Entries by admin-wxc

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IRS provide penalty relief for tax year 2025

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued guidance providing penalty relief to employers and other payors for tax year 2025 regarding new information reporting requirements for cash tips and qualified overtime compensation under the One, Big, Beautiful Bill. Transition penalty relief for tax year 2025 Notice 2025-62 PDF […]

Treasury, IRS issue guidance on tax benefit for lenders

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued guidance for a new tax benefit for certain lenders that make loans secured by rural or agricultural real property. Notice 2025-71 PDF provides interim guidance that taxpayers may rely on until the Treasury Department and the IRS issue forthcoming proposed regulations. […]

Interest rates remain the same for the first quarter of 2026

WASHINGTON — The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning Jan. 1, 2026. For individuals, the rate for overpayments and underpayments will be 7% per year, compounded daily. The rates are as follows: 7% for overpayments (payments made in excess of the amount owed), 6% […]

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401(k) and IRA limit increases

WASHINGTON — The Internal Revenue Service announced today that the amount individuals can contribute to their 401(k) plans in 2026 has increased to $24,500, up from $23,500 for 2025. The IRS today also issued technical guidance regarding all cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2026 in […]

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Form 1099-K threshold limit reverts to $20,000

WASHINGTON — The Internal Revenue Service today issued frequently asked questions in Fact Sheet 2025-08 PDF regarding the dollar threshold for filing Form 1099-K under the One, Big, Beautiful Bill. The OBBB retroactively reinstated the reporting threshold in effect prior to the passage of the American Rescue Plan Act of 2021 (ARPA) so that third […]

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Penalty relief for remittance transfer providers who fail to deposit excise tax

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued guidance providing deposit penalty relief for the first three quarters of 2026 to remittance transfer providers. Notice 2025-55 PDF provides relief in connection with the new excise tax imposed on certain remittance transfers under the One, Big, Beautiful Bill. Penalty relief […]

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Transition relief for 2025 for businesses reporting car loan interest

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today provided transitional guidance for businesses required to report car loan interest under the One, Big, Beautiful Bill. Notice 2025-57 PDF provides penalty relief and guidance to certain lenders for new information reporting requirements for car loan interest received in 2025 under the […]

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IRS releases tax inflation adjustments for tax year 2026

WASHINGTON — The Internal Revenue Service today announced the tax year 2026 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. Revenue Procedure 2025-32 PDF provides details about these annual adjustments. Notable changes under the One, Big, Beautiful Bill The tax year 2026 adjustments described below […]

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One Big Beautiful Bill: No Tax on Car Loan Interest

New deduction: Effective for 2025 through 2028, individuals may deduct interest paid on a loan used to purchase a qualified vehicle, provided the vehicle is purchased for personal use and meets other eligibility criteria. (Lease payments do not qualify.) Maximum annual deduction is $10,000. Deduction phases out for taxpayers with modified adjusted gross income over […]