children in college, and she paid for their tuition and related education cost...

Recently, the IRS confirmed that the contribution limits for 2018, which were announced in 2017, are unchanged for the year, despite the requirement in the Tax Cuts and Jobs Act that the IRS refigure ...