As the year wraps up and everyone’s busy before New Year’s Eve, the IRS has one more reminder for those with retirement accounts: Required Minimum Distributions (RMDs). If you’re age 73 or older (or turning 73 this year), most tax-deferred retirement accounts — traditional IRAs, 401(k)s, 403(b)s, etc. — require you to take a minimum
As we wrap up another year and prepare our checklists for 2026 tax season, it turns out the IRS has been working on its own New Year’s resolutions. And no, it’s not planning to “eat healthier” — but it is promising to be more forgiving. Thanks to the One Big Beautiful Bill Act (OBBBA), one
As the interest rates for money market funds are over 5%, the estimated tax penalties that the tax authorities charge if no payment was made when due and other cases is around 8%. To avoid having to pay that extra 8%, then, taxpayers should: Make tax payments when due, especially estimated tax payments Review any
On January 10th, 2024, the IRS communicated that will remove/waive failure to pay penalties on unpaid taxes less than $100k for tax years 2020 or 2021. The rational for this removal of penalties is because the IRS suspended sending automated notices during the pandemic so certain taxpayers were not aware of any amounts due for
Yesterday, the IRS announced a penalty relief program for personal and business tax returns related to 2019 and 2020 tax years. To qualify for the relief, the tax returns must be filed by September 30, 2022. We note that there is a first time abatement option granted by the IRS and this additional penalty relief
If you missed the May 17, 2021 deadline, you might have filed an extension and you will be in one of the following scenarios: 1) If an individual taxpayer is owed a refund, there’s no penalty for filing late. If you are getting a refund, file as soon as possible as US taxpayers lose over
