The IRS has announced that it will waive penalty fees for taxpayers who owe less than $100,000 in back taxes for the years 2020 and 2021. This relief will benefit around 4.6m individuals, businesses, and tax-exempt organizations, totaling about $1bn. The decision to forgive the failure-to-pay penalties is attributed to[…]
Read More »The IRS increased the optional standard mileage rate used to calculate the deductible costs of operating a vehicle for business to 67 cents per mile driven, up 1.5 cents from 2023. The increased rate is effective as of Jan. 1, 2024 (Notice 2024-08). The notice, released Thursday, sets the 2024[…]
Read More »Retirement accounts aren’t the only kind of tax-advantaged savings vehicles. Health Savings Accounts (HSAs) allow you to use pre-tax dollars to pay for qualified health expenses, and in effect, lower your taxable income. In 2022, the IRS allows contributions up to $3,650 to an HSA and $7,300 for families. Those[…]
Read More »Maxing out your retirement account(s) is the first step to limiting your tax liability. Contributions made to 401(k) accounts come out of an employee’s paycheck before taxes are taken out, lowering their taxable income. Similarly traditional IRA contributions are tax deductible and lower a person’s tax liability. In 2022, the[…]
Read More »The IRS again delayed the effective date of the $600 threshold for Form 1099-K reporting for third-party settlement organizations and will treat 2023 as another transition year, the Service said Tuesday in Notice 2023-74. When the IRS does start to implement the new threshold, enacted by the American Rescue Plan[…]
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