Who is affected: Everyone that is required to file a tax return. If you owe tax and don’t file an extension, you are subject to a f Failure to File Penalty. Here is how that is calculated: The Failure to File Penalty is 5% of the unpaid taxes for each month or part of a… Read More
Who is affected: Everyone that pays Federal income tax We are all feeling the effects of rising prices, but those increases could make filing taxes a little less painful in the future. The effect of inflation has prompted the IRS to raise thresholds for income tax brackets for tax year 2023. While such adjustments take place… Read More
Who is affected: Anyone that improves the efficiency of certain improvements in their home to save energy The Inflation Reduction Act (IRA) passed by Congress August 16, 2022 made changes to credits allowed on income tax returns for tax year 2023. Through 12/31/2022 the energy efficient home improvement credit has a $500.00 lifetime maximum. As… Read More
Who is affected: All clients that have student loan debt and meet the income limitation requirements for the debt to be forgiven. The U.S. Supreme Court will hear arguments on a legal challenge to President Biden’s student loan forgiveness program in February 2023, with a final decision expected in June 2023. While the court’s… Read More
Who is affected: Anyone that qualifies to deduct business use of an automobile. Generally, this is self-employed persons filing Schedule C and businesses Due to the spike in gasoline prices last summer, the IRS increased the standard mileage deduction for the second half of 2022. If you deduct mileage, the allowance will be based on… Read More
Who is affected: All US Taxpayers As part of the Inflation Reduction Act passed in the summer of 2022, Congress allocated $80 billion to the Internal Revenue Service. Given the significant amount of funding—far more than had been given in decades—the allocation became the subject of political spin on how the money would be used;… Read More
Who is affected: Anyone that uses online payment methods such as PayPal, Venmo, etc. There has been a great deal of information published regarding a proposed regulation by Congress that would require third party payment services such as PayPal, Venmo, Zelle and others to report to the Fed amounts processed that are 600.00 or more… Read More
Who is affected: All Indiana Taxpayers For Indiana residents that met eligibility requirements, a refund was issued in the summer of 2022 for $125. A second refund was authorized in the fall of 2022. Anyone that qualified for the first refund automatically received the second refund for $200. If a resident did not meet the… Read More
Who is affected: All taxpayers Just before Christmas 2022 Congress has passed, and the President signed a bill to fund the U.S. government for the 2023 fiscal year that includes provisions known as “Secure 2.0.” Secure 2.0 makes changes to the retirement system that build upon those in the Secure Act of 2019. Parts of… Read More
We encourage our clients to initiate an online account with the IRS. Having an online account will allow you (and us) to work more quickly to obtain information and communicate with the IRS if there are problems. It’s easy to set up. You can learn about the taxpayer online account here https://www.irs.gov/payments/your-online-account … Read More