IRS Updates

IRS Updates End of August

Interest Rates to Increase The IRS has announced that interest rates will increase again, beginning October 1, 2022. Individuals will see an increase of 1% as compared to the quarter that began in July, with 6% as the rate for underpayments (taxes owed but not yet paid) and overpayments (payments made in excess of the […]

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 […]

Tax Updates Mid July

ETAAC Submits Report to Congress The Electronic Tax Administration Advisory Committee (ETAAC) has released its annual report to Congress, featuring recommendations focused on budget support for the IRS and e-filing enhancements. Their recommendations include providing the IRS with multi-year funding; removing impediments to e-filing with appropriate security features, consent, and acknowledgements; promoting the use of […]

IRS Updates End of June

Expanded Voice Bot Assistance To help improve taxpayers’ experiences with the department, the IRS has expanded the voice bot capabilities of their customer service phone lines. Now, in addition to general and procedural answers to Economic Impact Payment (EIP) or Advance Child Tax Credit queries and other toll-free lines, voice bots will be able to […]

Tax Updates End of May 2022

Interest Rates Increase The IRS has announced that interest rates will increase for the third calendar quarter of the year, beginning July 1, 2022. The rates will be: 5% for overpayments (4% in the case of a corporation). 2.5% for the portion of a corporate overpayment exceeding $10,000. 5% for underpayments. 7% for large corporate […]

Tax Updates Mid May

Be Prepared For Disaster Ahead of hurricane season, the IRS is reminding taxpayers to create or review their emergency preparedness plans, including protecting important tax-related information. The following tips are advised: Protect documents – original tax returns, birth certificates, titles and insurance policies should be kept in waterproof containers in a secure place. Duplicates or […]

Tax Updates April 27

Properly Withhold for 2022 The IRS is urging taxpayers to use the Tax Withholding Estimator to ensure they’re having the right amount of tax taken out of their earnings. Now that 2021 returns have been completed, workers can use that information to adjust their withholding to more accurately reflect their tax burden. A large refund […]

Tax Updates Mid April

Educator Expense Deduction to Increase For the first time since it was enacted in 2002, the special educator expense deduction limit has increased from $250 per year to $300 per year. The increase begins in 2022, so out-of-pocket classroom expenses for the current year can be claimed in the deduction when filing 2022 federal income […]

Tax Updates End of March

Protect Personal Information The IRS is urging people to stay vigilant in securing their online devices against online scams. Taxpayers and tax professionals can help protect against identity theft and other fraud by safeguarding personal data, keeping personal information private, using strong passwords and secured wireless networks, recognizing phishing emails, and using security software. It […]

IRS Updates February 28

Here are your updates from the IRS this week. Second Quarter Interest Rates Increase   For the first time in more than three years, interest rates are being increased. For the quarter beginning April 1, 2022, the rates will be: 4% for overpayments (3% for corporations) 1.5% for the portion of a corporate overpayment exceeding $10,000 […]