The Treasury and IRS have issued final regulations affecting taxpayers that claim credits or deductions for foreign income taxes or claim a deduction for foreign derived intangible income (FDII). The regulations finalize 2020 proposed regulations and address the: Disallowance of a foreign tax credit or deduction for foreign income taxes under Code Sec. 245A(d) Determination of […]
Final Regulations Address Foreign Tax Credit Issues Read More »
The National Taxpayer Advocate (NTA), Erin M. Collins, has released her 2021 Annual Report to Congress. The NTA called the calendar year 2021 the most challenging year taxpayers and tax professionals have ever experienced. The report states that tens of millions of taxpayers experienced delays in the processing of their returns, with 77 percent of individual
National Taxpayer Advocate Delivers Annual Report to Congress Read More »
The IRS (in Notice 2022-5) extended several deadlines related to the low-income housing credit, in response to the continuing coronavirus pandemic and precautions necessitated by new disease variants. The extensions generally apply to deadlines that occur between April 1, 2020 and December 31, 2022, for the: 10-percent test for carryover allocations 24-month minimum rehabilitation expenditure
Deadlines Extended for Low-Income Housing Credit Read More »
Several leading nonprofit organizations, along with the IRS, have joined together to highlight a special tax provision that allows more people to deduct donations to qualifying charities on their 2021 income tax return. This pandemic-related provision allows married couples filing jointly to deduct up to $600 in cash donations and individual taxpayers can deduct up to $300
IRS Highlights 2021 Charitable Tax Benefit Read More »
Those in the manufacturing industry bring vital products and jobs to Connecticut. Most were hit hard by the pandemic as well. As you start thinking about your 2021 taxes, don’t miss out on a variety of tax incentives available to manufacturers. While you may not qualify for all of them, it is well worth your
Tax Incentives Available to Manufacturing Companies Read More »
Back in mid-December, we sent an alert encouraging you to keep two letters from the IRS since they will be important when we start preparing your 2021 tax returns. It turns out that one of those, Letter 6419 – Advance Child Tax Credit Payments, which should include the amount of payments you received, may contain
Double Check Your Advance Child Tax Credit Payment Letter for Accuracy Read More »
If you have tried to call the IRS any time in the last year or so, our bet is that you are still on hold. With all the changes in the tax laws over the last two years, its dated technology and myriad other factors, the agency simply doesn’t have the money or people to meet
IRS Makes Case For More Funding Read More »
If you are considered a high earner, this is not the year to play with your taxes. (Not that we ever recommend doing that!) The Internal Revenue Service is keeping the pressure on high income taxpayers who do not file their taxes as well as other high wealth taxpayers who may otherwise be hiding their earnings
IRS Keeping an Eye on High Earners Read More »
The IRS is reminding and encouraging taxpayers to better protect themselves starting in January by joining the Service’s Identity Protection Personal Identification Number (IP PIN) program. Recent changes to the program make it easier for more taxpayers to join, and the fastest and easiest way to receive one is by using the Get an IP PIN
Taxpayers Encouraged to Get IP PIN Read More »
Mileage rates for 2022 are slightly up from those of 2021 due to inflation and other factors. These rates can be used to compute deductible costs of operating vehicles for business, medical and charitable purposes, and some members of the military can also use them to determine moving expense deductions. 2022 Standard Mileage Rates The
IRS Releases 2022 Standard Mileage Rates Read More »
As 2021 comes to an end, we at Bailey Scarano are getting ready for the upcoming tax season. Keep your eyes open in early January for your paper or electronic tax organizer so you can collect and organize your 2021 tax information. We are ready to help and happy to answer any questions you may
Be on the Lookout! Read More »
While you may not have your 2021 taxes on your mind right now, we do. As we start preparing for tax season before we take some time off for the holidays, we wanted to make sure you were aware of two important letters coming from the IRS in January. Letter 6419 – Advance Child Tax
ALERT: Make Sure You Keep These 2 IRS Letters Read More »