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 […]

INCREASED THRESHOLD FOR RETIREMENT LIMITS

Increased threshold for retirement limits. The Internal Revenue Service announced that the amount individuals can contribute to their 401(k) plans in 2022 has increased to $20,500, up from $19,500 for 2021 and 2020. The IRS has also issued technical guidance regarding all of the cost of living adjustments affecting dollar limitations for pension plans and […]

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 […]

PRESIDENT TO RAISE TAXES ON THE RICH

President to raise taxes on the rich. Democrats have spent the last several years clamoring to raise taxes on corporations and the rich, seeing that as a necessary antidote to widening economic inequality and a rebuke of President Donald signature tax cuts. Now, under President Biden, they have a shot at ushering in the largest […]

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 […]

FAMILIES FIRST CORONAVIRUS RESPONSE ACT

Families first coronavirus response act. As businesses reopen and employees return to work, we have seen an increase of the coronavirus affecting more employers. The FFCRA mandates paid sick leave and family leave for businesses with 500 employees or less. There is no cost to the employer share of the Social Security and medicare taxes […]

WILL STIMULUS WAIT TWO MORE MONTHS

Will stimulus wait two more months. The latest conflict over America’s next stimulus package doesn’t just have to do with how much it cost or what it contains.  The conversation, just days before the election has turned into whether a package is needed at all before the election, as politics has entered the fray. Senate […]

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 […]

MILLIONS HIT WITH SURPRISE TAX BILL

Millions hit with surprise tax bill. With all the campaign rhetoric about tax reform, tax relief for the middle class, it has come to the attention of many tax companies, that many exceptions exist to the tax law, and many Americans are getting hit with an actual tax increase, not a tax refund. This is […]