Like most income, tips in the service industry are taxable. It doesn’t matter if tips are paid directly in cash or added to payments by credit, debit or gift cards, or shared with coworkers. Noncash tips, such as tickets or passes are also taxable. To correctly report tip income, the IRS advises taxpayers to keep […]
Read More Tax News on tipsHaving “seriously delinquent tax debt” could put your passport at risk (unless an exception applies). This generally means that the assessed tax debt is at least $55,000 in 2022, a lien has been filed and other remedies have been exhausted. If such conditions exist, the U.S. State Dept. can deny, revoke or limit a passport. […]
Read More Tax NewsJust before Russia invaded Ukraine on Feb. 23, President Biden announced sanctions against two Russian banks and those doing business in the so-called “Donetsk People’s Republic” and “Luhansk People’s Republic” regions of Ukraine. More sanctions are expected now that the invasion is underway. U.S. individuals and companies with overseas business are encouraged to review reporting […]
Read More Ukraine in Tax NewsAlong with seemingly everything else, interest rates for federal tax overpayments and underpayments are going up. The IRS has announced that, starting in 2022’s second quarter (April 1), the new rates are 4% for overpayments and underpayments. For corporations, the rate for overpayments is 3% (1.5% for any amount exceeding $10,000) and 6% for underpayments […]
Read More Tax NewsIf you want to register for an IRS Online Account, you’ll no longer be subjected to the use of biometric data, including facial recognition. According to the IRS, taxpayers now have the option of verifying their identity during live, virtual interviews with IRS agents. With an Online Account, taxpayers can, among other things, access tax […]
Read More Tax NewsThe IRS is providing penalty relief for certain pass-through entities required to file Schedules K-2 and K-3 for 2021. Certain domestic partnerships and S corporations won’t be required to file the schedules, which are intended to make it easier for partners and shareholders to find information related to “items of international tax relevance” that they […]
Read More Tax NewsIf an individual has been deemed a “noncompliant” taxpayer and has possible criminal exposure, it’s important to address the issue quickly. One option is to submit Form 14457, Voluntary Disclosure Practice Preclearance Request and Application. Following a review of tax practitioner feedback, the IRS recently updated the form to facilitate submission. It now includes an […]
Read More Tax NewsThe IRS reminded those with income from a farming or fishing business that they should file and pay their entire tax due on or before Tues., March 1, if they didn’t make estimated tax payments. Farmers and fishers who decided to forgo making estimated tax payments have the option to pay the entire tax due […]
Read More Tax NewsIn response to pressure from Congress, 1,200 IRS employees have been dispatched to sort and process millions of outstanding 2020 amended paper tax returns. IRS Commissioner Chuck Rettig says a separate team will tackle 2021 paper returns as they come in. The backlog has been caused, in part, because the IRS suspended approximately 35 million […]
Read More Tax NewsThe Congressional Budget Office has estimated that the federal budget deficit for the first four months of fiscal year 2022 was $259 billion. This number is about one-third of the deficit recorded during the same period in 2021 ($736 billion). Tax revenues totaled $1.5 trillion, an increase of 28% compared to 2021. Individual income and […]
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