The IRS has announced that eligible victims of Hurricane Sally qualify for federal tax relief. This includes victims in counties of Florida that are designated as federal disaster areas qualifying for individual assistance. They now have more time to make tax payments and file returns. Deadlines for certain other time-sensitive acts also are postponed. The […]

COVID-19 is causing operational delays for the IRS, as it has with many businesses. An IRS official recently acknowledged that the tax agency is experiencing delays in processing paper returns and other mail due to limited staffing. As of Oct. 2, around 5 million pieces of unopened mail (about half of which are tax returns) […]

Do you know someone who isn’t required to file a tax return and hasn’t yet received an Economic Impact Payment (EIP)? The IRS has announced that the deadline to register for an EIP is now Nov. 21, 2020. This new date will provide an additional five weeks beyond the original deadline. EIPs are being sent […]

The IRS has released answers to frequently asked questions about marijuana businesses. For example, one question asks if a taxpayer operating a marijuana business in compliance with his or her state’s laws has the same income and employment tax filing obligations as other businesses. The answer is “yes” even though the federal government considers the […]

The IRS has issued final regulations on the business expense deduction for meals and entertainment. The Tax Cuts and Jobs Act generally eliminated the deduction for expenses related to activities generally considered entertainment or recreation. However, taxpayers may still deduct some business expenses related to food and beverages. The final regs address the disallowance of […]

How does the tax code define “dependent” for tax purposes? The IRS has finalized the definition based on changes brought by the Tax Cuts and Jobs Act (TCJA) for tax years 2018 through 2025. The definition of dependent includes a qualifying relative who meets two tests. The “income test” is met if the individual receives […]

Taxpayers have the right to know what they need to do to comply with the tax laws. “The right to be informed” is included in the IRS’s “Taxpayer Bill of Rights.” The tax agency explains that this means you have the right: to have a clear explanation of the laws and IRS procedures in all […]

Final regulations clarify that the premium tax credit isn’t affected by the suspended personal exemption. The IRS has issued an advance copy of final regs stating that the reduction of the personal exemption deduction to zero for tax years beginning after Dec. 31, 2017, and before Jan. 1, 2026, doesn’t have an effect on an […]