Drake Software

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…

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…

A new federal report finds that more Americans may get an unpleasant surprise come April 15. Most folks expect to pay less tax after the tax cut law went into effect in late 2017. But the Government Accountability Office says more American taxpayers will actually have to pay tax due because their employers aren’t withholding…

New form confirmed replacement for the Forms 1040, 1040A, and 1040EZ Last week, draft copies of the new Form 1040 that is also rumored to be a replacement for the 1040A and 1040EZ began circulating. By the end of the week, the IRS confirmed several rumors when it issued a press release outlining the pending…

While Treasury Secretary Mnuchin teased the imminent release of the administration’s newly resurrected promise of a postcard-sized Form 1040 last Thursday, a leak seems to have stolen some of his thunder. Namely, it’s rumored that the new Form 1040 is expected to also replace the 1040A and 1040EZ. What do we know about the new…

Baffled by Bitcoin? In the dark over Litecoin but find Ethereum engaging? No matter what your attitude toward the use of virtual currency, the Internal Revenue Service wants you to know that there’s really only one thing to keep in mind as far as income taxes are concerned: virtual currency transactions are taxable by law…

If you have to call the IRS help line on behalf of a client, you’ll need more than the client’s name and SSN. By law, IRS operators will speak only with the taxpayer or their legally designated representative. This is all part of the industry-wide push for higher levels of security. If tax pros call…

Everybody loves an income tax refund. But when a check for a tax refund shows up in your mailbox unexpectedly, it could be a signal of something very wrong: a tax scam. It started around the New Year, when the Internal Revenue Service got wind that a number of tax professionals had their computer systems…

IRS: Renew ITIN to Avoid Processing Delays The Internal Revenue Service says taxpayers who have not renewed their expired Individual Taxpayer Identification Number (ITIN) will face processing delays if the number is used to file a return. In addition, the taxpayer could lose eligibility for key tax benefits until the ITIN is renewed. An ITIN…

If they haven’t done so already, tax professionals need to register now for access to the IRS’ e-Services tools. Recent security upgrades require that all e-Services users re-register through the site’s more rigorous identity verification and two-factor authentication process called Secure Access. To get started, the IRS recommends taking some steps that can make the…