WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

 

* JD SUPRA reports that due to the rising cost of gas resulting from Trump’s attack on Iran “IRS Increases Standard Mileage Rate for Second Half of 2026 to 76 Cents per Mile”.

Also (highlight is mine) – “The mileage rate for moving and medical expenses also increased from 20.5 cents per mile to 23.5 cents per mile. The mileage rate for charitable mileage is fixed by statute at 14 cents per mile and has not changed.”

* More good news for taxpayers – “IRS simplifies penalty relief, introduces automatic process for eligible taxpayers” (highlights are mine) –

“AEP applies to eligible original returns beginning with tax year 2025 and 2026 quarterly returns, as well as future tax periods. Taxpayers qualify if they have a history of timely filing the return and paying any tax due in the three prior years (or 12 consecutive quarters for quarterly returns). When taxpayers qualify, penalties are not assessed during processing for:

Failure to file.

Failure to pay.

Failure to deposit.

Taxpayers do not need to take action to receive this relief. If eligible, the IRS will apply AEP and issue a notice confirming that the relief was granted.”

* The TAX FOUNDATIN BLOG celebrated July 4^th by telling us “What 250 Years of Tax History Reveal About the US Tax Code” –

“While most taxes levied in the 18th century are still levied in some form today, the federal government’s reliance on them, the complexity of the tax code, and Americans’ overall tax burdens have shifted considerably.”  

* The IRS reminds us “Marriage means making changes before next filing season”.

* NJ DIGEST tells us “New Jersey Senior Freeze Checks Arrive Soon—Here’s What to Know” -

“New Jersey’s Senior Freeze property tax reimbursement checks start going out this week, with the first wave scheduled for Wednesday, July 15.

The Senior Freeze program reimburses eligible senior citizens and disabled residents for increases in their property taxes or mobile home park site fees on their primary residence. Rather than actually freezing your tax bill, the program locks in your tax amount from the year you enroll and reimburses you for any increases beyond that baseline each year, according to Kiplinger.

Here’s the payment schedule based on when you filed your application:

Filed before May 1: Payment issued as early as July 15, 2026

Filed May 1 – June 1: Payment issued as early as September 1, 2026

Filed June 2 – September 1: Payment issued as early as November 1, 2026

Filed September 2 – October 31: Payment issued as early as December 1, 2026”

ANCHOR benefit payments should begin on September 15^th.  The last two 2024 quarterly STAY NJ payments will be paid in August and November and the first two 2025 payments will be paid in February and May of 2026.

TTFN

WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

 

* Russ Fox tells of his frustration in trying to contact the IRS by phone in"Don’t Call Us” at TAXABLE TALK.

His bottom line (highlight is mine) –

“Meanwhile, the proposed IRS budget features a $1.4 billion cut.  IRS staffing is down by about one-third from early 2025.  As much as I like small government (and I do), the IRS needs to be correctly funded and that means a budget increase, not a cut.  Perhaps one day online services can fully replace humans, but that day isn’t today.  If you’re a taxpayer–and everyone reading this is–complain to your Representatives and Senators.  There are almost certainly areas of the federal budget that can be cut (given the reports of fraud); however, the IRS isn’t one of those today.”

Russ finally got lucky – “The 43rd Try Was a One-Third Success” –

“ . . . to my surprise the 43rd try got me into the queue with a 15 to 30-minute hold time (it ended up being 24 minutes).”

* The F.I. TAX GUY gives us a primer on “ROTH IRA Withdrawals”.

* At the height of my career, I did the tax returns of several Lutheran ministers.  The NATP BLOG helps tax preparers and clergy with “Understanding the minister's housing allowance” –

“Few tax provisions are as unique as the minister's housing allowance. For qualifying clergy, the allowance can provide a valuable income tax benefit. However, the rules are highly specific and mistakes can lead to reporting errors, missed tax savings or unexpected tax liabilities.”

* This just in – “National Taxpayer Advocate issues 2026 mid-year report to Congress” –

“National Taxpayer Advocate Erin M. Collins today released her Fiscal Year 2027 Objectives Report to Congress, highlighting a largely successful 2026 filing season in which the IRS processed nearly 139 million individual tax returns, issued more than 90 million refunds, and successfully implemented extensive tax law changes despite significant operational challenges.”

TTFN

WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

 

FYI a friend sent me this email – “Mailed tax return February 21.  IRS processed it on April 13.  Refund in my checking account and available on April 18.  56 days total from mailing to receiving refund.  Last year it was 51 days.”  The taxpayer obviously requested direct deposit.  If he wanted a paper check he would still be waiting.  I have not heard of any issues with late refunds (where direct deposit was requested).

* The NATP blog tells us “Tens of millions of taxpayers may be eligible for significant tax refunds (Act by July 10)”.

The post explains –

“This issue arises from recent court decisions, including Kwong v. United States (Court of Federal Claims, Nov. 25, 2025) and Abdo v. Commissioner (U.S. Tax Court, 2024).”

“For COVID-19, a federal disaster declaration was in effect from Jan. 20, 2020, through May 11, 2023.”  

“Based on the court’s reasoning in Kwong, filing and payment deadlines were postponed during that entire period, and as a result, tax returns and payments due anytime within that window were not considered late until after July 10, 2023. By the court’s logic, the IRS should not have assessed penalties for late filing or payment during that 3.5-year period, nor charged interest on those amounts.”

If you were assessed, and paid, a penalty for underpayment of estimated tax or late payment of taxes for 2020 through 2023 returns contact your tax professional to see if you could qualify for a refund.

* The NJ Division of Taxation reports –

“We expect to send the second installment of the 2024 Stay NJ benefit on May 15, 2026. Eligible recipients will receive paper checks in the mail.”

TTFN

WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

 

It is very, very important that you get your federal and state GDE (the “E” is extension) in the mail TODAY.  Take the envelope(s) to the Post Office and hand it/them to a postal clerk and watch him/her stamp the postmark date on it/them.

The penalty for late payment of tax is ½ of 1% (.005) per month.  The penalty for late filing is 5% (.05) per month.

* The IRS has released its list of the “Dirty Dozen tax scams for 2026: IRS reminds taxpayers to watch out for dangerous threats”.

* The NATP blog explains “What every client {taxpayer} needs to understand about taxpayer responsibility” –

“The IRS holds the taxpayer legally responsible for the accuracy of their income tax return, even if a professional prepared it.”

* And NATP explains “How to receive the $1,000 Trump {Section 530A} Account deposit”.

* As he does at this time each year Russ Fox is providing his Top Ten list of “Bozo Tax Tips”.

TTFN

WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

 

* The National Association of Tax Professionals (NATP) has prepared a “media backgrounder” outlining several common “Tax myths taxpayers are falling for in 2026”.  

* Hey, NJ, senior homeowners (highlights are mine) –

“The Stay NJ program offers property tax benefits to eligible homeowners aged 65 and older. It reimburses applicants for 50% of their property tax bills, up to a maximum of $13,000, with a 2025 benefit cap of $6,500. To qualify {for 2025 payments send in 2026 – rdf}, you must have owned and lived in a home for the full 12 months of 2025 and have an income below $500,000. . . . . Stay NJ benefits are calculated after ANCHOR and Senior Freeze benefits are determined and are issued quarterly.

And - “We will begin issuing First-Quarter payments for the 2024 Stay NJ Program on February 9, 2026. Eligible recipients will receive their paper checks in the mail.”

* Back to the National Association of Tax Professionals, it provides “Trump 530A Accounts explained for tax professionals” – which also provides useful information for taxpayers.   

* The F.I. TAX GUY provides a guide to help in “Understanding Your Form 1099-DIV”

* The IRS explains “New Schedule 1-A and Form 1040 instructions show how taxpayers will claim important deductions”.

Regarding the section of Schedule 1-A on the new “Senior Deduction” – see my post “Is A Puzzlement”.

TTFN

WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

 

And so it begins – the 2026 tax filing season (for 2025 returns).  I am glad I am retired!

* Did you hear – “National Taxpayer Advocate delivers Annual Report to Congress; finds taxpayer service was strong in 2025 but foresees challenges for taxpayers who encounter problems in 2026”.

One item of note that could cause issues with processing and reviewing 2025 returns (highlight is mine) –

“The IRS started 2025 with about 102,000 employees and finished with about 74,000, a reduction of 27%. Reductions were made in virtually all IRS functions, including Taxpayer Services. . .”

All thanks to the deplorable and despicable so-called Department of Government Efficiency (DOGE) and convicted felon and indicted traitor Trump.

* NATP tells us, “IRS releases FAQs on Executive Order 14247 payment modernization” and provides a summary.

While refunds requested on 2025 returns will be issued via direct deposit –

“For now, mailed payments to the IRS, including checks and money orders, will still be accepted and processed.”

* From the instructions for the 2025 Form 5695 (highlight is mine) -

“Beginning January 1, 2025, if you are claiming the energy efficient home improvement credit for specified property placed into service in 2025, you must include the four-character alphanumeric unique qualified manufacturer identification number (QMID) for each item.”

This number should be provided by the seller of the item.

* The New Jersey 2025 PAS-1 property tax relief application and instructions are now available at the NJ Division of Taxation website.

* The 2025 PA state income tax forms and instructions are finally available online.

TTFN

WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

 

The first BUZZ of 2026!

“IRS announces first day of 2026 filing season” –

“The Internal Revenue Service announced Monday, January 26, 2026, as the opening of the nation’s 2026 filing season.”

Of course, before I retired tax season always began, for me, on February 1^st – when all W-2s were required to have been distributed.  Don't be in a hurry to be the first to file your tax return.  Wait until you have ALL the necessary information returns and other documents.

This IRS release also discusses “online tools and resources help with tax filing”.

* The 2025 Form 1040, Form 1040-SR, and Schedules 1 - 3 and the instruction book are now available to download at the IRS website.

* And the New York State 2025 tax forms and instructions are also available online.

* Russ Fox has announced his choice for “The 2025 Tax Offender of the Year” at TAXABLE TALK

* And, perhaps a week late, Russ provides his annual reminder to those who use their car for business that “It’s Time to Start Your 2026 Mileage Log”.

TTFN

WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

The last BUZZ of 2025!

* The 2025 NJ state income tax forms and instructions available on the NJ Division of Taxation website.

The only change to the 2025 NJ-1040 I could find is a question about Digital Assets at the top of Page 1.

The final version of the 2025 Form 1040 and 1040-SR, as well as New York and PA state tax returns, are not yet available online.

* The TAX FOUNDATION identifies “State Tax Changes Taking Effect January 1, 2026”. 

* It’s that time of year again – time for “PNC's 2025 Christmas Price Index®: Holiday Cheer Comes at a Premium!” (highlights are mine) -

“The cost of celebrating Christmas is climbing again. Now in its 42nd year, the PNC Christmas Price Index® (PNC CPI) reveals that the cost of the gifts from the classic holiday carol ‘The Twelve Days of Christmas’ has risen 4.5% compared to last year, outpacing the Bureau of Labor Statistics' Consumer Price Index (BLS CPI) October year-over-year reading of 3.0%.

The PNC CPI, launched in 1984, is a light-hearted take on the BLS CPI and measures the change in prices consumers could expect to pay for True Love's gifts. Data is compiled by PNC's Investment Office using sources from across the country, including dance and theatre companies, hatcheries, pet stores and others. Overall, the 12 gifts that comprise the PNC CPI increased to a tree-topping $51,476.12 this year.”

The biggest percentage jump is the 5 golden rings – up 32.5 % from 2024.

* The IRS has finally released the 2026 Standard Mileage allowances -

“Beginning Jan. 1, 2026, the standard mileage rates for the use of a car, van, pickup or panel truck will be:

·  72.5 cents per mile driven for business use, up 2.5 cents from 2025.

·  20.5 cents per mile driven for medical purposes, down a half cent from 2025.

·  20.5 cents per mile driven for moving purposes for certain active-duty members of the Armed Forces (and now certain members of the intelligence community), reduced by a half cent from last year.

· 14 cents per mile driven in service of charitable organizations, equal to the rate in 2025.”

The charitable rate is set by Congress and hasn’t been increased for several years.

TTFN 

WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

 

* From Russ Fox at TAXABLE TALK – “New Jersey: We Delayed Processing Your Extension Payment So We’re Going to Penalize You for Our Error”.

As Russ points out –

“This is also a reminder to you that many notices sent by tax agencies are wrong in part or in whole.  Do not blindly pay a notice!  Send it to your tax professional and have them check it for accuracy.”

In my experience, more often than not error notices from the IRS and state tax agencies are incorrect.  And especially notices from the NJ Division of Taxation.

* The NJ DIVISION OF TAXATION website discusses “One Big Beautiful Bill Act (OBBBA) and the New Jersey Gross Income Tax” (highlight is mine)–

“For Tax Years 2025 through 2028, under the One Big Beautiful Bill Act (OBBBA) there are new federal income tax deductions for senior citizens, overtime, and tips. However, the New Jersey Gross Income Tax (GIT) has defined categories of income and deductions and is not computed based on federal adjusted gross income. Therefore, federal deductions under the federal OBBBA regarding overtime, tips, and senior citizens do not affect a taxpayer's New Jersey Individual Income Tax return (Form NJ-1040, NJ-1040NR, or NJ-1041).”

And “One Big Beautiful Bill Act (OBBBA) - Changes to Charitable Contribution Deductions” (again, highlight is mine) -

“For the purposes of the New Jersey Gross Income Tax Act, there is no provision similar to the Federal Internal Revenue Code allowing charitable deductions. Therefore, there are no changes for Gross Income Tax purposes.”

* The NATP reports “IRS first-time penalty abatement: automatic in 2026” (highlight is mine) –

“The IRS administrative penalty waiver for first-time abatement (FTA) has been in existence since 2001. In the past, tax professionals and taxpayers had to write or call the IRS to request the waiver. Starting in 2026, taxpayers who qualify for FTA will automatically receive the abatement from the IRS.”

The article includes an overview of the First-Time Abatement requirements.

THE LAST WORD

Every single person who voted for convicted felon and indicted traitor Trump for President in 2024 is truly an enemy of the state and an enemy of the people, a traitor to the United States and to the Constitution, and the greatest threat facing America today.

There has NEVER been an intelligent or acceptable reason for ANYONE to vote for Trump for ANY office!

TTFN

WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

 

* The 2025–2026 New York State budget provides for the state’s first-ever Inflation Refund Checks for residents based on their 2023 IT-201 NY Adjusted Gross Income.

“Checks will be mailed over a period of several weeks beginning in mid-October of 2025.”

* The IRS has issued Fact Sheet 2025-05 to address the accelerated termination of several energy provisions under the big but not so beautiful bill -  

“OBBB accelerated the termination of several energy credit and deduction provisions. The following incentives expire the soonest:”

IRC	Credit	Termination date
25C	Energy efficient home improvement credit	Property placed in service after December 31, 2025.
25D	Residential clean energy credit	Expenditures made after December 31, 2025.
25E	Previously-owned clean vehicles credit	Any vehicle acquired after September 30, 2025.
30C	Alternative fuel vehicle refueling property credit	Any property placed in service after June 30, 2026.
30D	New clean vehicle credit	Any vehicle acquired after September 30, 2025.
45L	New energy efficient home credit	Any qualified new energy efficient home acquired after June 30, 2026.
45W	Qualified commercial clean vehicle credit	Any vehicle acquired after September 30, 2025.
179D	Energy efficient commercial buildings deduction	The deduction will not be allowed with respect to any property the construction of which begins after June 30, 2026.

* Speaking of the termination of energy credits, Kay Bell reports “IRS tweaks EV tax credit’s Sept. 30 ending date” at DON’T MESS WITH TAXES -

“ . . the IRS’ frequently asked questions (FAQ) fact sheet issued Aug. 21 says that a vehicle is acquired, per the OBBB requirement, ‘as of the date a written binding contract is entered into and a payment has been made.’”

* And Kay tells us “IRS releases draft 2026 Form W-2, incorporating no tax on tips or overtime income” in another DMWT post.

Kay explains how the newly required information on tip and overtime income available for the OBBA tax deductions are reported for 2026.  But there is no word on how this information will be reported on the 2025 W-2.  

* Russ Fox gives us the word that “IRS Closes Cincinnati Lockboxes; New Addresses In Effect Immediately” at TAXABLE TALK –

“The major change for residents of Alaska, California, Colorado, Hawaii, Idaho, Kansas, Michigan, Montana, Nebraska, Nevada, Ohio, Oregon, North Dakota, South Dakota, Utah, Washington, and Wyoming is that there are new addresses to mail Forms 1040-V and 1040-ES. (Paper-filed forms 1040 with a payment go to the 1040-V address.)”

His source is IRS Publication 3891 “Lockbox Addresses for 2026”.

THE LAST WORD

Supporting and enabling convicted felon and indicted traitor Trump and his attempt to effectively become the King of the United States is unconscionable.

The Republicans in Congress should be ashamed.

Every day brings more proof that nothing is more important – and I mean nothing – for the future of America than making sure the Democrats take control of Congress by a safe majority in 2026.

If Republicans maintain control of Congress, 2026 will not only be the 250^th anniversary of the Declaration of Independence but it will also be the end of American freedom and democracy.

TTFN

WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

 

* Kay Bell, the yellow rose of taxes, explains that “OBBB increases reporting thresholds for 1099 forms K, MISC, and NEC” at DON’T MESS WITH TAXES.

For 2026 the filing threshold for Forms 1099-NEC, Nonemployee Compensation, and 1099-MISC, Miscellaneous Information, will increase from $600 to $2,000, and will be increased for inflation for 2027 and beyond.

Kay ends with an excellent reminder -

“Earners also need to remember that a lack of a 1099 does not mean the money they received is tax-free. All earnings, even those amount not large enough to trigger issuance of a 1099, are taxable income and must be reported when tax returns are filed.”

* Jeff Stimpson reports “New Mexico weather victims get tax relief” at ACCOUNTING TODAY.

* The NJ Division of Taxation has released the “2024 Senior Freeze Payment Schedule”.

* Michael Cohn reports “Commissioner Billy Long leaving IRS for Iceland” at ACCOUNTING TODAY –

“President Trump has removed Billy Long as commissioner of the Internal Revenue Service in the latest sign of turmoil at the embattled agency.”

I wonder what sin of disloyalty to Trump Long committed.  Or what order from Trump he refused to carry out. 

THE LAST WORD

The motto of Trump and the Trump Administration –

“If you can’t dazzle them with brilliance (and we can’t) baffle them with bullshit.”

TTFN

WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

 

* More details on the effects of the despicable Trump Administration’s staffing and funding cuts to the IRS from Michael Cohn at ACCOUNTING TODAY –

“IRS reassesses service improvement projects amid layoffs”, 

“IRS enforcement efforts hit by cutbacks”, and 

“IRS workforce reductions accelerate”

From the 3^rd listed article (highlight is mine) –

“The Internal Revenue Service is continuing to shed employees, with over 25% of its workforce now gone since the beginning of the year, according to a new report, and more employees are expected to depart after the Supreme Court cleared the way.”

Government efficiency my arse!  

* Kay Bell continues the conversation in “2026 filing season could be problematic due to cuts in IRS funding and staff” at DON’T MESS WITH TAXES -  

“Finally, the third thing that could make filing season 2026 problematic is that in addition to working with fewer staff, the agency’s overall budget is going to be cut.”

* Kay also tells us “13 sales tax holidays are scheduled for August”.

* There has been much written about Trump’s recent tax cuts (the big but not so beautiful bill) – but what about the new Trump tax?  Alex Durante and Rebecca Walker explain “Trump Tariffs Will Raise the Cost of Food for Americans” at THE TAX FOUNDATION website.

TTFN

WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

 

* The NSTP BLOG warns “Beware of Offer in Compromise Mills” –

“Offer in compromise mills aggressively promote offers in compromise in misleading ways to people who clearly do not meet the qualifications, often costing taxpayers thousands of dollars.” 

* “Taxgirl” Kelly Phillips Erb provides “Answers To Your Individual Tax Questions About The One Big Beautiful Bill Act” at her FORBES.COM blog.  This is a paid subscription site – so you may or may not be able to access this post.

* For more on OBBBA, Kate Schubel suggests we “Save More with Tax Credits for Energy-Efficient Home Improvements While You Still Can” at KIPLINGER.COM (highlight is hers) -

“If you're planning a few home improvements that will boost the energy efficiency of your house, you'll want to call your contractor soon.

A new GOP tax bill known as the ‘One Big Beautiful Bill’ (OBBB) ends a slew of tax provisions for many ‘clean energy’ tax incentives, including the electric vehicle tax credit, a tax break for home EV charging equipment, and yes, those for energy-efficient home improvements.

In other words, several ‘green energy’ tax incentives are coming to an end.”

* In an earlier BUZZ I quoted ACCOUNTING TODAY editor Dan Hill as suggesting now was a good time to cheat on taxes.

Well Michael Cohn reinforces this idea, reporting “IRS high-income taxpayer audits in doubt after layoffs", also at ACCOUNTING TODAY -

“The Internal Revenue Service's plan under the Biden administration to audit high-income taxpayers appears less likely after staffing and budget cuts under the Trump administration, according to a new report.”

* According to an item in the latest TAXBOOK News email, National Taxpayer Advocate Erin M. Collins’ recent Fiscal Year 2026 Objectives Report to Congress indicates she is worried about the Trump Administration’s reduction in IRS staffing (highlights are mine) -

“Collins warned that without improved technology in place, IRS staffing cuts could jeopardize the success of next year’s filing season. To deliver a successful filing season, the IRS needs a sufficient number of trained employees to program its processing systems, develop and disseminate timely and clear guidance on tax law changes, answer telephone calls and process correspondence, among other things. 

Between the start of the 2025 filing season and June, the IRS workforce decreased from about 102,000 employees to fewer than 76,000, a drop of about 26% (after taking into account employees who accepted an early resignation offer but will remain on rolls through September 30).” 

* The NTA’s report also includes the following statistics on the 2025 filing season (for 2024 returns) –

“Individual Returns Received 140,633,000

Individual Returns Processed 138,057,000

Refunds Issued 86,021,000

Average Refund Amount $2,942

Refunds Issued by Direct Deposit 81,032,000”

It is good to see the high use of direct deposit.  And we are told “over 95% of processed returns were filed electronically” – so about 5% of returns were still filed manually.

THE LAST WORD

Did you know Trump also suffers from "Chronic Intelligence Insufficiency"?

TTFN

WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

 

* The IRS website has added a “Newlyweds tax checklist” –

“Summer wedding season has arrived, and newlyweds can make their tax filing easier by doing a few things now. A taxpayer's marital status as of December 31 determines their tax filing options for the entire year, but that's not all newlyweds need to know.”

* The University of Illinois’ TAX SCHOOL BLOG reviews the “Tax Rules for Rental Properties and Vacation Homes”.

* Michael Cohn brings us the bad news that “IRS allows churches to endorse political candidates” at ACCOUNTING TODAY –

“The Internal Revenue Service has given churches and other houses of worship the green light to endorse political candidates.

In a court filing Monday first reported by the New York Times, the IRS said such endorsements would not violate the decades-old ban on political endorsements by churches known as the Johnson Amendment that dates back to 1954 and was named after then-Senator Lyndon Baines Johnson.”   

I see the hands of today’s Religious Right controlled Republican Party, Trump, and his newly appointed IRS Commissioner in this – as many hypocritical alleged Christians and Christian churches support Trump and similar so-called “evangelical” candidates.

* “IRS announces tax relief for taxpayers impacted by severe storms, straight-line winds, and flooding in Texas; various deadlines postponed to Feb 2, 2026.”

* Kay Bell tells us “Sales tax holidays set in 17 states, with 4 back-to-school events in July” at DON’T MESS WITH TAXES.

TTFN

WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

 

* The TAX SCHOOL BLOG of the University of Illinois discusses Medicare’s IRMAA rules in “How MAGI Impacts Your Clients’ Costs” –

“Medicare premiums for 2025 will be based on 2023 MAGI.  MAGI for Medicare IRMAA determination is calculated as adjusted gross income (AGI) plus tax-exempt interest.  If MAGI exceeds $212,000 for married couples filing jointly or exceeds $106,000 for individual taxpayers, Medicare Part B and D premiums will include a surcharge ranging from $74.00 to $443.90 per month on top of the standard Part B premium of $185.” 

It is important to take the IRMAA into consideration when deciding whether to file separate returns.

* Editor Dan Hood explains in his editorial in the latest issue of ACCOUNTING TODAY – “ . . . my guess is this has to be the best time in all the history of the income tax and the Internal Revenue Service to cheat on your taxes.”

He quickly follows that statement with “Not that anyone should cheat, of course.”

This is indeed a great time to cheat, thanks to the deplorable and despicable Trump Administration and its equally deplorable and despicable so-called Department of Government Efficiency.

Dan goes on to explain that the IRS “has been hobbled so comprehensively that if you were actually planning to create an environment for tax evasion, you could hardly do better.”

* Kay Bell, the yellow rose of taxes, gives us “A 6-point tax checklist for newlyweds” at DON’T MESS WITH TAXES.

#1 on the list is very important –

“If either new spouse opts to legally change their name, they need to report it to the Social Security Administration (SSA) by filing Form SS-5, Application for a Social Security Card.

The Internal Revenue Service matches what's on your Form 1040 with the SSA data every filing season. If your new name on your return doesn't match the official SSA info, it could delay any refund from your first post-wedding tax filing.”

* The IRS informs us “Long sworn in as the 51st IRS Commissioner”.

As with any Trump appointee I am concerned about his competence, qualifications, and integrity.  The one and only requirement for any Trump appointee is that he or she pledges fealty to and kisses the ring and arse of Trump.

* For those of you who are interested – check out what “I Believe” at BOBSERVATIONS.

TTFN