Tax News

  • Why Host Drake Software with Rightworks?

    In November 2021, Drake Software and Rightworks collaborated on a three-part series highlighting different software solutions available to tax professionals. In part one, we learned about the different ways tax practices run software. Part two covered how cloud application hosting handles data security. And in part three, Drake Software taught us how cloud application hosting…

  • 2022 Standard Mileage Rates Now Available

    The Internal Revenue Service has put a little more cushion into its standard mileage rates, so taxpayers won’t have such a big bite taken out of their pockets by fuel prices. The rates for 2022, which take effect on January 1, will be used to figure the deductible cost of operating a vehicle for business,…

  • IRS: Don’t Forget the Required Minimum Distributions Deadline

    While most Americans have their eyes firmly on the Christmas holidays, many US retirees have another milestone to consider. While the holidays are the emotional favorite, they shouldn’t let the deadline slip by to make Required Minimum Distributions (RMDs) from their retirement plans and individual retirement accounts. That deadline is December 31. RMDs are generally…

  • Tips for Protecting Your EFIN

    Tax professionals have been in the crosshairs of cybercriminals for some time now, and it’s only getting worse. Now, the crooks are casting their nets, not only for client data, but to snare vital data of the tax pros themselves. The Internal Revenue Service says this newest group of targets include the tax professional’s Electronic…

  • IP PINs Make Tax Returns More Secure

    Six little numbers. They could be all the difference between a happy taxpayer and someone who’s fallen victim to identity thieves. The six numbers make up an Identity Protection Personal Identification Number, also known as an IP PIN, and they can help to keep taxpayers’ personal financial information, well, personal. An IP PIN is a…

  • Don’t Fall for Fake Charities

    With the passage of Thanksgiving, Americans are shifting into gifting mode. For many, that means giving a holiday monetary gift to a well-deserving charity of one sort or another. Unfortunately, scammers can use this noble intention to enrich themselves through fake charities. While the scammers’ main prize is money, they also can use the fake…

  • IRS Notices CP08 and CP09

    Now that the IRS is putting the wraps on the last installment of the Advance Child Tax Credit payments for 2021, some taxpayers who didn’t apply for other credits might get a reminder to do a little extra checking. For some taxpayers, these notices may be the gateway to an additional refund from the IRS.…

  • IRS Announces Increased Transcript Limit for Tax Pros

    The Internal Revenue Service says tax professionals spoke—and the agency listened. After getting comments from tax pros, the IRS has now increased the number of transcripts a professional preparer can get on any one client. The previous limit was 10 transcripts for a single client, but now, the IRS says, practitioners can get up to…

  • Some Non-Itemizers Can Deduct Charitable Donations

    A new provision in the tax code lets more taxpayers deduct up to $600 in donations to qualified charities—even if they don’t itemize.  Itemizing is ordinarily the key that unlocks the charitable donation deduction; taxpayers choosing the standard deduction usually just don’t have that option. A new, albeit temporary, change in the tax law now…

  • IRS Issues PTIN Renewal Reminder

    It’s that time again: time for federal tax return preparers to renew their Preparer Tax Identification Numbers (PTINs) for the coming year. It’s no time to procrastinate, since 2021 PTINs will expire on Dec. 31. A valid PTIN is required for anyone who prepares—or assists in preparing—a federal tax return for a fee. This requirement…