Tax News

  • IRS Allowing Fraudulent Credits to Go Through, Audit Finds

    The federal office tasked with overseeing the Internal Revenue Service says fraudulent claims for refundable credits are going through – in spite of the tools Congress gave the agency to stop them. The Treasury Inspector General for Tax Administration – also known as TIGTA – did its audit as a follow-up to a prior audit…

  • Standard Mileage Rates Tweaked for 2020

    Updated January 15, 2020: We incorrectly listed the standard mileage rate for business use as 5 cents per mile.  The Internal Revenue Service has set the optional standard mileage rates for 2020. These rates are used to figure the deductible costs of operating a vehicle for business, charitable, medical or moving purposes. Beginning Jan. 1,…

  • New Downloadable Tool Helps Small Business with Employee Withholding

    The Internal Revenue Service has come up with a new online tool that’s designed to help employers—especially those in small business—easily determine the correct amount of income tax to withhold from workers’ pay. It’s called the Income Tax Withholding Assistant for Employers, and the new spreadsheet-based tool is designed to help employers transition to the…

  • Tax Exempt Organizations Now Required to File Electronically

    The Internal Revenue Service is reminding tax-exempt organizations that recent changes in the law now require them to file information returns and other forms electronically. The new law, the Taxpayer First Act, was enacted July 1 and affects tax-exempt organizations for tax years beginning after July 1, 2019. What is Covered? The mandate for electronic…

  • IRS Says 91% of Criminal Investigation Cases Get a Conviction

    An annual report from the Internal Revenue Service credits cutting-edge data analytics and “good, old-fashioned police work” for achieving a 91% conviction rate on cases probed by the IRS Criminal Investigations division. The report, IRS’ Criminal Investigations Report for 2019, outlines the division’s successes for the year, while also marking CI’s 100-year anniversary as a…

  • IRS Has Tips for Tax Pros Preparing for Filing Season

    With a matter of weeks before tax season, the Internal Revenue Service is reminding tax professionals to get their offices in order during these slower days before filing starts. A little work done now can mean fewer headaches once the IRS starts taking in returns. Update Your E-Services Information E-Services encompasses a whole suite of…

  • Tax Year 2020 Annual Inflation Adjustments Revealed by IRS

    A recent Internal Revenue Service press release revealed the tax year 2020 annual inflation adjustments, which affect a number of tax items, including marginal tax rates, the Alternative Minimum Tax, the Earned Income Credit, and more. While the IRS notes that there are “more than 60 tax provisions” addressed by the adjustments, the first item…

  • IRS Announces New Way to Pay Tax Bills That Have Gone to Private Collections

    IRS Stresses Convenience of New Payment Method Taxpayers whose outstanding tax bill has been referred to a private debt collector have a new way to pay, according to a recent IRS press release. The IRS launched the private debt collection program following the passage of the 2015 Fixing America’s Surface Transportation (FAST) Act, which—according to…

  • IRS to Stop Sending W-2 Verification Codes

    Form W-2 Reporting Deadline Moved to January 31 The Internal Revenue Service on Friday announced that it is ending the Form W-2 Verification Code pilot program. According to the release, the agency will not send the code for tax year 2019 returns. Since 2015, Security Summit partners have taken steps to address the growing threat…

  • Safe Harbor Clarifies QBI Deduction for Some Rental Properties

    Taxpayers interested in taking the section 199A qualified business income deduction (QBI) for their rental property will be happy to learn that the IRS announced a finalized safe harbor rule this week. QBI was introduced in the Tax Cuts and Jobs Act as tax relief for businesses not eligible for the new 21-percent C corporation…