Taxes

Although the stock market had a rough January, if you have been investing for any amount of time, you have likely accumulated some capital gains over the past few years. Many projections for the rest of 2022 point to some positive stock market returns. Earning money on your investments in the stock market is great,

The IRS announced today that it will transition away from using ID.me, a third-party service that uses facial scanning technology, as a requirement for taxpayers to set up IRS online accounts. “The transition will occur over the coming weeks in order to prevent larger disruptions to taxpayers during filing season,” the IRS announcement said. “The

ID.me, the facial recognition technology provider used by the IRS, has a public relations problem on its hands. The controversy stems from its facial recognition methods. In the world of facial recognition technology, the so-called 1:1 face match, in which a user’s face is matched against a self-provided picture like a selfie, is generally regarded as

Congress has been demanding action from the IRS and the IRS has been acting, albeit perhaps not in the way Congress would prefer. On the same day that almost 200 House members sent a bi-partisan letter requesting specific measures for taxpayer relief to the IRS, a mostly Democratic coalition of U.S. Senators did the same.

Avoid wash sale losses and the $3,000 capital loss limitation and qualify for a 20% QBI deduction. The most significant problem for investors and traders occurs when they cannot deduct trading losses on tax returns, significantly increasing tax bills or missing opportunities for tax refunds. Investors are stuck with this problem, but business traders with

At this point it should not be news to taxpayers that the last two filing seasons have been hard on tax professionals and that this season is not showing any signs of improvement. Still, it’s tax season and taxpayers need to be able to communicate with their tax professionals to ensure that their returns are

As he takes over as New York’s new mayor, Brooklyn Democrat Eric Adams faces both immediate and longer-term economic challenges.  How he copes with them will say a lot about the future of New York, and by extension America’s cities.  Adams is only the second Black mayor in the city’s history. He ran as a working-class candidate

The filing season recently began, and with it the public pleas intensified for the IRS to change, at least temporarily, its notice, collection, and penalty procedures. The agency recently conceded a bit by halting some automatic notices, but what it might do about penalties is still an open question. Balancing the burdens shifted to taxpayers because

Today’s Social Security column addresses questions about taking spousal benefits early before delayed retirement benefits, whether conversion to childhood disability benefits is automatic and switching to spousal benefits after taking early retirement benefits. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security Planning, Inc. See more

Robert Goulder of Tax Notes talks with Jenny Webster and her legal counsel, Filippo Noseda, about her lawsuit before the United Kingdom High Court challenging the Foreign Account Tax Compliance Act.  This transcript has been edited for length and clarity. Robert Goulder: Hello, I’m Bob Goulder, a contributing editor with Tax Notes. Welcome to the January edition of In

Yesterday the IRS updated its Fact Sheet (FAQ) on the Child Tax Credit (CTC) and the Advance Child Tax Credit (ACTC) with additional information on reconciling the credit on 2021 tax returns. The IRS took this step after acknowledging that the letter (Letter 6419) it had been encouraging taxpayers to rely on to accurately reconcile

Max Dilendorf of the Dilendorf Law Firm PLLC discusses non-fungible tokens, or NFTs, and the related tax planning and compliance issues.  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: breaking down NFTs. As cryptocurrency has risen

Today’s Social Security column addresses questions about published maximum Social Security benefit rates, payment of delayed retirement credits when filing after full retirement age and how spousal benefit rates are calculated. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security Planning, Inc. See more Ask Larry

Judge James Selna of the United States District Court for the Central District of California has given another win to low income housing credit aggregator Alden Torch in Centerline Housing Partnership V Palm Communities. As I read the filings I may need to find a substitute for the “a” word as in one of the final

After issuing a series of taxpayer-friendly rulings, the IRS recently issued guidance limiting the scope of section 1202. Section 1202 is the tax provision that enables taxpayers to exclude capital gain on the sale of qualified small business stock (QSBS) if certain conditions are met. As summarized in a prior article, section 1202 allows individuals

The Tax Cuts and Jobs Act introduced a dividends received deduction (DRD) in new section 245A. Among its provisions was a disallowance of credits or deductions for foreign taxes paid on dividends eligible for the DRD. New regs clarify the operation of the disallowance. Published on January 4, T.D. 9959 includes new reg. section 1.245A(d)-1(a)–(e). The rules disallow a foreign tax

Overlooked but simple UK VAT reliefs that can ease your cash flow Organizations can always benefit from an improved cash-flow position and given the current pressures on businesses arising from COVID-19 and disruptions to supply chains, this year is no exception. This article provides a reminder of some well established but often overlooked UK VAT

When it comes to celebrity gossip Charley Sheen, who I mainly remember as the star of Two And A Half Men, is in a class by himself. You could for example look up the Charlie Sheen Effect, if that sort of thing interests you. At any rate, given all his other issues, it is not shocking that

The qualified small business stock (QSBS) exclusion generally provides for a full or partial exclusion of capital gain realized on the sale of QSBS. If the requirements are met, then taxpayers can exclude from gross income capital gain in an amount equal to the greater of (i) $10 million or (ii) an annual exclusion of

Topline Key Facts The U.S. economy grew 6.9% in the fourth quarter—despite surging inflation—thanks to an uptick in consumer spending, exports and private investments, the government said Thursday. For the full year, U.S. GDP grew 5.7%—its fastest pace since 1984, but the American public remains split on whether economic growth will increase or decrease in