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IRS Blasted for Destroying Millions of Information Returns
The Internal Revenue Service is coming under criticism from Congress and the American Institute of CPAs for destroying an estimated 30 million paper-filed information returns to cope with its backlog last year, with one lawmaker even calling for the IRS commissioner to be replaced immediately. The Treasury Inspector General for Tax Administration released a report on the processing of business tax returns, noting that the IRS decided ...
Read MoreIRS Increases Mileage Rate for Remainder of 2022
WASHINGTON — The Internal Revenue Service today announced an increase in the optional standard mileage rate for the final 6 months of 2022. Taxpayers may use the optional standard mileage rates to calculate the deductible costs of operating an automobile for business and certain other purposes. For the final 6 months of 2022, the standard mileage rate for business travel will be 62.5 cents per mile, up 4 cents from the rate effective at ...
Read MoreStudy: 90% of Organizations Say Ransomware Impacted Their Ability to Operate
Among private sector companies, 86% of those surveyed by Sophos said that a ransomware attack caused them to lose business or revenue. A successful ransomware attack can devastate an organization, resulting in lost or leaked data, financial pain, business and operational downtime, loss of revenue, and even reputational damage. A new report from security firm Sophos looks at the effects of ransomware on businesses and offers a few tips ...
Read MoreIRS to Permit Reliance on Frequently Asked Questions
On Oct. 15, 2021, the IRS announced changes that allow taxpayers to argue reliance on Service-issued frequently asked questions pages (FAQs) in seeking relief from penalties that provide a reasonable-cause exception (see IRS News Release IR-2021-202). While taxpayers will still have to show that such reliance was in good faith and was reasonable based on all the facts and circumstances, the announcement represents a new era in ...
Read MoreAuto Depreciation Limits Leap with Inflation
The IRS issued sharply higher new depreciation limitations for passenger automobiles, reflecting inflation of vehicle prices in the past year. These limits are updated annually for inflation according to the automobile component of the chained consumer price index for urban consumers. Rev. Proc. 2022-17 contains the Sec. 280F(a) inflation-adjusted dollar limitations on depreciation deductions for passenger automobiles (which includes trucks and ...
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