IRS: Amended Returns

November 28, 2022By Smeriglio Associates LLCNews

Some taxpayers may try to reduce the risk of accuracy-related tax penalties by filing a qualified amended return. These returns are filed after a regular return’s due date, but generally before the IRS contacts the taxpayer about conducting an audit. (Other rules apply for pass-through entities.) New regulations designed to ease the process for large … Read More

IRS: Hiring Representatives

November 26, 2022By Smeriglio Associates LLCNews

The IRS is set to hire a new wave of customer service reps, to end staff shortages and ensure taxpayers can access the help they need. That’s one of the key purposes of the $80 billion allotted to the agency as part of the Inflation Reduction Act. “If the IRS does not make significant changes, … Read More

U.S. District Court – Student Debt

November 25, 2022By Smeriglio Associates LLCNews

A U.S. District Court in Texas ruled on Nov. 10 that President Biden’s student loan debt relief plan is unlawful. On Aug. 24, 2022, Biden announced a student loan forgiveness plan that further extends the suspension of collection actions and wage garnishment. It also allows for a certain amount of debt forgiveness for eligible individuals … Read More

Adopting a child? Bring home a tax break too

November 24, 2022By Smeriglio Associates LLCNews

Two tax benefits are available to offset the expenses of adopting a child. In 2022, adoptive parents may be able to claim a credit against their federal tax for up to $14,890 of “qualified adoption expenses” for each child. This will increase to $15,950 in 2023. That’s a dollar-for-dollar reduction of tax. Also, adoptive parents … Read More

IRS: 2023 Focus Guide

November 24, 2022By Smeriglio Associates LLCNews

The IRS Independent Office of Appeals has come under some criticism, most recently by members of the American Institute of Certified Public Accountants. But Appeals claims it’s “taking important steps to expand communications with external stakeholders and to improve taxpayer access.” It has just released its fiscal year 2023 Focus Guide, which provides details on … Read More

How inflation will affect your 2022 and 2023 tax bills

November 23, 2022By Smeriglio Associates LLCNews

The effects of inflation are all around. You’re probably paying more for gas, food, health care and other expenses than you were last year. Are you wondering how high inflation will affect your federal income tax bill for 2023? The IRS recently announced next year’s inflation-adjusted tax amounts for several provisions. Some highlights Standard deduction. … Read More

IRS: Outgoing Commissioner Comments

November 23, 2022By Smeriglio Associates LLCNews

Outgoing IRS Commissioner Charles P. Rettig remains optimistic about the agency’s opportunities to implement transformational changes over the next decade. Rettig said he’s confident that funding provided by the Inflation Reduction Act will be used to accelerate new online features, explore artificial intelligence projects and expand community outreach. At the same time, he added, the … Read More

IRS: Retirement Accounts and QCD

November 22, 2022By Smeriglio Associates LLCNews

Distributions from a traditional Individual Retirement Account (IRA) are generally taxable when received, though exceptions exist. For charitably inclined taxpayers who are at least 70½ years old, one tax-favored exception is the qualified charitable distribution (QCD). A QCD is a nontaxable distribution made directly by an IRA’s trustee to organizations that are qualified to receive … Read More