Tax Updates August 11

Five-Year Plan Issued

The IRS has released a new five-year Strategic Plan. This Plan will serve to help guide the agency’s programs and operations, and meet the needs of taxpayers and others in the tax community. Their four goals include providing quality service, fostering a diverse and inclusive workforce, enforcement, and transformation of operations to be more resilient, agile, and responsive.

Flood Victims Eligible for Relief

Storm victims in parts of Kentucky and Missouri now have until November 15, 2022, to file various tax returns and make payments. Those who had extensions to file their returns by October 17, 2022, will now have until November 15 to file. This also applies to quarterly estimated payments due on September 15, and payroll and excise taxes due October 31. More information is available on the Disaster Assistance and Emergency Relief for Individuals and Businesses page, and an updated list of localities eligible for relief is always available on the disaster relief page.

Educator Expense Deduction Increased

The IRS is reminding teachers and other educators that they may be able to deduct up to $300 of out-of-pocket classroom expenses for 2022 when they file their tax return next year. This is the first increase since the deduction was enacted in 2002. The limit will continue to rise in $50 increments in future years based on inflation adjustments. The deduction is available to K-12 educators, instructors, counselors, principals and aides who work at least 900 hours in a public or private school during the school year. Books, supplies, classroom materials, computer equipment, software and services, professional development courses, and COVID-19 protective items all qualify for the deduction. 

Trucker Filing Date Approaches

The IRS is reminding those who register large trucks and buses that it’s time to file Form 2290, Heavy Highway Vehicle Use Tax Return. The IRS encourages using e-file and filing before the deadline of August 31, 2022, for vehicles first used in July of this year. Operators of vehicles with a taxable gross weight of 55,000 pounds or more are subject to paying the tax and filing the form, although those operating vehicles that travel below a certain number of miles are not subject to the tax (they are still required to file the form however). More information is available at the Trucking Tax Center.