Drake Software blog for tax pros, covering tax, IRS news, and more
Most times, businesses pay their employees for the work they do, and set aside a portion of those wages to in turn, pay Uncle Sam. But what if the business has to pay someone who isn’t technically an employee?…
Read more about IRS Reminds Businesses About Nonemployee Compensation and Backup Withholding
The American Rescue Plan, or ARP, excluded up to $10,200 in unemployment compensation from each taxpayer’s taxable income. But some people filed their returns and paid taxes on the full amount of their unemployment benefits before the ARP became law, so the IRS is working to send those taxpayers a refund.…
Read more about Refunds Could Be Issued for Overpayment of Tax on Unemployment
Drake Software for the third year in a row surveyed tax professionals about their experience during filing season. More than 3,000 respondents completed the survey, a group comprised of attorneys, CPAs, EAs, and non-credentialed preparers.…
Read more about Drake Software How Did Your 2021 Filing Season Go? Infographic
The IRS announced that it is now also offering online tax information in Spanish, Chinese (simplified and traditional), Korean, Russian, Vietnamese, Haitian-Creole, and more.…
The Internal Revenue Service has rolled out a new online tool that’s built to help families register for monthly Advance Child Tax Credit payments.…
Read more about New Online Tool Helps Low-Income Families Register for Advance CTC Payments
The American Rescue Plan (ARP) put some sweeping changes in place to help the U.S. tax code deal with the effects of the coronavirus pandemic. To help provide guidance to families and small business who might claim some of ARP’s major credits, the IRS has issued two sets of frequently asked questions or FAQs.…
Read more about IRS Announces FAQs for Childcare and Paid Leave Credits
The Internal Revenue Service says it sent out millions of additional American Rescue Plan (ARP) payments to taxpayers in just a two-week period, pushing the total number of payments issued under the new law to just under 170 million.…
Read more about Nearly 170 Million American Rescue Plan Payments Sent So Far
Congress has passed a number of coronavirus relief packages throughout the pandemic. While the three rounds of Economic Impact Payments are the most famous provision of those legislative efforts, they were technically an advance on the new Recovery Rebate Credit.…
Read more about Millions of Taxpayers to Receive IRS Letter about the Advance Child Tax Credit
It may seem that we just got through with the 2021 income tax season, but there’s already another tax deadline waiting in the wings.…
Millions of Americans paid taxes on their unemployment compensation before learning that an exclusion was introduced by legislation a month into filing season. So, the Internal Revenue Service is now sending some of those taxpayers a refund to satisfy the new law.…
Read more about IRS Refunding Tax Paid on Unemployment Compensation
