e-Postcard files need to use authentication

Tax-exempt organizations take note: Form 990-N (e-Postcard) filers need to use the IRS’s new authentication platform. In general, nonprofits are eligible to file the annual information return 990-N if they have annual gross receipts of $50,000 or less. Regardless of how they previously logged in, these nonprofits now have three options: 1) Sign in with […]

IRA causes form revisions

The Inflation Reduction Act (IRA) can be expected to require a few tax form adjustments. It appears that the IRS may revise Forms 941, 6755, 8794 and possibly others. Employers use these forms to claim the qualified small-business payroll tax credit for boosting research activities, which increased under the IRA. Section 13902 of the IRA […]

IRA provides for IRS funding

The Inflation Reduction Act (IRA) provides about $80 billion over 10 years to fund the IRS and improve its “tax enforcement activities” and technology. The funds will be available to the IRS through Sept. 30, 2031. With the funds, the IRS plans to hire nearly 87,000 personnel to help with tax-law enforcement efforts to further […]

Guidance issued for Clean Vehicle Credit

The U.S. government has begun issuing guidance regarding the Clean Vehicle Credit in the new Inflation Reduction Act (IRA). The IRA introduced a $4,000 tax credit for the purchase of used EVs and updated the $7,500 credit for new ones, with major changes. To qualify for the credit, there are now new requirements, including caps […]

Business identity theft

Is the IRS successfully combatting business identity theft? The Treasury Inspector General for Tax Administration (TIGTA) recently took a look. In an audit, TIGTA reported that progress is being made by using filters to detect potential fraud, plus conducting prompt reviews of business tax returns with high-dollar refunds. However, it added: “TIGTA continues to believe […]

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 […]