Tax News

  • Dirty Dozen: Avoid Improper Claims for Business Credits

    The Internal Revenue Service is warning taxpayers and tax professionals against improperly claiming various business tax credits, which has become a common tax scam. That’s why the topic shows up on this year’s IRS “Dirty Dozen” list of common scams that can occur anytime during the year. When it comes to bogus credits on business…

  • Dirty Dozen: Bogus Income but Very Real Refunds

    The Internal Revenue Service is reminding taxpayers just to think inside the box when it comes to completing their tax returns. In other words, steer clear of any schemes that falsify income or create fake Forms 1099. The practice is used enough to land it on the IRS’ “Dirty Dozen” list of the most common…

  • IRS Says Shutdown Affected EA Renewals

    Expiring Enrollments to be Extended While the headline might seem a month late, the IRS recently reminded enrolled agents (EAs) that the effects of the government shutdown didn’t suddenly come to an end on January 25 when the president signed a stopgap spending bill. In addition to forcing the cancellation of Tax Court sessions and…

  • Cincinnati Tax Processing Center to Be Closed

    The Internal Revenue Service is reminding the nation’s tax professionals that, by the end of 2019, the IRS’ Cincinnati Tax Processing Center will be closed. That will eventually leave centers in Kansas City, Mo., and Ogden, Utah, as the only remaining processing locations after 2025. The Cincinnati center is physically located in Covington, Ky., directly…

  • Government Shutdown Causes Cancellation of IRS Public Hearing

    The partial federal government shutdown is in its nineteenth day, and it seems some federal services will be unavailable for the foreseeable future. While the IRS Commissioner recently assured taxpayers that the shutdown would not impact the issuance of refunds, other federal processes have not been spared, like the public hearing for Qualified Opportunity Fund…

  • Reminder: New Tax Law Revised Family Tax Credits

    Tax reform legislation passed in late 2017 doubles the maximum Child Tax Credit, boosts income limits for claiming the credit, and revises the identification number requirement for 2018 and later years. The new law also creates a second, smaller credit of up to $500 per dependent for those taxpayers supporting older children and other relatives…

  • Tax Reform Expands Retirement Contribution Limits

    Notice 2018-83 details that taxpayers can now generally contribute more money to their retirement funds as part of the cost-of-living adjustment guidance. Changes for 2019 The contribution limit for employees participating in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan is hiked from $18,500 to $19,000. Annual contributions to an IRA…

  • New Tax Transcript Now Online

    A revamped tax transcript is now available for individual taxpayers and tax professionals. The IRS previously announced the improvements to the transcript design, which is aimed at making the product more secure. Transcripts are a prime target of hackers and identity thieves, since transcripts can provide the real taxpayer data that can make a fraudulent…

  • IRS Notes TCJA Changes to ABLE Accounts

    The Internal Revenue Service last week issued a Tax Tip outlining how the Tax Cuts and Jobs Act (TCJA) will affect section 529A ABLE accounts. In 2014, Congress passed The Achieving a Better Life Experience Act, which established a new type of state-offered savings account designed to help disabled Americans afford qualified disability expenses, like…

  • Delaware Governor Signs Tax Preparer Regulations

    Delaware Gov. John Carney has signed legislation aimed at protecting the state’s taxpayers from unscrupulous tax professionals. Accounting Today reports the legislation, called the Taxpayer Protection Act, became law this week. Among other things, it requires tax preparers in the state to include their Preparer Tax Identification Number (PTIN) whenever they file a state tax…