Drake Software

  • More IRS Forms Go Digital for Contact-Free Signature Options

    The Internal Revenue Service is bringing more tax forms into the 21st century while keeping tax professionals and taxpayers alike safer from possible coronavirus transmission. A new online option from the IRS helps tax pros remotely get signatures from individual and business clients on authorization forms and to submit those forms electronically. It’s available through…

  • 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…

  • 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…

  • 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…

  • New Guidance Clears Up Partnership Deduction for State, Local Taxes

    A new notice from the Internal Revenue Service reveals some new rules that are expected to be included in upcoming proposed regulations. Notice 2020-75 spells out the proposed regulations clarifying that state and local income taxes imposed on and paid by a partnership or S corporation on its income are allowed to be claimed as…

  • IRS Says Self-Supporting College Students Could Qualify for an EIP

    The Internal Revenue Service announced that some college students could qualify for an Economic Impact Payment. This press release is part of the agency’s push to get all eligible non-filers to register for an EIP before the Nov. 21, 2020 deadline, and it comes days before National EIP Registration Day. “In advance of the National…

  • IRS Streamlines Payment Agreement Setup

    The Internal Revenue Service has unveiled changes they say will help struggling taxpayers affected by the pandemic settle their IRS tax debts more easily. The agency says it took a hard look at its collection activities to see how it could offer some relief to taxpayers who owe tax due but are struggling financially because…

  • IRS Announces Interest Payments to 13.9 Million Refund Recipients

    Receiving a tax refund might be the only thing people like about filing their return, and it looks like some taxpayers are about to get just a little more money from the Department of Treasury. The Internal Revenue Service today announced that it “will send interest payments to about 13.9 million individual taxpayers who timely…