Tax News

The CARES Act provided numerous ways in which to handle loans and distributions from qualified retirement plans and IRAs for those impacted by COVID-19 who needed funds. The IRS has provided guidance ...

The IRS has announced that the interest rates applicable to overpayments and underpayments of federal taxes are much lower in the third quarter of 2020 compared with the rates in the second quarter of...

In an effort to help taxpayers struggling with IRS collection and enforcement activities, the IRS launched the People First Initiative to provide relief (FS-2020-09, June 2020). The program modifies t...

If you have certain foreign financial accounts, you must report them annually to the U.S. Treasury. This is done electronically through BSA E-Filing System (https://bsaefiling.fincen.treas.gov/NoRegFB...

For 2020, whether you itemize or claim the standard deduction, you can take a charitable contribution deduction (subject to limitations). This write off applies only to donations to IRS-approved chari...

Recently, the IRS announced next year’s contribution limits for health savings accounts (HSAs), as well as requirements for high-deductible health plans (HDHPs) to which HSAs must be linked (Rev. Pr...

Spouses can make separate estimated tax payments and apply them to a jointly filed return. Or they can make joint estimated tax payments and allocate them to separate returns. When a couple has a pre-...

If you have a medical FSA or a dependent care FSA for 2020, the IRS has provided some relief that may be helpful to you (Notice 2020-29 and Notice 2020-33). This relief is in response to the unexpecte...

When estate and non-grantor trusts have deductions that exceed their income, these excess deductions are passed through to beneficiaries. However, the Tax Cuts and Jobs Act bars individuals from claim...

If you are an undergraduate and graduate student who received an emergency financial aid grant as a result of experiencing unexpected expenses or unmet financial need as a result of the COVID-19 pande...

If you received your Economic Impact Payment, keep in mind that it’s tax free. You do not have to use the money for any particular purpose. If you haven’t received your payment, the IRS has a p...

An offer in compromise (OIC) is an agreement that a taxpayer can reach with the IRS to settle an outstanding tax debt at less than the full amount under special circumstances. The taxpayer must show t...

Having coverage through high deductible health plan (HDHP) is a prerequisite for contributing to a health savings account (HSA). Typically, HDHPs require you to exhaust the policy’s deductible befor...

Tax returns, Tax Court petitions, and other time-sensitive documents are treated as having been timely filed with the government if they are mailed on time (“timely mailed timely filed rule”). Und...

A person’s failure "to pay any tax" after the government’s demand for payment creates "a lien in favor of the United States upon all property and rights to property, whether real or personal, belo...

The interest rates on overpayments and underpayments for the second quarter of 2020 are unchanged from the first quarter rates (Rev Rul. 2020-7). The rates are: Noncorporate overpayments and under...

Congress and the IRS have been busy on changing tax rules to help individuals and businesses get through the economic disaster triggered by COVID-19. The changes impact 2019 returns, as well as return...

The IRS has announced a variety of measures designed to bring taxpayers required to file returns but who failed to do so into compliance (Fact Sheet 2020-02). The Service’s efforts promote voluntary...

There is confusion about the tax treatment of inherited IRAs. It is true that the inheritance of an IRA is not a taxable event, regardless of the size of the account. An inheritable is tax free. But i...

If you own a life insurance policy and sell it, you may realize gain on the transaction. The Tax Cuts and Jobs Act (TCJA) changed the rules for determining basis used in measuring gain from such a sal...