The 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 […]
Read More Federal Budget DeficitThe qualified opportunity zone (QOZ) program allows investors who recognize capital gains to reinvest those gains in Qualified Opportunity Funds (QOFs) that, in turn, invest in QOZs throughout the United States. The Treasury Inspector General for Tax Administration (TIGTA) has issued a report that, among other things, assesses IRS processes to ensure that taxpayers that […]
Read More Qualified Opportunity ZoneSpouses who file joint federal tax returns are both generally liable for the tax owed. But joint filers may seek “innocent spouse” relief. One taxpayer requested relief for multiple years of underpaid taxes. A U.S. Court of Appeals found that the U.S. Tax Court properly denied her relief claim. She had tacitly consented to filing […]
Read More Tax NewsRepublican Senators seek tax filing season relief. Ranking Republican on the Senate Finance Committee Mike Crapo (R-ID) and 29 GOP colleagues asked the Treasury Dept. and IRS in a letter for “targeted temporary relief” for taxpayers. “While recognizing the challenges the IRS currently operates under, we find the current situation at the IRS alarming,” the […]
Read More Tax NewsThe IRS recently announced the release of its 2022 Household Employer’s Tax Guide, highlighting several changes. You need to withhold and pay Social Security and Medicare taxes if cash wages of $2,400 or more are paid in 2022 to any one household worker (up from $2,300 in 2021). You don’t count wages paid to a […]
Read More 2022 – 02/15Contributing the annual maximum amount to your retirement plan is generally a good thing. Exceeding the max? Not so good. If you deferred more than $19,500 (plus $6,500 for individuals 50 and older) of your salary in 2021 to various employer plans, the IRS warns that you must withdraw the excess amount, plus earnings, by […]
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