IRS will rebate late filing penalties

IRS to refund penalties for millions of taxpayers who filed late https://fxn.ws/3PP7AKU

More on the Inflation Reduction Act

The Inflation Reduction Act was signed into law by President Biden on Aug. 16. The bill comes with a price tag of $740 billion and imposes a new 15% minimum tax on large, profitable corporations. It also adds a 1% excise tax on stock buybacks. Other revenue would come from more enforcement of tax compliance […]

Inflation Reduction act won’t reduce inflation but will reduce deficit

A Penn Wharton Budget Model report is weighing in on the Inflation Reduction Act. It says the final version of the bill isn’t expected to increase inflation. However, the bill probably won’t reduce inflation soon, either. It will likely take 10 years for the legislation to lower non-interest cumulative deficits by $264 billion. Taxes on […]

How to Think About IRS Tax Enforcement Provisions in the Inflation Reduction Act

How to Think About IRS Tax Enforcement Provisions in the Inflation Reduction Act https://bit.ly/3Trs7Iz

Increase in IRS interest rates

Even IRS penalties are affected by inflation. The IRS just announced that fourth quarter 2022 interest rates for tax overpayment and underpayment will increase by 1%. The interest rate for overpayments will be 6% for most taxpayers and 5% for corporations. If a corporation overpays by more than $10,000, the rate will be 3.5%. The […]

CBO scores budget deficit

The Congressional Budget Office (CBO) estimated that the federal budget deficit for the first 10 months of fiscal year 2022 was $727 billion, with an expectation that “the total deficit for 2022 will be close to the $1 trillion estimate” it published in May. “That deficit projection doesn’t include costs for a possible executive action […]

Inflation Reduction revenue target

The IRA will raise revenue through a new 15% minimum tax on large, profitable corporations and a 1% excise tax on stock buybacks. The bill is intended to reduce the U.S. deficit by about $300 billion. Other revenue would come from stricter enforcement of tax compliance by the IRS. The IRA also includes significant provisions […]

Receive an IRS letter?

Have you ever received a letter from the IRS? Some people may get a little panicky from unexpected IRS attention. They might even tuck an unopened letter into a drawer, hoping it will go away. But not all IRS correspondence is scary. It might be a notice of a change to your account. Generally, IRS […]

Crowdfunding, is it taxable?

Is income from crowdfunding taxable? It’s a popular way to raise money for emergencies, charities, businesses and more. But the funds could be taxable. Under federal law, gross income is income from all sources, unless it’s excluded by law, such as a gift. For crowdfunded donations to qualify as gifts, certain conditions must be met. […]

Missouri Storm Relief

After extending tax filing and payment deadlines for Kentucky victims of recent storms, the IRS has now offered the same relief to qualified Missouri residents and businesses. For regular tax deadlines between July 26 and Nov. 15, the extended deadline is Nov. 15. This includes returns that received a 2021 tax return extension to Oct. […]