Tax Laws

  • IRS Refunding Tax Paid on Unemployment Compensation

    Millions of Americans paid taxes on their unemployment compensation before learning that an exclusion was introduced by legislation a month into filing season. So, the Internal Revenue Service is now sending some of those taxpayers a refund to satisfy the new law. Some 13 million taxpayers could be eligible for the adjustment. The IRS says…

  • Expats, Others Abroad Face June 15 Filing Deadline

    Uncle Sam is reminding its citizens who live and work outside its borders that their tax deadline is rapidly approaching. While the bulk of taxpayers had to get their tax returns filed by May 17 this year, U.S. citizens and resident aliens who live abroad—as well as those with dual citizenship—have to file by June…

  • IRS Says It’s a Good Time to Fine-Tune Withholding

    Now that the income tax filing deadline has passed, it’s a good time to take a hard look at whether we have the right amount of taxes withheld from our paychecks. After all, getting hit with a big tax bill after filing can often mean that the employee isn’t withholding enough of their paycheck to…

  • IRS Encourages Taxpayers Who Missed the Deadline to File

    The deadline for filing income taxes came and went on May 17, but that’s no reason to think the filing door is completely shut. Taxpayers who owe tax due but didn’t request an extension should file now to keep their penalties and interest to a minimum. Even if taxpayers don’t owe tax due, it’s still…

  • IRS to Taxpayers: Don’t Forget to Report Tip Income

    With restaurants beginning to open more fully due to a break in the coronavirus pandemic, employees in the food and beverage industry are soon likely to have a lot more to report on their taxes: Tips. That’s why the Internal Revenue Service is reminding taxpayers that that tips should be included in gross income when…

  • Cryptocurrency and the Form 1040

    Public fascination with cryptocurrency tends to follow dramatic gains and losses in the market. While the latter results in pundits sounding the death knell for Bitcoin and its ilk, the most reliable predictor for the lifespan and legitimacy of crypto lies in the Internal Revenue Service—and some newly minted crypto-holding clients may have questions about…

  • IRS Reminds Taxpayers to Prepare for Natural Disasters

    It was a wise man indeed who first warned us to “hope for the best, but prepare for the worst.” The Internal Revenue Service is following in those footsteps by reminding taxpayers that spring begins a very active period for weather in the U.S. In light of that, May includes both National Hurricane Preparedness Week…

  • IRS Reminds Taxpayers About Offer in Compromise Program

    Sometimes, taxpayers find themselves with a tax bill they just can’t satisfy. The taxpayer is willing to pay, but the bottom line is more than they can afford. Circumstances like this are made for compromise; or more precisely, an offer in compromise. Meeting in the middle … “An offer in compromise is an agreement between…

  • New Draft Schedules K-2 and K-3 Announced by IRS

    Partnerships and S corporations that will have to report “international tax matters” in 2022 can now review the new draft releases for Schedules K-2 and K-3. The IRS today announced the early release drafts, noting that instructions would follow sometime in the summer. “The redesigned forms and instructions will also give useful guidance to partnerships,…

  • Navigating Notices About Economic Impact Payments

    The Internal Revenue Service has kept taxpayers’ mailboxes busy for months now, sending out notices to taxpayers about the various Economic Impact Payments that have been issued. The agency was required to mail a notice to the last known address of each Economic Impact Payment (EIP) recipient every time a new EIP was issued. So,…