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IRS Launches 2026 Nationwide Tax Forum Online with New Seminars for Tax Professionals

IRS Launches 2026 Nationwide Tax Forum Online with New Seminars for Tax Professionals

IRS Launches 2026 Nationwide Tax Forum Online with New Seminars for Tax Professionals
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IRS Expands Tax Pro Account to Allow Business Client Payments, Enhancing Digital Services

IRS Expands Tax Pro Account to Allow Business Client Payments, Enhancing Digital Services

IRS Expands Tax Pro Account to Allow Business Client Payments, Enhancing Digital Services
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IRS Concludes Most Successful Nationwide Tax Forum, Offering Online Access to Seminars

IRS Concludes Most Successful Nationwide Tax Forum, Offering Online Access to Seminars

IRS Concludes Most Successful Nationwide Tax Forum, Offering Online Access to Seminars
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U.S. Citizens Abroad Face Complex Tax Obligations, Clarified by Expat Tax Rules

U.S. Citizens Abroad Face Complex Tax Obligations, Clarified by Expat Tax Rules

U.S. Citizens Abroad Face Complex Tax Obligations, Clarified by Expat Tax Rules
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IRS and Treasury Issue Guidance on ETF Investment Strategies to Combat Abusive Tax Practices

IRS and Treasury Issue Guidance on ETF Investment Strategies to Combat Abusive Tax Practices

IRS and Treasury Issue Guidance on ETF Investment Strategies to Combat Abusive Tax Practices
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IRS Math and Taxpayer Help Act of 2025 Needs Amendment for Third-Party Reporting Errors

IRS Math and Taxpayer Help Act of 2025 Needs Amendment for Third-Party Reporting Errors

A 2025 law, the IRS Math and Taxpayer Help Act, designed to provide clearer explanations for math error adjustments on tax notices, requires an amendment. The current legislation, effective for notices sent after November 25 of this year, mandates that the IRS specify the line on a federal return where an error occurred and provide a clear deadline for requesting a tax assessment abatement. However, the law does not address incorrect figures reported to the IRS by third parties such as employers, banks, or brokers. This omission means there is no formal process for taxpayers to dispute these third-party figures, assign responsibility for correction, or set a response deadline. The issue is becoming more critical with the advent of digital assets, as brokers began reporting gross proceeds on Form 1099-DA for 2025 sales and will add cost basis for covered assets sold in 2026. Misreporting in these areas can trigger automated IRS notices proposing additional tax, highlighting the need for a defined process to...
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U.S. Treasury and IRS Announce Over 6,500 New Opportunity Zone Designations Nationwide

U.S. Treasury and IRS Announce Over 6,500 New Opportunity Zone Designations Nationwide

The U.S. Department of the Treasury and the Internal Revenue Service (IRS) have announced the designation of 6,576 Qualified Opportunity Zones (QOZs) across all 50 states, U.S. territories, and the District of Columbia. These new designations, effective January 1, 2027, will remain in place for ten years. The initiative stems from President Trump’s Working Families Tax Cuts, which permanently renewed and strengthened the Opportunity Zone tax incentive program. This legislation also introduced enhanced benefits for investments in eligible rural communities and established a process for redesignating zones every decade. Treasury Secretary Scott Bessent stated that these designations aim to direct private investment into overlooked communities, fostering economic opportunity, job creation, and long-term growth. IRS Chief Executive Officer Frank J. Bisignano emphasized that the permanent extension and expansion of QOZs will attract long-term investment into underserved, rural, and economically distressed areas...
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IRS Advises Taxpayers on Preparations for Upcoming Tax Season

IRS Advises Taxpayers on Preparations for Upcoming Tax Season

The Internal Revenue Service (IRS) is encouraging taxpayers to begin preparing for the upcoming tax season by taking several proactive steps. These recommendations aim to streamline the filing process and ensure timely refunds. Key advice includes setting up an IRS Online Account, which allows access to tax records, payment viewing, and the creation of payment plans. Taxpayers are also urged to gather and organize essential documents such as W-2s from employers and 1099s from banks and other payers, typically issued in January. Additionally, end-of-year documents like Form 1095-A, the Health Insurance Marketplace statement, should be kept handy. The IRS also suggests using the Tax Withholding Estimator to ensure adequate tax withholding or to determine if estimated tax payments are necessary before the year concludes. For those with expired Individual Taxpayer Identification Numbers (ITINs) that are required for a U.S. tax return, renewal is advised. The agency emphasizes that electronic filing combined wi...
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IRS Announces Increased Tax Brackets and Standard Deductions for 2027 to Counter Inflation

IRS Announces Increased Tax Brackets and Standard Deductions for 2027 to Counter Inflation

The Internal Revenue Service (IRS) has announced significant adjustments to federal tax brackets and standard deductions for the 2027 tax year. These changes are designed to mitigate the impact of inflation on American workers' paychecks, preventing rising wages from inadvertently pushing earners into higher tax brackets. The IRS will maintain the seven existing individual federal tax rates (10%, 12%, 22%, 24%, 32%, 35%, and 37%), but the income thresholds for each bracket have been increased. For single filers, the 10% rate will apply to taxable income up to $12,800, while the top 37% rate will begin at incomes exceeding $661,375. For married couples filing jointly, the 10% rate covers income up to $25,600, with the highest bracket starting at $793,650. Standard deductions are also increasing across all filing categories, with single filers seeing an increase to $16,600 and married joint filers to $33,200. Additionally, several key tax credits, estate exclusions, and employee benefit caps, such as the Chi...
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IRS Announces Increased Child Tax Credit and Deductions for 2027 Tax Year

IRS Announces Increased Child Tax Credit and Deductions for 2027 Tax Year

The Internal Revenue Service (IRS) has announced new inflation adjustments for the 2027 tax year, which will impact tax returns filed in 2028. These changes include an increase in the Child Tax Credit to $2,300, up $100 from 2026. The Earned Income Tax Credit (EITC) maximum amount will rise to $8,496 for eligible taxpayers with three or more children, an increase from $8,231 in 2026. Additionally, the standard deduction for married couples filing jointly will increase to $33,200, a $1,000 rise from 2026, while single filers will see their standard deduction increase to $16,600. The maximum allowable credit for adoption expenses will also increase to $18,250, with up to $5,280 being refundable. The annual gift tax exclusion will go from $19,000 to $20,000. These adjustments are part of the IRS's annual process to account for inflation across nearly 70 tax provisions, aiming to ensure that taxpayers' buying power is not diminished by nominal income increases pushing them into higher tax brackets.
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IRS Clarifies Tax Deductions for Worthless Personal Loans, Imposing Capital Loss Limitations

IRS Clarifies Tax Deductions for Worthless Personal Loans, Imposing Capital Loss Limitations

The Internal Revenue Service (IRS) has provided clarification on the tax deductibility of personal loans that become worthless, categorizing them as nonbusiness bad debts subject to capital loss rules. According to IRS Publication 550, a loan must be genuine, with a valid and enforceable obligation for repayment, to be considered deductible; informal understandings that repayment may not occur classify the transaction as a gift, which is not deductible. Furthermore, the debt must be entirely worthless, meaning no possibility of future repayment exists, for the deduction to be claimed. Partial worthlessness does not qualify for a deduction. The strongest evidence to support a loan claim includes a signed promissory note detailing the loan amount, interest rate, repayment schedule, and consequences of default, along with documented efforts to collect the debt. Without such documentation, the IRS may deem the transaction a gift, negating any deduction. The deduction must be claimed in the year the debt become...
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IRS Announces Increased Child Tax Credit, Standard Deductions, and EITC for 2027 Tax Year

IRS Announces Increased Child Tax Credit, Standard Deductions, and EITC for 2027 Tax Year

The Internal Revenue Service (IRS) has announced significant adjustments to federal tax brackets, standard deductions, and various tax credits for the 2027 tax year. These changes, which will impact tax returns filed in 2028, are part of the IRS's annual inflation adjustments. For 2027, the maximum Child Tax Credit will increase to $2,300 per qualifying child under 17, with a refundable portion of up to $1,800. The Earned Income Tax Credit (EITC) will see a maximum increase to $8,496 for taxpayers with three or more children. Standard deductions are also rising: $33,200 for married couples filing jointly, $16,600 for single filers, and $24,925 for heads of households. Additionally, the lifetime gift and estate tax exemption will increase to $15.48 million, and the annual gift exclusion will rise to $20,000. These adjustments aim to prevent taxpayers from moving into higher tax brackets solely due to inflation, addressing ongoing affordability concerns for Americans facing rising costs of living.