Entries by admin-wxc

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IRS simplifies penalty relief, introduces automatic process for eligible taxpayers

WASHINGTON — The Internal Revenue Service today announced a new automatic process to provide penalty relief for taxpayers with a history of filing and paying on time, reducing the need for them to request assistance. The new Automatic Exemption from Penalty will replace the long-standing First Time Abate administrative relief and is designed to simplify […]

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Safe harbor for contributions to Trump Accounts under the Working Families Tax Cuts

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued Revenue Procedure 2026-25 PDF providing a gift tax reporting safe harbor for certain contributions to Trump accounts created under the Working Families Tax Cuts. Under this safe harbor, if certain requirements are met, contributions made by individual donors to Trump accounts in […]

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U.S. States signed up to participate in the federal scholarship tax credit program

WASHINGTON — The Internal Revenue Service announced that 27 states have elected to participate in the Federal Scholarship Tax Credit (FSTC) program, which enables eligible taxpayers to claim a federal tax credit for qualified contributions to Scholarship Granting Organizations (SGOs) providing scholarships for qualified elementary and secondary education expenses. For taxpayers to claim the tax credit […]

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IRS announce intent to issue proposed regulations for tax-exempt organization

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued Notice 2026-36 PDFannouncing intent to issue proposed regulations addressing the tax on excessive compensation and excess parachute payments to employees of tax-exempt organizations under the One, Big, Beautiful Bill. “The new law strengthens the accountability of tax-exempt organizations by expanding tax compliance […]

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Taxpayers can now view and submit Trump Account elections in their IRS Individual Account

WASHINGTON — The Internal Revenue Service today announced new features in IRS Individual Accounts that allow taxpayers to view and submit Trump Account elections, making it easier to invest in these tax-advantaged accounts. Through IRS Individual Account, taxpayers can securely access their tax information and complete common tasks online, including: View the latest submission status of […]

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Tens of Millions of Taxpayers May Be Eligible for Significant Tax Refunds

Tens of millions of taxpayers may be entitled to refunds or abatements of penalties and interest that the IRS assessed during the nearly 3.5-year COVID-19 federal disaster period. However, this relief will not happen automatically. To protect their rights, most taxpayers must file a claim for refund – generally on or before July 10, 2026. […]

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Interest Income Tax Rate: The Kiddie Tax on Children’s Interest Income

If your child earns interest from a custodial account or savings bonds, the tax treatment depends on the amount. Under the most recently published IRS figures, a child’s first $1,350 of unearned income (interest, dividends, and capital gains combined) is untaxed, the next $1,350 is taxed at the child’s own rate, and anything above $2,700 […]

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Treasury Department to deposit $1,000 into the account of each eligible child

WASHINGTON — The Department of the Treasury and the Internal Revenue Service today issued proposed regulationsproviding guidance regarding the contribution pilot program for Trump Accounts, which are a new type of traditional individual retirement account for eligible minors. Trump Accounts and the Trump Account Contribution Pilot Program were established under the Working Families Tax Cuts […]