Tax News

June 30, 2022 12:22 am

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...

June 30, 2022 12:21 am

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...

June 30, 2022 12:19 am

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 ...

June 1, 2022 2:37 am

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...

June 1, 2022 2:36 am

The IRS interest rates on overpayments and underpayments for the third quarter of 2022 are one percentage point higher than in the second quarter (Rev. Rul. 2022-11). This is the second interest rate ...

June 1, 2022 2:36 am

Employers may have leave-based donation programs in which employees can choose to donate their unused leave time—vacation, sick, and personal days—for the use of other employees who’ve run out o...

June 1, 2022 2:35 am

Those with divorces or legal separation agreements finalized before 2019 are subject to old alimony rules. These rules allow payors to deduct payments, while recipients must report the payments as inc...

June 1, 2022 2:34 am

An offer in compromise (OIC) is an agreement between a taxpayer and the IRS that settles a taxpayer’s tax liabilities for less than the full amount owed. Taxpayers who can fully pay the liabilities ...

June 1, 2022 2:32 am

The IRS announced next year’s contribution limits for health savings accounts (HSAs), as well as requirements for high-deductible health plans (HDHPs) to which HSAs must be linked (Rev. Proc. 2022-2...

May 5, 2022 4:44 am

New York, Connecticut, Maryland, and New Jersey had challenged the constitutionality of the $10,000 cap on the itemized deduction for state and local income or sales taxes and property taxes. The stat...

May 5, 2022 4:43 am

An IRA owner named himself as beneficiary of his account. When he died, the account went into his estate of which his surviving spouse was the sole heir and sole administrator. She wanted to roll over...

May 5, 2022 4:42 am

A couple who bought a home in 2005 moved from it in 2009 due to one spouse’s medical condition. They rented out the home until it was sold in 2015, but the couple didn’t reside in the home at any ...

May 5, 2022 4:41 am

The IRS indicated in an informal ruling that costs incurred for health and wellness coaching under a health savings account, flexible spending account, or other tax-preferred account could be a qualif...

May 5, 2022 4:38 am

Employers may offer employees certain tax-free transportation fringe benefits up to set dollar limits. These can be arranged through employer payments or employee payments on a pre-tax basis (salary r...

March 30, 2022 3:38 am

High deductible health plans (HDHPs) require minimum insurance deductibles to be met before insurance coverage begins. HDHPs are a prerequisite for contributing to a health savings account (HSA). The ...

March 30, 2022 3:36 am

Passenger vehicles, including light trucks and vans, that are purchased for business and placed in service in 2022 can be depreciated only up to a set dollar amount. And if the vehicles are leased, th...

March 30, 2022 3:24 am

Usually, farmers and fishermen are only required to make one estimated tax payment if they are “qualified.” Being qualified means having two-thirds of gross income in the current or previous year ...

March 30, 2022 3:19 am

On March 4, 2022, the IRS announced the start of the Taxpayer Experience Office, which is a new office designed to focus on taxpayer transactions with the Service (IR-2022-50). The Taxpayer Experience...

March 30, 2022 3:08 am

A short sale occurs when a homeowner in financial distress sells their property for less than the amount due on the mortgage. In one case, homeowners filed for bankruptcy and when their petition was ...

March 3, 2022 11:04 pm

The IRS interest rates on underpayments and overpayments had remained unchanged since the first quarter of 2021. Starting April 1, 2022, the IRS interest rates increase by one percentage rate (Rev. Ru...

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Tax Glossary

Annualized rate

A rate for a period of less than a year computed as though for a full year.

More terms