Tax Laws

  • All Taxpayers Now Eligible for Identity Protection PINs

    The Internal Revenue Service is expanding just who is eligible for an Identity Protection PIN. In fact, the IRS has thrown open the gates and now says any taxpayer who can verify their identity can now get an IP PIN. The IP PIN is a six-digit code that is known only to the taxpayer and…

  • Treasury Issuing Millions of EIPs by Debit Card in Second Round

    It’s a busy time for the Treasury Department and the Internal Revenue Service. They’re sending out some 8 million second-round Economic Impact Payments (EIPs) by prepaid debit card. The debit cards follow millions of EIPs already made by direct deposit and the ongoing mailing of paper checks to deliver the second batch of EIPs as…

  • What is the taxable income QBI threshold for 2020?

    There are two income thresholds for claiming QBI in tax year 2020: $163,300 for single taxpayers, heads of household, qualifying widows and widowers, or trusts and estates $326,600 for married couples filing jointly Return to Taxing Subjects frequently asked questions. Related FAQs: What is the Qualified Business Income Deduction? What types of business income qualify…

  • 2021 Standard Mileage Rates Now Available

    Taxpayers who expect to do some business-related driving next year will probably be happy to learn that the optional standard mileage rates for 2021 are now available from the Internal Revenue Service. Included in Notice 2021-02, the new standard mileage rates will apply on January 1, 2021. The optional standard mileage rates are one of…

  • Guidance Released for Some Debt Instruments Issued for Property

    The Internal Revenue Service has issued Revenue Ruling 2021-01, which lays out the prescribed rates for various income tax purposes. The ruling includes rates including those for applicable federal interest rates, adjusted applicable federal interest rates, the adjusted federal long-term rate, and the adjusted federal long-term tax-exempt rate. The rates are determined as laid out…

  • New IRS Guidance Eases Burdens on Certain Safe Harbor Plans

    The Internal Revenue Service has issued Notice 2020-86, addressing certain parts of the SECURE Act that affect safe harbor plans—including safe harbor 401(k) plans and some 403(b) plans. The SECURE Act—also known as the Setting Every Community Up for Retirement Enhancement Act—was passed into law in 2019. Not all 401(k) plans qualify A safe harbor…

  • What’s New, What to Consider When Filing in 2021

    The tax-filing season will be upon us before we know it, so the Internal Revenue Service is urging taxpayers to take actions now to help ensure they can file timely and accurate returns in 2021. Things to consider The IRS says there are some areas that taxpayers should give extra attention before filing. These topics…

  • Final Regulations Clarify Section 1031 Like-Kind Exchanges

    The Internal Revenue Service and the Treasury Department have issued their final regulations on section 1031 like-kind exchanges. The regulations clarify the definition of real property under section 1031, while providing a rule governing the receipt of personal property incidental to real property in a like-kind exchange. TCJA Limits Focus of Like-Kind Exchange Legislation passed…

  • IRS to Mask Key Details on Business Transcript

    After Dec. 12, business tax transcripts will soon be a little less informative—for good reason. The IRS will start masking sensitive data on the transcripts to protect businesses from identity theft beginning Dec. 13. The announcement from the IRS provides 30 days for adjustments from stakeholders. The agency started informing tax pros of the change…

  • More Time to Register to Get $500 EIP for Children

    Some people managed to register for their $1,200 Economic Impact Payment (EIP) but just didn’t have the necessary information in-hand to also sign up for the $500 payment for qualifying children. Now the IRS says there’s a way to get that missing payment. The Internal Revenue Service has announced that federal beneficiaries who didn’t register—or…