The IRS has waived required withdrawals for some taxpayers who inherited retirement accounts since 2020, but experts warn it may not benefit heirs. The agency has extended relief for certain heirs facing changes in required minimum distributions (RMDs) rules for inherited retirement accounts, a move that experts argue may create confusion and potential financial risks.… Read More

With the recent conclusion of Tax season, IRS Commissioner Danny Werfel stated it was one of the best in years, attributing improvements to increased funding from the Inflation Reduction Act. Enhancements included expanded hours at walk-in sites, assistance to 170,000 more taxpayers in person, and a surge in IRS website visits, notably for the “Where’s… Read More

The IRS has alerted wealthy taxpayers to steer clear of three potential tax schemes perpetrated by “dishonest promoters and shady tax practitioners.” These scams involve art donations, where promoters advise taxpayers to purchase art at discounted prices, artificially inflate its value, and claim large charitable contribution deductions; Charitable Remainder Annuity Trusts (CRATs), where promoters encourage… Read More

The IRS issued guidance reminding taxpayers, including self-employed individuals, retirees, investors, businesses, and corporations, about the upcoming April 15 deadline for first-quarter estimated tax payments for the 2024 tax year. Since income taxes operate on a pay-as-you-go basis, individuals without taxes withheld are legally required to pay taxes as income is earned throughout the year.… Read More

This week, the IRS announced that nearly 940,000 individuals nationwide have unclaimed tax refunds for the 2020 tax year, with a looming deadline of May 17 for submitting their tax returns. Estimated at over $1 billion, the average median refund for 2020 stands at $932. IRS Commissioner Danny Werfel stressed the urgency, urging taxpayers not… Read More

The IRS has launched its annual Dirty Dozen list, cautioning taxpayers about evolving phishing and smishing scams aimed at stealing sensitive taxpayer data. With email and text scams persisting, the IRS and its Security Summit partners emphasize the need for continued vigilance among individuals and businesses. These scams often involve fraudsters coercing recipients into clicking… Read More

With tax season underway, the IRS has already issued over 43 million refunds totaling nearly $135.3 billion, with the average refund standing at $3,145 as of March 8, up from $2,972 compared to the same period in 2023. However, this average might fluctuate as the IRS anticipates receiving millions more returns. Despite expectations for a… Read More

As outlined in his 2025 fiscal-year budget, President Joe Biden aims to make tax-free student loan forgiveness at the federal level permanent, following its enactment through the American Rescue Plan Act of 2021. Advocates, including Betsy Mayotte from The Institute of Student Loan Advisors, support this move, citing the significant stress borrowers face over potential… Read More

President Joe Biden’s State of the Union address last Thursday unveiled tax proposals aimed at the wealthy and large corporations, alongside new tax credits. Biden highlighted the urgency to make health insurance premiums permanent, proposing $800 annual tax credits per person to reduce healthcare premiums. Also, he emphasized the need for higher taxes on the… Read More

The IRS has upgraded its “Where’s My Refund” tool, offering taxpayers detailed messages conveying refund status in plain language, seamless accessibility through mobile devices and the IRS2Go app, and notifications indicating whether additional information is required by the IRS. These improvements address previous limitations where the tool lacked specificity regarding direct deposit timing or the… Read More