Tax News

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 ...

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...

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...

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 ...

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...

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...

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...

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 ...

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...

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...

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 ...

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...

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 ...

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...

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 ...

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...

If you purchased health insurance through a government exchange, you may be eligible for the premium tax credit. In fact, you may even have received it on an advance basis to help pay premiums monthly...

The SECURE Act changed some of the rules for required minimum distributions (RMDs). It increased the starting age to 72 for those born after June 30, 1949. It effectively killed the “stretch IRA” ...

If you fail to submit your return on time—by the due date or the extended due date if you request an extension—you are subject to a late filing penalty. And if you fail to pay the taxes due by the...

Emergency financial aid grants made by a federal agency, state, Indian tribe, higher education institution or scholarship-granting organization (including a tribal organization) to a student because o...