Tax News

The IRS announced in late August 2022 that it is providing relief from failure-to-file penalties for tax years 2019 and 2020 for returns (Form 1040 or 1040-SR) filed by September 30, 2022 (Notice 2022...

The SECURE Act introduced a new 10-year rule for inherited retirement accounts where the employee or IRA owner died after 2019. Proposed regulations on required minimum distributions (RMDs) for inheri...

Seniors and others receiving Social Security benefits and Medicare health coverage have something to celebrate in the coming year. The approximately 65 million Social Security beneficiaries will recei...

Each year, the IRS is required to adjust various amounts used to figure contributions, benefits, deductions, and credits related to qualified retirement plans and IRAs due to cost-of-living increases....

The IRS adjusts more than five dozen items annually for inflation. Due to significant inflation over the past year, the tax brackets and many items have been increased—sometimes dramatically—for 2...

The Inflation Reduction Act of 2022 changed the rules for electric vehicles. Most of the changes apply starting in 2023. However, at least a new requirement became effective on August 16, 2022, the da...

The IRS interest rates on overpayments and underpayments for the fourth quarter of 2022 are one percentage point higher than in the third quarter (Rev. Rul. 2022-15). This is the third interest rate i...

A massive new tax law costing $739 billion was enacted to promote green energy, aid Medicare recipients, and increase funding for the IRS (P.L. 117-169). It was signed into law on August 16, 2022. To ...

Plug-in electric powered vehicles manufactured by Toyota reached the 200,000 manufacturing cap in June of this year. As a result, the maximum $7,500 credit for the purchase of a Toyota plug-in electri...

Withholding from employees’ paychecks—income taxes and FICA—is referred to as trust fund taxes because the employer is holding them in trust for employees until deposited with the U.S. Treasury....

Estates of decedents that have not used up their exemption amount ($12.06 million for decedents dying in 2022) may make a portability election, called the deceased spousal unused exclusion (DSUE). To ...

The National Taxpayer Advocate Erin M. Collins released to Congress a mid-year report noting the good things and the bad things about IRS activities as well as to make recommendations for improvement ...

The IRS has been using various technologies to improve customer service, one of which is voice bots. To date, voice bots have answered over 3 million taxpayer calls. Now taxpayers can use voice bots t...

If you have an outstanding demand loan with an interest rate that’s below the applicable federal rate (AFR), you have interest income if you’re the lender or interest expense if you’re the borro...

Due to the spike in the price of gasoline used by vehicles, the IRS increased its standard mileage rate to 62.5 cents per mile for business driving from July 1 through December 31, 2022 (up from 58.5 ...

A spouse who was subject to abuse and physical intimidation by her former husband was entitled to equitable innocent spouse relief (Jan Pocock, TC Memo 2022-55). She met the conditions for a streamlin...

The IRS released data on 2020 individual income tax returns (Spring 2022 Statistics of Income Bulletin). There were 164.2 million Forms 1040 and 1040-SR filed for 2020, up from 159.7 million in the pr...

Each year, the IRS releases a list of tax scams as a warning to taxpayers to beware. This year’s list has many of the same scams reported in previous years. There are some new additions (IR-2022-113...

Between 1981 and 2002, an individual took out a series of federal student loans to finance his education. As of December 5, 2018, they were in default in an amount exceeding $170,000. He was informed ...

You can check the status of a tax refund on the IRS website using the tool called Where’s My Refund? It shows when your return has been received, when the refund has been approved, and when it has b...