Drake Software

  • 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 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…

  • 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…

  • Tax Relief Available When Disaster Strikes

    While current weather patterns point to an active hurricane season, the IRS wants taxpayers to know that disaster assistance and tax relief measures are in place should a natural disaster strike. Before the Internal Revenue Service can authorize tax relief, though, the president has to declare the event a federal disaster. Once that occurs, tax…

  • New Process Lets Expats get Square with IRS

    The Internal Revenue Service says it has new procedures in place that can help certain expatriated American taxpayers come into compliance with their U.S. tax obligations and get relief for back taxes. Relief Procedures for Certain Former Citizens apply only to those individuals who have not filed U.S. tax returns as American citizens or residents,…

  • IRS to Self-Employed Taxpayers: Use the Tax Withholding Estimator

    According to the IRS, self-employed taxpayers should use the Tax Withholding Estimator when they perform their next “paycheck checkup.” IR-2019-149 is the latest press release advertising the Tax Withholding Estimator, the agency’s newest online tool: “The estimator is an expanded, mobile-friendly online tool that replaced the Withholding Calculator, which since 2001 had offered workers an…

  • No Dyed Fuel Penalty in Florida, IRS Says

    The IRS last Friday announced that it would be waiving the penalty for using red-dyed diesel in highway vehicles in Florida until September 15. The press release came while Floridians prepared for the possibility that Hurricane Dorian would make landfall. As of this afternoon, the now-Category 2 storm has yet to make landfall in the…

  • IRS Says it’s Time to Renew Expiring ITINs

    Time is running out for taxpayers who need to renew an expiring ITIN before next filing season. In June, the IRS issued a press release reminding taxpayers that failing to renew an expiring ITIN can result in refund delays and ineligibility for some tax credits. While ITINs are only used by taxpayers who can’t get…