Learn About Recent IRS Tax Laws and How they Affect US Tax Payers
The Internal Revenue Service (IRS) is the federal agency responsible for collecting taxes in the United States. As such, it is important for taxpayers to stay informed about the latest IRS laws and how they may affect them. Here is a breakdown of some of the latest IRS laws and how they may impact taxpayers:
The American Rescue Plan Act of 2021
This act, which was signed into law on March 11, 2021, includes provisions that provide financial relief to individuals and businesses impacted by the COVID-19 pandemic. Some of the provisions that may impact taxpayers include:
- An extension of the deadline to file and pay taxes for the 2020 tax year to May 17, 2021.
- An expansion of the Child Tax Credit, which allows eligible taxpayers to receive a credit of up to $3,600 per child under the age of 6 and $3,000 per child aged 6 to 17.
- A temporary increase in the maximum amount of the Earned Income Tax Credit for individuals without children.
For more information on the American Rescue Plan Act of 2021 and how it may impact your taxes, you can visit the IRS’s website at https://www.irs.gov/newsroom/american-rescue-plan-act-of-2021-provisions-that-affect-individuals-and-businesses.
This act, which was signed into law on December 22, 2017, made significant changes to the tax code, including:
- A reduction in the corporate tax rate from 35% to 21%.
- An increase in the standard deduction for individuals and married couples filing jointly.
- A limitation on the amount of state and local taxes that can be deducted on federal tax returns.
- The elimination of personal exemptions.
The Taxpayer First Act of 2019
This act, which was signed into law on July 1, 2019, aims to improve the IRS’s customer service and modernize its technology. Some of the provisions of this act include:
- The establishment of a new office within the IRS called the Office of Appeals, which will handle disputes between taxpayers and the IRS in a more efficient and fair manner.
- The implementation of a new online tool called “Get My Payment,” which allows taxpayers to track the status of their stimulus payments.
- The creation of a new independent organization called the Taxpayer Advocate Service, which will assist taxpayers with unresolved tax issues.
The Protecting Americans from Tax Hikes (PATH) Act of 2015
This act, which was signed into law on December 18, 2015, includes provisions that aim to make the tax code more stable and predictable for individuals and businesses. Some of the provisions of this act include:
- An extension of various tax credits and deductions, including the Earned Income Tax Credit, the Child Tax Credit, and the American Opportunity Tax Credit.
- The establishment of a new tax credit for small businesses that provide paid family and medical leave to their employees.
- The permanent extension of the Research and Development Tax Credit, which allows businesses to claim a credit for qualified research and development expenses.
Overall, the latest IRS laws have the potential to significantly impact taxpayers in a variety of ways. It is important for taxpayers to stay informed about these laws and how they may affect their tax situation. If you have any questions or concerns about the latest IRS laws, it is always a good idea to consult with a tax professional or seek guidance from the IRS. To get the best tax debt attorneys, call us immediately.
If you are struggling with tax debt and are in need of relief, consider reaching out to Valley Tax Law for assistance. Our team of experienced tax debt experts can help you develop a customized plan to resolve your tax debt and get you on the path to financial stability. Contact us today to learn more about how we can help you find a solution.