Taxes

In a statement issued late yesterday the IRS indicated that it heard the tax industry’s concerns about new reporting requirements for pass-through entity (PTE) returns and would be issuing further guidance soon. That guidance came early today in the form of a new FAQ. The FAQ (Question 13) discusses the January 18, 2022 update to

By Ryan Finley At the end of the Tax Court’s 2016 opinion in Medtronic, a short section briefly summarizes and summarily rejects what the opinion describes as the IRS’s “alternative allocation under section 367(d).” A similarly perfunctory assessment appears tucked away in the Tax Court’s 2017 opinion in Eaton, which rejects substantially the same alternative argument for the same reasons, often using almost exactly the

The Internal Revenue Service announced today that the Voluntary Disclosure Practice Preclearance Request and Application has been revised. The IRS’s Voluntary Disclosure Practice has been around for years, and it is the best way for taxpayers who have potential criminal exposure for tax compliance issues to come forward. According to the IRS, “The updates reflect

Eelco van der Enden, the new CEO of the Global Reporting Initiative, discusses the growing environmental, social, and governance landscape and why tax is a necessary and important part of ESG reporting. This transcript has been edited for length and clarity. David D. Stewart: Welcome to the podcast. I’m David Stewart, editor in chief of Tax Notes

One of the sad truths of the Covid 19 pandemic is that while the housing market is hot, many people are in financial distress. Taxpayers with unpaid taxes receive scary letters that tell them the IRS intends to lien or levy their property. It’s important to understand the distinction between a tax lien and a

If you haven’t received all of your IRS Forms 1099 in the mail already, you should soon. These critical tax forms usually arrive in late January or early February, reporting how much you were paid in the prior calendar year. Forms 1099 can be wrong, so check them carefully. Each Form 1099 is matched to your Social Security

On November 7, 2019, the IRS proposed doing something that it had not done in nearly two decades…update the life expectancy tables used to calculate required minimum distributions by IRA, 401(k), other retirement account owners and many beneficiaries. More than a year later, on November 12, 2020, the IRS finalized those changes, and released updated

Today’s Social Security column addresses questions about whether it’s necessary to tell Social Security you want to delay until 70 to start benefits, claiming on an ex’s record and whether to withdraw an application and repay benefits received. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic

It’s tax time again and taxpayers are being bombarded with commercials from large tax franchises and the corporate owners of do-it-yourself (DIY) software. But hiring a professional or paying for DIY software can be beyond the means of many low- to middle-income taxpayers. What follows is a list of resources available for taxpayers looking for

Local governments have been interested in cryptocurrency like Bitcoin and Ethereum for years, and some have begun accepting it as a form of payment for certain transactions. But come places are taking it a step further.   Last month, Berkeley, Calif., announced it was moving forward on a long anticipated project to sell “microbonds” in the municipal market. City

Tax professionals who prepare returns for pass-through entities (PTEs), Partnerships and Subchapter S Corporations (S-corps) know that for tax year 2021 two new information reporting forms (Forms K2 and K3) may be required for PTEs with foreign partners or shareholders. According to Bruce Friedland, IRS Media Relations, “The schedules K-2 and K-3 replace already required

The Internal Revenue Service reported today that it has issued more than 4 million tax refunds already for the 2022 tax season as of February 4. Average refunds were $2,201.  Total returns received: 16,685,000 Total returns processed: 12,992,000 Total refunds: 4,330,000  That’s ten days into a filing season that opened on January 24. The IRS

In recent years, politicians on the far left have leaned on Modern Monetary Theory (MMT) to justify offering increasingly exorbitant spending proposals without plans to pay for them. Then roughly $6 trillion in deficit-financed stimulus approved by Congress in 2020 and 2021 provided policymakers a natural experiment to evaluate the claims proponents of MMT made.

The Internal Revenue Service (IRS) tax code is full of legal ways for high-income Americans to pay less in taxes. Taking a proactive tax-planning approach can help you minimize your taxes both today and in the future. During my nearly 20 years as a West Hollywood financial planner, I often am hired to help people

Competition for top employee talent among corporate rivals and tech startups, along with the stock market decline, is leading some big tech companies to make changes in their stock grants. The goal is to make their equity awards more effective for recruiting, retaining, and motivating employees. While grants at these tech giants are still more

Internal Revenue Service computers keep spitting out perplexing letters and notices to taxpayers, and today the agency announced that it’s going to stop the machines, at least temporarily, in an effort to help taxpayers and tax pros. The 2022 tax season kicked off on January 24 for filing 2021 tax year returns, but millions of taxpayers

Don Lubick, who passed away yesterday at age 95, was an extraordinary public servant who was among the last living links to the beginnings of modern tax policy. I do not believe anyone served longer in senior Treasury tax policy positions than Don. Remarkably, he began his government career in the Kennedy Administration and concluded

Two years into the pandemic, states are flush with cash, a vastly different picture than the 20 percent revenue decline suffered by states in the early days of the pandemic. But today’s often double-digit revenue growth is not sustainable. Here are five reasons why state policymakers should proceed carefully despite the temptations of full coffers.

The Internal Revenue Service will have “extraordinarily high” delays again in processing returns, the agency’s National Taxpayer Advocate Erin Collins told Congress today. She cautioned there’s no magic bullet to get the IRS out of a “deep hole” in her appearance before the House Ways and Means Committee Oversight Subcommittee. The IRS is starting the

Tax Notes reporter Jonathan Curry reviews President Biden’s tax policy campaign promises after one year in office and where those proposals, including the Build Back Better Act, stand today. This transcript has been edited for length and clarity. David D. Stewart: Welcome to the podcast. I’m David Stewart, editor in chief of Tax Notes Today International. This week: