Last Wednesday, March 26, the Treasury Department issued an interim final rule narrowing the Corporate Transparency Act’s beneficial ownership reporting requirement to apply only to foreign companies. Under the new rule, U.S. businesses are no longer required to report ownership details to the Financial Crimes Enforcement Network (FinCEN), while foreign entities registered to do business… Read More
The IRS reminds retirees that those who turned 73 in 2024 must begin required minimum distributions (RMDs) from IRAs, 401(k)s, and similar retirement plans by April 1, 2025, to avoid potential penalties. While RMDs are typically due by December 31 each year, first-time recipients can delay their initial withdrawal until April 1, but this means… Read More
The IRS announced that over 1.1 million taxpayers have unclaimed refunds for the 2021 tax year, with an estimated total of more than $1 billion. The median refund amount is $781, and eligible taxpayers must file their 2021 tax returns by April 15, 2025, to claim it. Many low- and moderate-income individuals may also qualify… Read More
Former IRS commissioners have raised concerns about tax season disruptions due to the recent layoffs of 6,000 to 7,000 IRS employees, primarily probationary hires. In recent interviews, former IRS commissioners highlighted that these laid off employees had undergone extensive training to improve taxpayer services and revenue collection. These actions could lead to longer wait times,… Read More
On February 19, Florida Gov. Ron DeSantis signaled support for eliminating property taxes, stating on social media that a constitutional amendment—requiring 60% voter approval—would be needed to make the change. While some homeowners welcome the idea, experts warn it could severely impact schools, public safety, and local governments reliant on property tax revenue. State Sen.… Read More
The IRS urges taxpayers to carefully select their tax preparers to safeguard their personal and financial information. As the agency reviews, while most preparers are reliable, some engage in fraud or identity theft. Taxpayers remain legally responsible for their returns, even when using a professional. To avoid scams, individuals should verify a preparer’s credentials, ensure… Read More
The IRS is making progress in reducing delays for tax-related identity theft victims, with processing times improving from a peak of 676 days in FY 2024 to an average of 506 days in FY 2025, according to National Taxpayer Advocate Erin Collins. A targeted effort has further cut wait times to approximately 100 days for… Read More
The IRS is introducing three pilot programs to enhance its alternative dispute resolution (ADR) processes, aiming for faster settlements, clearer communication, and increased accessibility. The programs focus on fast-track settlement (FTS) and post-appeals mediation (PAM), offering taxpayers new opportunities to resolve disputes with the IRS more efficiently. Notable changes include requiring executive approval for denied… Read More
The IRS issued a communication reminding businesses that January 31 is the deadline to file wage statements and certain information returns, such as Forms W-2, W-3, and 1099-NEC, with the federal government and provide copies to recipients. Electronic filing is now required for those submitting 10 or more returns annually, offering a faster and more… Read More
The IRS has issued a reminder that the deadline for the final 2024 quarterly estimated tax payment is January 15, 2025. This payment is crucial for individuals with income not subject to withholding—such as self-employed workers, gig economy participants, and those with investment earnings—to avoid penalties for underpayment. Taxpayers are urged to include all taxable… Read More