IRS Updates

  • Tax Year 2024 Updates: Essential Insights for Tax Professionals

    As we prepare for tax year 2024, professionals must stay ahead of industry shifts to provide top-tier service to their clients. From the ethical use of AI to significant IRS updates affecting compliance, reporting thresholds, and tax credits, understanding these changes is vital. Below, we explore key updates and their implications for tax practices. Using…

  • Drake Pay™ Launches New Feature: Request Payments via Email with Secure Payment Link

    At Drake Software®, we are continually refining the tools you need to manage your tax and accounting practice effectively. We’re excited to introduce a new feature in Drake Pay that enhances the payment process for tax preparers and their clients. New Feature: Request Payments via Email with a Secure Payment Link Our latest update enables…

  • IRS Disaster Relief

    Filing deadlines often change for taxpayers in regions that experience natural disasters. When these extreme weather events hit, the Internal Revenue Service frequently provides tax due date extensions to areas designated by the Federal Emergency Management Agency (FEMA). The relaxed due dates are intended to give more time to the individuals and businesses impacted by the natural…

  • IRS Unveils 2024 Nationwide Tax Forum Agenda with 45 Seminars

    The Internal Revenue Service (IRS) has announced the agenda for the 2024 Nationwide Tax Forum, which will feature 45 seminars aimed at enhancing the skills of tax professionals. This year’s forum, which includes contributions from the IRS and leading tax associations, will cover a broad spectrum of topics designed to help tax professionals better serve…

  • IRS Warns Tax Preparers of EFIN Documentation Scam

    Tax season is in full swing, and with it comes a surge in scams targeting tax professionals. The Internal Revenue Service (IRS) and Security Summit partners have issued a warning about a new email scam that impersonates various software companies, aiming to steal Electronic Filing Identification Numbers (EFINs). These scams pose a serious threat to…

  • IRS Clarifies Digital Assets Not the Same as Cash—Yet

    In a significant move last week, the Treasury Department and IRS announced that digital assets received by businesses do not follow the same reporting requirements as cash assets in 2024, at least until the issuance of specific regulations. This announcement comes after the Infrastructure Investment and Jobs Act, which brought about revisions to the rules…

  • IRS Announces Penalty Relief for Nearly 5 Million Tax Returns

    The IRS has announced new penalty relief totaling around $1 billion to approximately 4.7 million individuals, businesses, and tax-exempt organizations. This relief is aimed at those who did not receive automated collection reminder notices during the pandemic, which were temporarily suspended in February 2022 due to the COVID-19 crisis. The IRS will issue a special…

  • IRS Delays 2023 Form 1099-K Threshold, Introduces $5,000 for 2024

    In a recent announcement, the Internal Revenue Service (IRS) has decided to delay the implementation of the new $600 Form 1099-K reporting threshold for third-party payment organizations. The decision to treat 2023 as a transition year comes in response to feedback from taxpayers, tax professionals, and payment processors. The IRS is also planning a phased-in…

  • Time Running Out to File for Recovery Rebate Credit

    The window for claiming a pandemic-driven tax credit is still open to taxpayers who didn’t take advantage of it during the main Covid outbreak. But closing dates are approaching, making filing a claim for eligible taxpayers (tax years 2020 or 2021) a priority for tax preparers.  For a historical background, we have to go back…

  • Understanding the New IRS E-Filing Requirements for Forms W-2

    As we prepare for the 2024 tax season, the IRS is also updating regulations for tax forms and filing requirements. One such regulation establishes a new threshold for electronic filing of certain returns. This change has implications for employers and taxpayers alike, as it affects the way tax-related information is submitted to the IRS. In…