On February 15, 2022, the IRS announced Form 14457, Voluntary Disclosure Practice Preclearance Request and Application has been revised, including an expanded section on reporting virtual currency. With the rise of virtual currency, the IRS is cracking down on virtual currency tax reporting.
Category: Tax – Individual/Family
IRS Halts Use of Third-Party Verification Involving Facial Recognition
On Monday, February 7, the IRS announced it will transition away from using a third-party service for facial recognition to help authenticate people creating new online accounts. This transition will occur over the coming weeks in order to prevent larger disruptions to taxpayers during filing season.
Tax Planning: IRS 2022 Limits
Each year, the IRS adjusts tax rates, standard deduction amounts, and other limits to account for tax law updates and cost-of-living adjustments.
Short-Term Capital Gains vs. Long-Term Capital Gains – What’s the Difference?
Child Tax Credit Payouts – What to Expect
KRD Thoughts on the Pending Reconciliation Bill
On August 24, 2021 the House voted to approve the fiscal year 2022 budget resolution that provides reconciliation instructions for the massive human infrastructure bill.
Consolidated Appropriations Act, 2021: Charitable Deduction for Non-Itemizers
For tax years beginning in 2021 only, the Consolidated Appropriations Act, 2021 allows an individual who does not itemize to claim a deduction of up to $300 ($600 in the case of a joint return) for charitable contributions made during the year.
Summary: American Rescue Plan Act of 2021
Congress passes $1.9 trillion bill, sent to and signed by President Biden
Extended Consolidated Appropriations Act Benefits for Individual Taxpayers
The Consolidated Appropriations Act, 2021 (CAA, 2021) was signed into law on December 27, 2020, extending federal income tax breaks that were revised to accommodate the economic impact of the Coronavirus pandemic.
IRS News: CP59 Notices
Earlier this month, the IRS issued notices to about 260,000 taxpayers, stating they haven’t filed their 2019 federal tax return. The IRS refers to these notices as CP59 notices. They are issued yearly to taxpayers who haven’t filed their tax returns from the prior calendar year (Tax Year 2019).