Drake Software blog for tax pros, covering tax, IRS news, and more

IRS Issues Final Regs on SALT Credits

IRS Issues Final Regs on SALT Credits

The Internal Revenue Service has issued its final regulations that require taxpayers to reduce charitable contribution deductions by the amount of any state or local tax credits they receive or expect to receive in return.…

Read more

Large Businesses Often Escape Accuracy Penalty

Large Businesses Often Escape Accuracy Penalty

A new audit shows large-scale businesses are largely drawing a pass if they under-report their income. The examination revealed that few accuracy-related penalties are proposed by IRS examiners in large-business examinations, and if they are, those penalties are generally not upheld on appeal.…

Read more

Tax Bills are in the Mail

Tax Bills are in the Mail

Some of your clients may have found a tax bill when they opened their mailbox this morning. That’s because the Internal Revenue Service began sending CP14 and CP501 Notices to taxpayers who still owe tax for TY 2018.…

Read more

“How Did Your Filing Season Go?” Survey Results

“How Did Your Filing Season Go?” Survey Results

This filing season was the first to feature almost all changes from to the Tax Cuts and Jobs Act—not to mention the new Form 1040 and Schedules 1 through 6. To learn whether these changes had a significant impact on tax professionals, Taxing Subjects surveyed more than 5,000 preparers.…

Read more

IRS Revamps Form W-4

IRS Revamps Form W-4

The Internal Revenue Service has unveiled a revised Form W-4, issuing a draft of the form for 2020. The changes, they say, will make accurate withholding choices easier for employees.…

Read more