CONTROVERSY OVER TAX CUTS AND JOBS ACT

Controversy over Tax Cuts and Jobs Act. When then President Trump passed the Tax Cuts and Jobs Act, which gave 85% of the tax cuts to the wealthiest 5% of Americans, not a single Democrat voted for the bill. But Trump wanted to deliver for the donors who gave to him massively and got him […]

ESTATES CAN ELECT LATE PORTABILITY OPTION

Estates can elect late portability option. The IRS issued revenue procedure 2022-32 that allows estates to elect “portability” of a deceased spousal unused exclusion exclusion amount as much as five years after the decedent’s date of death. Estates of decedents dying after Dec. 31, 2010, who are survived by a spouse, if not required to […]

IRS BLAME GAME FOR DESTRUCTION OF RETURNS

IRS blame game for destruction of returns. In a somewhat surprising statement, the IRS stated it had destroyed nearly 30 million unprocessed information returns because its “antiquated technology” forced it to dispose of the paper documents and vowed to process all such information returns that it received in 2021 and 2022. The IRS statement was […]

IRS FORMS DESTRUCTION PART TWO

IRS forms destruction part two. The Tax Professional community was shocked to learn that the IRS had destroyed nearly 30 million information return. Net Operating Losses and Carry Forwards cannot be determined without certain information, and those particular Information returns will create a nightmare for millions of taxpayers down the road. The Tax Inspector General […]

WHEN AND HOW TO PAY ESTIMATED TAXES

When and how to pay estimated taxes. Payments are divided into four payment periods. Yet, some taxpayers may find it easier to pay their estimated taxes weekly, bi-weekly or even monthly. Alternative payment periods are allowed if enough tax is paid by the end of each payment quarter. The easiest way to make your estimated […]

IRS’s FACTA ENFORCEMENT FELL SHORT

IRS’s FACTA enforcement fell short. As part of the new law P.L. 111-147, the Hiring Incentives to Restore Employment Act, which was passed in 2010, the Joint Committee on Taxation estimated it would bring in an additional $8.7 billion in revenues over the following 10 years, when it was passed in 2010. So the IRS […]

BIDEN WANTS IRS TO DRIVE HIS RECOVERY

Biden wants IRS to drive his recovery. As the President moves his Covid recovery through the IRS, the nation’s tax collector will take on an expanded role as comptroller of the social safety net, delivering billions of dollars in stimulus payments to millions of American households. But the missions threatens to stretch the agency between […]

IRS CRACKDOWN TO GET REVENUE

IRS crackdown to get revenue. With the Biden Administration spending so much to combat the impact of the economic disaster from the Covid health crisis, one part of the plan has been to infuse the Internal Revenue Service with more funds, to go after those who owe back taxes and those who have not filed […]

TRUMP AND THE PAYROLL TAX CUT

Trump and the payroll tax cut, President Donald Trump’s blitz of executive orders includes a promise of tax relief for workers, but policy experts say the White House has left several critical questions unanswered, including who will be responsible for collecting the deferred tax and how and when it will need to be paid off […]

RULES FOR CLOUD AND DIGITAL CONTENT

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Rules for cloud and digital content. The IRS proposed regulations 130700-14, to clarify how to classify transactions involving digital content and cloud computing. The new rules are designed to help taxpayers decide whether an electronic commerce transaction is a sale, lease, license, or provision or services when applying various international provisions of the Code, such […]