IRS AND TREASURY ON SECTION 1256 CONTRACTS

IRS and Treasury on section 1256 contracts. The IRS and Treasury put out information to further clarify Section 1256 mark to market rules, defining foreign currency contracts. It had a lengthy preamble, which noted that other types of contracts may be rules by Section 1256, which covers, not just foreign currency contracts, but a variety […]

WHO MUST PAY ESTIMATED TAXES IRS

Who must pay estimated taxes IRS. The IRS put out bulletin IR-2022-101, in an effort to help the public better understand who needs to pay estimated taxes, how to pay them, and when to pay them. Additional information beyond what is here, is available at the IRS website IRS.GOV Who must pay estimated tax. Individuals, […]

IS PRESIDENT BIDEN INCREASING TAXES OR NOT

Is President Biden increasing taxes or not. During the campaign trail, then candidate Biden promised a multitude of benefit s for the middle class, due to what he saw as a nation that was slipping into a two tiered system of the have’s and have not’s. He promised not to tax anyone with an income […]

BIDEN WANTS MORE TAXES ON RICH

Biden wants more taxes on rich. President Biden stated when he ran for office that he wanted to add additional taxes to anyone earning over $400,000 a year. As President he has stuck to that promise, and also the promise to tax Corporate America more, to pay for programs designed to lift up the lagging […]

WILL CONGRESS TAX CRYPTO

Will congress tax crypto. With the large stimulus proposals passed by both the Trump and Biden administration’s, its apparent that the deficit has grown enormously during the Covid health crisis. Even though this is a once in a century event, and usually government intervention is needed for such things, economists have put out warnings about […]

ADVISORY COMMITTEE RELEASES ANNUAL REPORT

Advisory committee releases annual report. The Electronic Advisory Committee released its annual report to Congress, featuring recommendations that focus on the prevention of identity theft and refund fraud. The ETAAC is a public forum whose members work closely with the Security Summit, a joint effort of the IRS, state tax administrators and the nation’s tax […]

TAX CHANGES IF BIDEN WINS

Tax changes if Biden wins. Joe Biden has called for rolling back a lot of the Tax Cuts and Jobs Act, which trimmed tax rates. He has proposed raising income taxes and Social Security Taxes on wages over $400,000. Long term capital gains and qualified dividends would be subject to ordinary income taxes -39.6%- for […]

GUIDANCE ON NOL CARRYBACK ADJUSTMENTS

Guidance on NOL carryback adjustments. The has provided guidance on how taxpayers who want to elect to waive or reduce the new provision requiring taxpayers with net operating losses (NOLs) arising in tax years beginning in 2018, 2019, and 2020 to carry them back five years. (Rev. Proc. 2020-24) The IRS also extended the deadline […]

METHODS FOR AGRICULTURAL COOPERATIVES

Methods for agricultural cooperatives. In a Internal Revenue Procedure, the IRS provided methods of calculating W-2 wages for purposes of Sec. 199A(g)(1)(b)(1), which limits the amount of a deduction available to specified agricultural or horticultural cooperatives. The deduction is substantially similar to the domestic production activities deduction under former Sec. 199, which was repealed by […]

IRS PLANS TO HIRE SEVENTEEN HUNDRED

IRS plans to hire seventeen hundred. With a cash infusion and a new strategic plan, the Internal Revenue Service is planning to hire some 1,700 full time customer service representatives as it implements the new tax law, its acting chief told the National Association of Enrolled Agents, a group of certified tax advisors. Acting Commissioner […]