Tax News

April 28, 2023 2:42 am

An irrevocable grantor trust can be used for a variety of personal and tax reasons. The grantor is taxable on the income from the trust during his or her life. Upon death, the assets of the trust beco...

April 28, 2023 2:41 am

Individuals can obtain help paying health coverage purchased through a government exchange via the premium tax credit. When an individual applies for coverage before the start of the year, it’s not ...

April 28, 2023 2:41 am

Prior to 2018, individuals who sustained casualty losses to their homes and other personal-use property could take an itemized casualty loss deduction. From 2018 through 2025, losses are allowed only ...

April 28, 2023 2:40 am

In 2017, a taxpayer made 173 separate trips to Goodwill and the Salvation Army to donate used clothing that he claimed as in “good used condition.” He got a receipt for each donation; each was und...

April 10, 2023 1:08 am

Late in March 2023, the IRS began announcing the annual list of 12 tax scams and schemes that taxpayers should avoid during tax season and throughout the year. The scams noted this year are not dramat...

April 4, 2023 10:15 pm

If you sold personal-use property, such as tickets to a sporting event, used designer clothing, or used home furniture, on an online platform, such as eBay or Etsy, and accepted payment through a cred...

April 4, 2023 10:14 pm

To be able to exclude foreign earned income and to deduct or exclude foreign housing costs, an individual must be a bona fide resident of a foreign country for an uninterrupted period that includes an...

April 4, 2023 10:11 pm

Whether expenses of an activity are deductible depends on whether it is conducted for profit or is merely a hobby. If there is a profit motive, then income is reported but can be offset by deductible ...

April 4, 2023 10:10 pm

The IRS posts FAQs to explain when costs can and cannot be reimbursed through health plans (https://www.irs.gov/individuals/frequently-asked-questions-about-medical-expenses-related-to-nutrition-welln...

April 4, 2023 10:09 pm

It’s an old saying that timing is everything and that’s what some taxpayers learned in a recent case. A business owner wanted to retire and dispose of his stock in his family’s closely-held corp...

April 4, 2023 10:08 pm

The failure to file an annual Report of Foreign Bank and Financial Assets (an FBAR report) for foreign bank accounts can result in a maximum penalty of $10,000 for nonwillful violations. Lower courts ...

February 28, 2023 8:39 pm

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...

February 28, 2023 8:38 pm

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...

February 28, 2023 8:37 pm

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...

February 28, 2023 8:36 pm

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...

February 28, 2023 8:34 pm

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...

February 2, 2023 1:57 am

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...

February 2, 2023 1:56 am

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...

February 2, 2023 1:56 am

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...

February 2, 2023 1:55 am

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 ...

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Tax Glossary

Standard mileage rate

A fixed rate allowed by the IRS for business auto expenses in place of deducting actual expenses.

More terms