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The latest industry insights from Schmidt & Schmidt.

Meal portion of per diem allowance can be treated as attributed to a restaurant

Posted on Nov 16, 2021

An IRS notice provides a special rule for the temporary 100% deduction.

Changing ways of working call for changing employment and tax policy

Posted on Nov 12, 2021

Annette Nellen examines possible tax policy implications as more people shed tradition work roles and become “digital nomads.”

IRS issues inflation adjustments for 2022 returns

Posted on Nov 10, 2021

The IRS issued updated income tax brackets and other inflation-adjusted amounts under 62 Code sections, including a new standard deduction amount.

FAQ guidance on income change reporting for advance child tax credit

Posted on Nov 9, 2021

The IRS updated its FAQs to explain whether and how to report changes to projected 2021 income for taxpayers receiving advance child tax credit payments.

Tax treatment of COVID-19 homeowner relief payments clarified

Posted on Nov 9, 2021

A revenue procedure clarifies Homeowner Assistance Fund payments are excluded from gross income and gives a safe harbor for computing certain itemized deductions.

New FAQs cover interplay of unemployment income exclusion and credits

Posted on Nov 1, 2021

The IRS advises on the effects on tax credits and the Free Application for Federal Student Aid and what taxpayers should do.

Imprisonment does not constitute reasonable cause

Posted on Nov 1, 2021

The reasonable-cause defense was denied even though the attorney of a jailed taxpayer had assured the taxpayer the returns were filed and taxes were paid.

IRS addresses taxpayer reliance on FAQs, will save copies of old FAQs

Posted on Oct 15, 2021

Taxpayers who reasonably rely on FAQs posted by the Internal Revenue Service will have a reasonable-cause penalty defense under a new policy announced by the agency on Friday. The IRS will also keep original versions of FAQs on its site after it updates them.

Refund of minister’s self-employment taxes denied

Posted on Oct 1, 2021

The taxpayers did not properly claim an exemption, the court holds.