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IRS Expands Tax Pro Account to Facilitate Business Client Payments

IRS Expands Tax Pro Account to Facilitate Business Client Payments

IRS Expands Tax Pro Account to Facilitate Business Client Payments

IRS Announces Permanent Charitable Contribution Deduction for Non-Itemizers Starting 2026

IRS Announces Permanent Charitable Contribution Deduction for Non-Itemizers Starting 2026

The Internal Revenue Service (IRS) has reminded individual taxpayers that a permanent deduction for charitable contributions will begin for returns filed next year, specifically for the 2026 tax year. This provision, part of the Working Families Tax Cuts Act, allows taxpayers who do not itemize deductions to claim a deduction for qualifying cash contributions. According to IRS Chief Executive Officer Frank J. Bisignano, this permanent deduction aims to encourage giving by extending a tax benefit to those who typically claim the standard deduction. Starting with tax year 2026, individuals can deduct up to $1,000, and married taxpayers filing jointly can deduct up to $2,000, for qualifying cash contributions made to certain charitable organizations.

IRS Details Penalties for Erroneous Claims for Refund or Credit

IRS Details Penalties for Erroneous Claims for Refund or Credit

The Internal Revenue Service (IRS) imposes a penalty for erroneous claims for refund or credit, as outlined in IRC 6676. This penalty applies when a taxpayer submits a claim for an excessive amount without reasonable cause. The penalty is calculated as 20% of the excessive amount, which is the difference between the amount claimed and the allowable amount for the applicable tax period. Initially, this provision applied to income tax, but it was amended by the One, Big, Beautiful Bill Act to also cover erroneous claims for refund or credit related to employment taxes after July 4, 2025. The penalty may be assessed if there is no reasonable cause for the excessive claim and if the refund is not paid. However, this penalty will not apply to any disallowed portion of a claim that is already subject to an Accuracy-related penalty or a Fraud penalty.

IRS Can Sue Taxpayers for Unpaid Debts After Failed Collection Efforts

IRS Can Sue Taxpayers for Unpaid Debts After Failed Collection Efforts

The Internal Revenue Service (IRS) possesses the authority to sue taxpayers, typically as a last resort when administrative collection efforts, such as liens and levies, have proven unsuccessful. These lawsuits are relatively rare and are usually initiated when the unpaid tax bill is substantial, potentially exceeding $100,000. The IRS may also pursue litigation if it believes the case's publicity could enhance tax compliance or if it needs to reduce the tax assessment to judgment to extend the time available for debt collection. When the IRS decides to sue, the case is referred to the U.S. Department of Justice (DOJ) for litigation, which then files the lawsuit, most often in U.S. District Court rather than Tax Court. The process involves a series of steps, including referral to the DOJ, filing and serving a complaint, the taxpayer's response, discovery, and potentially a trial, culminating in a judgment if the DOJ prevails. Most of these civil tax suits are resolved through settlement before reaching tri...

CLA Czech Republic Prepares for Reintroduction of Electronic Sales Reporting (EET 2.0) in 2027

CLA Czech Republic Prepares for Reintroduction of Electronic Sales Reporting (EET 2.0) in 2027

CLA Czech Republic Prepares for Reintroduction of Electronic Sales Reporting (EET 2.0) in 2027

Tax Identity Theft Poses Significant Threat, IRS Urges Vigilance

Tax Identity Theft Poses Significant Threat, IRS Urges Vigilance

Tax identity theft remains a substantial threat, with criminals using stolen Social Security numbers (SSNs) and personal information to file fraudulent tax returns and claim refunds. The Internal Revenue Service (IRS) processes the first return filed with an SSN, meaning legitimate taxpayers whose information has been compromised may find their e-filed returns rejected as duplicates. In such cases, victims often discover the theft through IRS notices or rejected filings. The IRS reported stopping $7 billion in fraudulent refunds in 2024 and 2025, yet individual cases still slip through. Recovery for victims can be lengthy, with cases handled by the IRS Identity Theft Victim Assistance Unit taking approximately 20 months to resolve during the 2026 filing season, during which refunds are held. Thieves obtain information through various means, including IRS impersonation scams (email, text, phone calls), data breaches, stolen mail, and dishonest tax preparers.

Treasury and IRS Announce New Opportunity Zone Designations for Investment Incentives

Treasury and IRS Announce New Opportunity Zone Designations for Investment Incentives

Treasury and IRS Announce New Opportunity Zone Designations for Investment Incentives

Kainos Exceeds Deutsche Bank Forecasts in First Half, Driven by Workday and Digital Services Growth

Kainos Exceeds Deutsche Bank Forecasts in First Half, Driven by Workday and Digital Services Growth

Kainos Exceeds Deutsche Bank Forecasts in First Half, Driven by Workday and Digital Services Growth

MARA Holdings Sells $1.1 Billion in Bitcoin to Fund AI Infrastructure Expansion

MARA Holdings Sells $1.1 Billion in Bitcoin to Fund AI Infrastructure Expansion

MARA Holdings Sells $1.1 Billion in Bitcoin to Fund AI Infrastructure Expansion

Representative Aaron Bean Introduces Bill for Digital Asset Voluntary Disclosure Program

Representative Aaron Bean Introduces Bill for Digital Asset Voluntary Disclosure Program

Representative Aaron Bean introduced H.R. 9174, the Digital Assets Voluntary Disclosure Program Act, on June 8, 2026. This standalone bill aimed to establish a specific voluntary disclosure program for digital assets. The core concept of H.R. 9174 was later incorporated into a broader digital-asset tax package as Section 502 of H.R. 10357. On September 16, 2026, the House Ways and Means Committee adopted a Chairman’s Amendment in the Nature of a Substitute and favorably reported H.R. 10357 to the House by a vote of 38-5. This proposed legislation seeks to provide a structured pathway for U.S. cryptocurrency investors to resolve past federal tax issues related to unreported digital-asset transactions. The bill, however, has not yet become law, and the proposed Digital Asset Voluntary Disclosure Program is not currently available. It addresses various aspects of digital assets, including cryptocurrency, stablecoins, NFTs, mining, staking, lending, trading, and broker reporting, and outlines different penalty...

Tax Attorney Joshua Odintz to Moderate Panel on Post-Election Tax Policy Outlook for 2027

Tax Attorney Joshua Odintz to Moderate Panel on Post-Election Tax Policy Outlook for 2027

Tax Attorney Joshua Odintz to Moderate Panel on Post-Election Tax Policy Outlook for 2027

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...