News For Your Week Ahead: November 12, 2021

Rob Smith of Point7Seconds joins us to tell us about his upcoming OneNote classes on December 6 and 16th. Save the dates as we will announce further details soon!

Watch on YouTube.

Coming Up: We have two special MSATP TV episodes airing next week. On Tuesday, November 16 at 10 a.m., Julie Weaver of the Maryland Council on Economic Education joins us to discuss their initiatives on financial literacy. On Thursday November 18 at 10 a.m., Tammy Nickels from Wolters Klower will join us to tell us about CCH TaxAware which is a benefit for all MSATP members!

Be sure to Like/Follow us on Facebook so you can catch MSATP TV live every week!

IRS Provides Tax Inflation Adjustments for Tax Year 2022 |IR-2021-219

The IRS announced the tax year 2022 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. Revenue Procedure 2021-45 provides details about these annual adjustments.

For more information, click here.

Homeowners Assistance Fund Payments | Rev. Proc. 2021-47

Rev. Proc. 2021-47 provides guidance on the income tax treatment and information reporting requirements for payments made to or on behalf of financially distressed individual homeowners by certain entities with funds allocated from the Homeowner Assistance Fund (HAF), which was established under section 3206 of the American Rescue Plan Act of 2021, Pub. L. No. 117-2, 135 Stat. 4 (March 11, 2021) (ARP), in response to the coronavirus disease (COVID-19) pandemic.

For more information, click here.

The IRS Financial Report Available on IRS.gov | IR-2021-220

The IRS  published its Financial Report on IRS.gov. This new report provides the American people with a comprehensive view of the IRS’s financial activities as well as the accomplishments of its finance management community.

In fiscal year 2021, the IRS managed more than $4.1 trillion in tax revenue, $1.1 trillion in refunds and $658 billion in unpaid assessments, as well as the resources that support its mission. In addition, Congress and both Administrations entrusted the IRS with $2.4 billion in supplemental funding to support the nation’s recovery from the COVID-19 pandemic.

For more information, click here.

Families Can Now Report Income Changes Using the Child Tax Credit Update Portal | COVID Tax Tip 2021-167

The IRS recently launched a new feature in its Child Tax Credit Update Portal, allowing families receiving monthly advance child tax credit payments to update their income.

Families should enter changes by November 29, so the changes are reflected in the December payment. Once the update is made, the IRS will adjust the payment amount to ensure people receive their total advance payment for the year. For married couples, if one spouse makes the income update, it will apply to both spouses and could impact both spouses’ future monthly advance payments of the child tax credit.

For more information, click here.

Here’s How Businesses Can Deduct Startup Costs from Their Federal Taxes | Tax Tip 2021-166

When starting a business, owners should treat all eligible costs incurred before beginning to operate the business as capital expenditures that are part of their basis in the business. Generally, the business can recover costs for assets through depreciation deductions.

For costs paid or incurred after September 8, 2008, the business can deduct a limited amount of start-up and organizational costs. They can recover the costs they cannot deduct currently over a 180-month period. This recovery period starts with the month the business begins to operate active trade or as a business.

For more information, click here.

Get Ready for Taxes: Easy Steps Taxpayers Can Take Now to Make Tax Filing Easier in 2022 | IR-2021-217

The IRS encouraged taxpayers, including those who received stimulus payments or advance Child Tax Credit payments, to take important steps this fall to help themselves file their federal tax returns in 2022.

Planning ahead can help people file an accurate return and avoid processing delays that can slow tax refunds.

For more information, click here.

IRS Updates 2021 Child Tax Credit and Advance Child Tax Credit Payments Frequently Asked Questions | IR-2021-218

The IRS updated frequently-asked-questions (FAQs) for the 2021 Child Tax Credit and Advance Child Tax Credit Payments to describe how taxpayers can now provide the IRS an estimate of your 2021 income using the Child Tax Credit Update Portal (CTC UP).

These FAQs update the Advance Child Tax Credit Topic A FAQs by adding a new question, question 17 and Topic F FAQs by adding new questions, questions 2 through 6.

For more information, click here.