Tax News

Current Tax News

  • The Tax Adviser
  • Tax Foundation
  • Tax Act

The IRS granted individual taxpayers a waiver from the penalty for underestimated tax due solely to the amendment to Sec. 461(l)(1)(B) in the CARES Act repealing the excess business loss limitations for years before 2021. [...]

The AICPA asked the IRS and Treasury to clarify that the filing of a Paycheck Protection Program loan forgiveness application is not an election by the taxpayer to forgo the employee retention credit for wages reported on the application exceeding the amount of wages necessary for loan forgiveness. [...]

The IRS announced that it will start accepting 2020 tax returns on Feb. 12, a later date than usual. The delay stems from programming changes needed to account for year-end tax legislation. [...]

The IRS issued final regulations on when fines and penalties paid to a government are not deductible by a taxpayer, including defining when a payment counts as restitution, which may be deductible. [...]

The IRS issued final regulations on the excise tax on excess remuneration over $1 million paid by tax-exempt organizations, finalizing proposed regulations with a few changes in response to comments. [...]

Massachusetts Flavored Tobacco Ban Has Severe Impact on Tax Revenue

The Massachusetts flavored tobacco ban highlights the complications of contradictory tax and regulatory policy, the instability of excise taxes that go beyond pricing in the cost of externalities, and the public risks of driving consumers into the black market through excessive taxation or regulation. [...]

To What Extent Does Your State Rely on Property Taxes?

New Hampshire and Alaska rely most heavily on property taxes. Neither have individual income taxes, and in New Hampshire, significant government authority often vested in state government is devolved to the local level, where services are overwhelmingly funded by property taxes. [...]

President-elect Biden Outlines Plan for Additional Coronavirus-Related Relief and Stimulus

President-elect Joe Biden envisions a two-part response to the pandemic and economic crisis. The first aspect, the $1.9 trillion American Rescue Act, builds on previous relief packages and would include larger payments to individuals, expanded relief for households and small businesses, funding for vaccine distribution, and aid to state and local governments. [...]

The OECD consultation is in the context of the Inclusive Framework on Base Erosion and Profit Shifting which is made up of delegates from more than 135 countries and is focused on policies that reduce opportunities for tax avoidance by multinational companies. The current proposals being considered would change both where and how much companies pay in corporate taxes. [...]

What to Expect During the 2021 Tax Season

The 2021 tax season will be a messy one for taxpayers, the IRS, and state tax authorities because of the tax changes made over the past year and the logistical challenges due to the ongoing pandemic. The IRS should provide flexibility for individuals and businesses seeking to comply with and understand their tax obligations for the year while looking forward to ways that would simplify tax compliance and the filing process. [...]

The 2021 Tax Season will Start Feb. 12

  2021 tax dates to highlight on your calendar: January 15, 2021 2020 4th quarter estimated tax payment due date for individuals February 1, 2021 Forms W-2 and 1099 are due to taxpayers. February 12, 2021 Start of the 2021 tax season The IRS recently announced it will open the 2021 tax season and start […] The post The 2021 Tax Season will Start Feb. 12 appeared first on TaxAct Blog. [...]

Second Stimulus Payment Frequently Asked Questions

On Jan. 10, 2021, we announced the IRS has committed to reprocessing stimulus payments directly to our customers impacted by the IRS payment error. This decision was made after days spent advocating for our customers and pushing the IRS to rightfully send these much-needed stimulus dollars quickly to our customers. The IRS’ choice to reprocess […] The post Second Stimulus Payment Frequently Asked Questions appeared first on TaxAct Blog. [...]

The Second Stimulus Payment is Happening

*Last updated on Jan. 10, 2021.* IMPORTANT UPDATES ON THE SECOND STIMULUS PAYMENT  Latest update on Jan. 10 at 9:30pm CST TaxAct President, Curtis Campbell, shares a message on the timing of the second stimulus payments  Update on Jan. 10, 2021 2:45pm CST In conclusion of our meeting with the IRS today, we can confirm […] The post The Second Stimulus Payment is Happening appeared first on TaxAct Blog. [...]

Guide to Reporting Stock Investments on Your Return

Did you buy stocks for the first time in 2020? Well, first, congratulations! Investing in the stock market is one of the best ways to grow your net worth. By investing in stocks, you are basically putting your money to work for you. Money you invest can earn interest and dividends. Over time, you can […] The post Guide to Reporting Stock Investments on Your Return appeared first on TaxAct Blog. [...]

Guide to Reporting Your Unemployment Income

With COVID-19 still wreaking havoc across the globe, the U.S. economy has been shaken. In the United States a record number of people are or were once unemployed due to COVID-related shutdowns. Fortunately, many of those individuals qualified for standard state unemployment benefits, plus the additional federal funds offered as a result of the CARES […] The post Guide to Reporting Your Unemployment Income appeared first on TaxAct Blog. [...]