Global Minimum Tax criticized by House Ways and Means Committee

In a Feb. 10 letter to the Organization for Economic Co-operation and Development (OECD), U.S. House Ways and Means Committee Chair Jason Smith (R-MO) criticized the OECD’s global minimum tax framework. He asserted that the Paris-based group had conducted backroom deals to “attack the United States,” and that the minimum tax would hurt U.S. jobs […]

Direct Deposit now available on Amended Tax returns

If you file an amended tax return electronically, you can now get a direct deposit refund. The IRS announced that taxpayers e-filing Form 1040-X, Amended U.S. Individual Income Tax Return, have this option. Previously, taxpayers who filed Form 1040-X had to wait for a paper check refund. Taxpayers may still submit a paper Form 1040-X […]

Fair Tax Act Proposed

A Republican-sponsored bill, the Fair Tax Act, was recently introduced in the U.S. House of Representatives. It calls for eliminating most federal taxes (including individual and corporate income, capital gains, payroll, and estate taxes) as well as getting rid of the IRS. The taxes would be replaced with a 23% federal sales tax on goods […]

Do you owe federal taxes on relief checks? Not if you live in these 16 states

Do you owe federal taxes on relief checks? Not if you live in these 16 states – CNBC https://bit.ly/3jWgAUF

GAO reports on IRS technology

The Government Accountability Office (GAO) in a report rebukes the IRS for problematic IT modernization and cloud computing efforts. The GAO analyzed IRS legacy applications, software, and hardware data and assessed plans for 21 modernization initiatives. The GAO found that the IRS’s legacy IT environment includes applications that range from 25 to 64 years in […]

IRS evaluating taxability of state special tax refunds

Early birds: Hold up! The IRS is asking some taxpayers to wait a bit longer before they finalize and file their 2022 federal income tax returns. That’s because the IRS is still evaluating the taxability of special tax refunds and payments made last year by approximately 20 states to their residents. Some payments may be […]

Educators can still deduct $300 of out of pocket classroom costs

Educators: As you file your 2022 taxes, be aware there’s a tax deduction just for you. Even if you take the standard deduction, an eligible educator can deduct up to $300 in unreimbursed, out-of-pocket expenses. If you’re married filing jointly and both spouses are eligible, you may deduct up to $300 each. Based on inflation, […]

Is a IRS audit in your future?

More IRS audits are ahead, but for whom? That is the question asked by U.S. House Ways and Means Committee Chair Jason Smith (R-MO) in a letter to the Acting IRS Commissioner. Smith requested to see a plan for allocation of the $80 billion provided to the IRS by the Inflation Reduction Act. He noted […]

AICPA recommends changes to tax code

The American Institute of Certified Public Accountants (AICPA) is recommending more than 60 changes to the current tax code. In a recent letter to the chairs and ranking members of the Senate Finance and House Ways and Means Committees, the AICPA raised “noncontroversial” issues that its members believe should be addressed in the interest of […]

Billionaire minimum tax proposed

President Biden renewed a proposal during the Feb. 7 State of the Union address to impose a 20% minimum tax on billionaires. In a typical year, the average billionaire pays only 8% in taxes, according to a White House fact sheet. This minimum tax would help ensure that the wealthiest Americans don’t pay a tax […]