Tax News

The IRS has announced that disaster-area taxpayers in most of California and parts of Georgia and Alabama now have until October 16, 2023, to file various federal individual and business tax returns a...

If you receive certain notices from the IRS requesting additional information, you may now be able to update documents to the IRS instead of mailing them in (IR-2023-29). If you receive one of the not...

During the pandemic, a number of states made certain COVID-19-related payments to residents and the federal tax treatment of these special payments had been unclear. The IRS has now clarified that the...

Married persons filing jointly are jointly and severally liable for the tax, penalties, and interest on their returns. However, one spouse can be relieved of liability by qualifying as an innocent spo...

The IRS interest rates on overpayments and underpayments for the second quarter of 2023 are the same as the rates for the first quarter of 2023 (Rev. Rul. 2023-4). The rates beginning April 1, 2023, a...

Distributions from a qualified retirement plan and IRA before age 59½ are subject to a 10% penalty (in addition to the regular tax), unless a penalty exception applies. One exception is a distributio...

One investor who bought a cryptocurrency at $1 per unit and it declined to a penny a unit by the end of the year. He asked the IRS whether he could deduct a loss due to worthlessness or abandonment an...

When property valued at over $5,000 is donated to charity, a qualified appraisal is required in order to take a deduction. No appraisal is required for the donation of publicly-traded securities. Does...

The National Taxpayer Advocate is required to issue an annual report to Congress listing problems and concerns, and how to create a better experience for taxpayers. The 2022 Annual Report to Congress ...

An American opportunity credit of 100% of the qualified tuition and other related expenses up to $2,000, plus 25% of such costs of the next $2,000, for a total credit of $2,500. The credit applies for...

The premium tax credit is payable on an advanced basis to defray the cost of health coverage purchased through a government exchange. However, if more of the credit is received than the amount to whic...

If you drive your vehicle for certain purposes, you may deduct the actual costs related to business driving or use an IRS-set mileage rate. The IRS standard mileage rates for 2023 (Notice 2023-03) are...

The IRS interest rates on overpayments and underpayments for the first quarter of 2023 are one percentage point higher than in the fourth quarter of 2022 (Rev. Rul. 2022-23). The interest rates have i...

Withholding for federal (and where applicable) state income taxes on wages is mandatory, but you can tell employers whether you need additional withholding. Consider filing a new Form W-4 for 2023. ...

Credit card processors and other third-party settlement organizations (e.g., PayPal) were supposed to report transactions in 2022 exceeding $600 on Form 1099-K. However, the IRS has postponed this thr...

A $1.72 trillion omnibus spending bill, which was signed into law on December 29, 2022, funds the federal government through the end of its 2023 fiscal year ending September 30, 2023. Tax-wise the cha...

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...

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...

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 ...

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...