The Treasury Inspector General for Tax Administration (TIGTA) recently released its final report on Internal Revenue Service (IRS) compliance trends through FY 2018, during which time period U.S. taxpayers filed over 152 million individual and 11.4 million business income tax returns and forms. The IRS collected over $3.4 trillion in revenue, with an all-time high of $59.4 billion in enforcement revenue.
Recent news accounts have claimed that federal taxpayers are receiving smaller tax refunds for the 2018 filing season, implying that their taxes are higher as a result of the 2017 Tax Cuts and Jobs Act. According to research by the Wall Street Journal, however, although refund amounts are indeed lower this year for many individuals, it is not necessarily a result of higher taxes.
The Internal Revenue Service (IRS) recently issued final regulations and related guidance on the new qualified business income (QBI) deduction created by the 2017 Tax Cuts and Jobs Act. Eligible business owners and taxpayers can now deduct up to 20 percent of their qualified business income or real estate investment trust dividends on their federal tax return beginning after December 31, 2017.
The Internal Revenue Service (IRS) recently announced that it will waive the estimated tax underpayment penalty for many taxpayers who did not have sufficient withholding in 2018. The penalty waiver usually applies to taxpayers who paid at least 90 percent of their total liability through estimated payments or federal income tax withholding, but for 2018, this threshold will be lowered to 85 percent.
The Internal Revenue Service (IRS) recently announced the annual inflation adjustments for tax rate schedules and other tax provisions for 2019. Due to the Tax Cuts and Jobs Act, there are important changes to review concerning the standard deduction, rate tiers, minimum essential health coverage penalty, and other items. For the detailed announcement, click here.
The Internal Revenue Service (IRS) has issued additional guidance for taxpayers regarding how the Tax Cuts and Jobs Act will affect filing your 2018 tax returns. The website www.IRS.gov/getready provides information and advice for individuals and families, such as an updated IRS Withholding Calculator, details about refunds, and the new Form 1040.
The Tax Cuts and Jobs Act of 2017 limits the annual federal tax deduction for state and local taxes to $10,000. In response to this limit, some states with higher tax rates (including California) considered programs that would allow taxpayers to characterize tax payments as charitable donations instead.
Through the Tax Cuts and Jobs Act of 2017, taxpayers now have up to two years to file an administrative claim and bring suit for a wrongful levy by the Internal Revenue Service (IRS) where the IRS has already sold the property it levied. This time limit is a significant extension on the previous nine-month time limit and applies to levies made after December 22, 2017, and on or before that date if the shorter time limit hadn't yet expired.
The Internal Revenue Service (IRS) has updated its online withholding calculator to account for the changes to tax calculations caused by the Tax Cuts and Jobs Act. Taxpayers are encouraged to use the updated calculator tool to ensure the correct amount is withheld from their paychecks. To access the tool and additional information from the IRS, click here.
The Internal Revenue Service (IRS) has created a special landing page to share information with tax professionals concerning the effects of the Tax Cuts and Jobs Act of 2017. Click through for the latest press releases, publications, and IRS legal guidance on the changes made by the latest tax reform: www.irs.gov/newsroom/tax-reform