While the Agency has big plans for the coming years, Yellen touted a handful of smaller but still ambitious changes that will be implemented in the next filing season. The IRS expects to triple the amount of taxpayers who are assisted in-person support centers, ensure that nearly 80% of callers reach an employee (a jump from around 15%), and enable taxpayers to receive and respond to notices online.
Read More
To fund his $2 trillion infrastructure plan, President Joe Biden has proposed to raise the corporate tax to 28%. According to the New York Times, corporations will be required to pay fifteen years of taxes at the 28% rate. This is an increase from President Trump’s previous tax cuts, which decreased the corporate tax from 35% to 21%. Not all companies will be taxed the same amount, however.
Read More
Despite usually opening the tax season in late January, the Internal Revenue Service (IRS) delayed the start of the 2020 tax season to February 12, announcing that they would start accepting and processing tax returns then. The deadline for individuals to file their taxes remained on April 15 until a recent announcement from the IRS that the agency is postponing the filing deadline, giving taxpayers an additional month to file their returns. As of now, income tax and payments will be due on May 17. While this new change applies to individual taxpayers and families, including people paying self-employment tax, this relief does have an exception—it will not apply to the estimated tax payments that many small business owners owe for the first quarter of 2021.
Read More