Is it possible to save too much?

The IRS is working to increase its audit rates

The IRS is working to increase its audit rates for higher earners https://cnb.cx/3NO75Qy

Determination Letters are going electronic

Employers must soon electronically submit a form to the IRS. Form 5300 (Application for Determination for Employee Benefit Plan) is filed to request a determination letter from the IRS for the initial qualification of a defined benefit or a defined contribution plan. Beginning June 1, 2022, Form 5300 must be submitted electronically here: https://bit.ly/3NOpPj1. The […]

Report on IRS handling of credits

As part of a series of COVID-19-related audits, the Treasury Inspector General for Tax Administration (TIGTA) has completed its evaluation of how the IRS handled advance premium tax credit (APTC) issues. TIGTA has found that the IRS “took immediate steps to remove excess APTC repayment” from 2020 tax returns. But it also identified 30,231 taxpayers […]

Refund available for Missouri Gas Tax Increase

Missouri sets up refunds of gas tax increase – The Center Square https://bit.ly/3mbCfWq

updated “Where’s My Refund” tool

Recently, the IRS updated its “Where’s My Refund” tool. Now taxpayers can check the status of current and two previous years’ refunds, including expected refund issuance dates. Updates for 2021 refunds are available within 24 hours of e-filing and four days of e-filing 2019 and 2020 returns. To access the tool, you’ll need your Social […]

Electric vehicle tax credit

The IRS has added more electric vehicles to its list of those eligible for a federal tax credit. The tax code provides a credit (of up to $7,500) to purchasers of qualified plug-in electric-drive passenger vehicles and light trucks. The credit phases out over four calendar quarters, beginning when a manufacturer has sold at least […]

Partners may have to report more income on tax returns than they receive in cash

Are you a partner in a business? You may have come across a situation that’s puzzling. In a given year, you may be taxed on more partnership income than was distributed to you from the partnership in which you’re a partner. Why does this happen? It’s due to the way partnerships and partners are taxed. […]

Federal budget deficit

The federal budget deficit may be in for a rollercoaster ride if the Congressional Budget Office’s (CBO’s) budget forecast is correct. The CBO said the deficit is expected to shrink to $1 trillion this year, down from $2.8 trillion in 2021, then climb sharply in the coming years. The annual shortfall is forecasted to average […]

Personal residence sale exclusion

It’s nearly summer, a time when many people sell their homes. That’s why the IRS has issued a few reminders. Home sellers may qualify to exclude from income all or part of any gain from the sale of their main home on their tax return. To enjoy the full exclusion, taxpayers must meet the ownership […]