The race to fund the federal government and avert a Dec. 16 shutdown is on! Or not. Differences between Democrats and Republicans over spending amounts and policy wavers have brought budget negotiations to a near-standstill. Democrats back an expansion of the Child Tax Credit and are trying to entice Republicans with business tax breaks, including […]

The U.S. Treasury Department recently conducted another roundtable discussion on how to improve accessibility and service quality at the IRS. These series of discussions are intended to help the IRS develop a strategic plan to modernize tax administration. Specifically, the conversation focused on the challenges underserved taxpayers face when trying to communicate with the IRS. […]

A bipartisan group of lawmakers have reintroduced legislation that allows individuals with felony drug convictions the right to claim the American Opportunity Tax Credit (AOTC). Under current law, students with such drug convictions are permanently barred from claiming the AOTC for higher education. The Eliminating Discrimination and Creating Corridors to Expand Student Success (ED ACCESS) […]

The IRS is providing disaster tax relief to victims of severe storms and flooding in St. Clair County, Illinois, between July 25, 2022 and July 28, 2022. Affected taxpayers also include those who were there as part of official relief efforts or visiting the area and were killed or injured by the disaster. The IRS […]

The U.S. Supreme Court has refused a request by appliance manufacturer, Whirlpool to review a long-standing case. At issue is the treatment of Whirlpool’s 2009 earnings from its Luxembourg controlled foreign corporation, and whether branch rules applied to the income or U.S. Treasury regulations that taxpayers have relied upon for decades. In a tax blog, […]

State officials in talks about how to prevent personal property tax spikes – KSDK.com https://bit.ly/3UmP3b1 

Spouses who file joint federal tax returns are both generally liable for the tax owed. But joint filers may seek “innocent spouse” relief. In one case, a man received innocent spouse relief regarding taxable proceeds that his ex-wife received in settlement of an employment discrimination lawsuit. Although he had knowledge of the settlement proceeds, he […]

The Security Summit, a partnership between the IRS, state tax agencies and tax professionals, is warning taxpayers to “take extra steps” to protect their financial and tax information from increasingly sophisticated fraud schemes. The group is pursuing several initiatives during its National Tax Security Awareness Week (Nov. 28 to Dec. 2, 2022). For example, it’s […]