Required Minumum Distribution from IRA

Time’s nearly up for some retirees to take a required minimum distribution (RMD) from certain retirement accounts, to avoid harsh penalties. For those who turned 72 in the last half of 2021, your first year RMD must be taken by April 1, 2022, so act fast. This applies to those with IRAs, 401(k)s and similar […]

IRS Backlog

It’s no secret that the IRS has had a huge backlog of unprocessed returns, a problem made worse by COVID-19. A recent audit by the Treasury Inspector General for Tax Administration (TIGTA) found there were 7.8 million cases in accounts management inventory as of Nov. 21, 2021, with 56.8% being over-aged. To improve service, TIGTA […]

Senate votes to Proceed

On March 23, the U.S. Senate voted to proceed with the America COMPETES Act of 2022, which the U.S. House of Representatives already passed. The proposed legislation provides grants for chipmakers and research. The semiconductor industry is pushing for a 25% investment tax credit to be added to the $50 billion bill that’s intended to […]

Crypto Reporting

Cryptocurrency and nonfungible tokens (NFTs) are far from interchangeable from a tax perspective. A lack of IRS guidance has left tax experts to speculate on the nuances of how various digital assets may be treated. NFTs are cryptographic tokens that exist on a blockchain. They can represent real world items, such as real estate or […]

Bill to Increase Retirement Savings Opportunities

The Securing a Strong Retirement Act, a bipartisan bill intended to increase retirement savings and simplify retirement plan rules, is set to receive a full vote by the U.S. House of Representatives the week of March 28. It’s often referred to as SECURE 2.0, which references the 2019 SECURE Act that made numerous retirement plan […]

Reporting Threshold Decreased

A law passed last year lowered the reporting threshold for gig workers and others who receive certain types of payments from $20,000 to $600. According to taxpayer groups and lawmakers, that change has harmed both taxpayers and the IRS. The reduced threshold may result in a deluge of Forms 1099-K from confused online sellers being […]

Crowdfunding

Using websites such as GoFundMe or Kickstarter is an easy way to raise money over the internet from a large group of people. Often referred to as “crowdfunding,” it may be used to fund business ideas, help families pay medical bills or raise money for charity. Bear in mind that the income raised by crowdfunding […]

The Employer-Provided Child Tax Credit

A recent Government Accountability Office (GAO) report confirms that the Employer-Provided Child Tax Credit can financially benefit employers and employees. The statutorily mandated review drilled down on several subjects, including the tax implications for employer-provided child care, characteristics of employers claiming the credit, challenges employers face in offering it and benefits eligible employees receive. Overall, […]

IRS update

In a March 21 speech before a tax executives convention, IRS chief Charles Rettig stated that the agency is “trending in a really good direction” in catching up on unprocessed returns. However, he warned, the agency needs more in long-term government funding if it’s going to achieve its six-year modernization plan. Despite a recent 6% […]

The voice bots are coming

The next time you contact the IRS, your call or online text might be received by a voice or chat bot. The IRS is now employing the technology on two of its specialized phone-assistance lines and on IRS.gov. The voice bots will provide taxpayers with assistance in English and Spanish. These bots can help taxpayers […]