Drake Software blog for tax pros, covering tax, IRS news, and more
The Internal Revenue Service is making a few changes to the application process for Employer Identification Numbers, or EINs. Starting May 13, only those individuals with tax identification numbers…
The Government Accountability Office says a decade of budget and staffing cuts aimed at the Internal Revenue Service have left the nation’s tax collection agency poorly positioned to handle its future mission.…
Taxpayers interested in getting a Chevy Volt don’t have much longer to take advantage of the Qualified Plug-In Electric Drive Motor Vehicle Credit. According to the Internal Revenue Service, General Motors officially hit the 200,000-vehicle threshold that triggers the phase out of the credit.…
In January, the IRS announced it was lowering the threshold for applying the estimated tax penalty from 90 percent to 85 percent. This change was designed to shield taxpayers who were already getting an unexpected tax bill due to tax reform from also owing a penalty. Last Friday, the IRS said they were lowering the threshold once again to provide penalty relief to even more taxpayers.…
Read more about IRS Lowers Withholding Penalty Threshold Again
Abusive trusts, abusive micro-captive insurance shelters and abusive syndicated conservation easements are three variations on the same theme, using existing tax structures to extract rewards the taxpayer doesn’t qualify for.…
Read more about Dirty Dozen: These Tax Scams Leave the Taxpayer Bruised
The Internal Revenue Service has issued a warning to taxpayers and tax preparers not to use frivolous tax arguments as a basis for not paying taxes.…
Read more about Dirty Dozen: Frivolous Tax Arguments Mean Trouble
In recent years, the federal government has tried varying strategies to entice wealthy individuals and corporations to report and retrieve funds squirreled away in offshore accounts.…
Read more about Dirty Dozen: Hiding Funds Offshore is Still a Crime
The Internal Revenue Service is warning taxpayers and tax professionals against improperly claiming various business tax credits, which has become a common tax scam.…
Read more about Dirty Dozen: Avoid Improper Claims for Business Credits
Scammers posing as relief organizations are ready and willing to take your donation for disaster relief—and put it into their pockets.…
Read more about Dirty Dozen: Donate Cautiously to Disaster Relief
Data security has become a very large, and very important, part of what we do in the income tax industry. That’s why it makes sense for every tax office—large or small—to hire a cybersecurity professional to help safeguard the business’ data and the data of their clients.…
