Tax season is almost upon us! Have you read up on the new laws and changes that will affect clients? Here are some things to know going into the season.
Further Consolidated Appropriations Act
In order to avoid a government shutdown, the President signed the Further Consolidated Appropriations Act, which passed some extenders, repealed three Affordable Care Act provisions, and changed a few other taxpayer related items. The bill, which is over 700 pages long, is still being reviewed but a nice recap of the tax changes made can be found on the National Association of Taxpayers website here.
Standard Mileage Rates for 2020
The 2020 optional standard mileage rates have been released. They went into affect January 1, 2020 and are as follows:
- 57.5 cents per mile driven for business use, down one half of a cent from the rate for 2019,
- 17 cents per mile driven for medical or moving purposes, down three cents from the rate for 2019, and
- 14 cents per mile driven in service of charitable organizations.
Free File Agreement Signed
The IRS announced today an agreement with Free File, Inc. (FFI) designed to bring more clarity for taxpayers choosing to use free online software during the 2020 filing season. The agreement reached will help make the Free File program more taxpayer-friendly while strengthening consumer protections in several key areas. Learn more here.
Finally, be sure to review the National Taxpayer Advocate’s Annual report to congress, which highlights key challenges such as the implementation of the Taxpayer First Act, inadequate taxpayer service and limited funding of the agency.