8legs: Internal revenue service

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#1 out of 5

IRS issues Rev. Proc. 2026-17, allowing certain 163(j) elections to be withdrawn for 2022–2024.
Eligible real property, farming, and regulated utility electors can revoke their section 163(j) elections for 2022–2024.
Withdrawals are treated as if the election never occurred, with amended returns required for the year and any affected years.
CFC group elections can be made or revoked without the 60-month limit for the first specified post-2024 period.
The relief notes a shift in cost-benefit analysis due to OBBBA and 100% bonus depreciation.
Taxpayers should model impacts across years to assess depreciation and ATI changes before withdrawing.
The guidance allows late election under 168(k)(7) to opt out of bonus depreciation when withdrawing.
The guidance includes an option for eligible BBA partnerships to file amended Form 1065 and issue amended K-1s.
RSM notes the real estate industry was a primary focus of the relief.
Taxpayers must coordinate with tax advisors to model depreciation and international changes.

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#2 out of 5

The 1% excise tax on outbound cross-border transfers took effect under the 2025 tax law, and providers must begin collecting it from customers.
Many financial institutions are collecting the tax without formal IRS rules in place, creating a period of uncertainty for compliance.
Remittance providers must file tax collection returns with the IRS by April 30, 2025.
The tax applies to outbound transfers from U.S. accounts, affecting how money is sent abroad.
Bloomberg Tax notes the situation is a work in progress as lawmakers and the IRS provide guidance.
Financial institutions are trying to implement the tax despite the lack of formal IRS rules.
The new tax is part of the 2025 policy changes aimed at remittance transactions.
The article emphasizes the need for IRS guidance to clarify enforcement and compliance.
Taxpayers are affected as banks and transmitters collect the new tax before formal IRS guidelines.
The report is published by Bloomberg Tax, part of Bloomberg Industry Group.

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#3 out of 5

world21h ago

The IRS is delaying some refunds as it finishes phasing out paper checks in favor of electronic payments.
About 1.4 million filers are facing delays due to notices requesting updated banking information (CP53E).
Taxpayers have 30 days to provide banking details; otherwise, a paper refund could be issued after six weeks.
The phaseout was accelerated by an executive order signed in 2025 to move government payments from paper to electronic.
Some lawmakers warn the notices add administrative burdens for vulnerable groups.
Tax return trends show average refunds rising, which could be offset by fuel price changes.
The policy shift targets reducing costs and speeding refunds, per the IRS and Treasury statements.
Officials emphasize electronic refunds are faster and more secure, though rollout has challenges.
Analysts warn the timing of the rollout could affect households during rising living costs.
Experts suggest assisting unbanked and low-income taxpayers to reduce hardship during the transition.

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#4 out of 5

The average tax refund is up 10.9% so far this season, based on IRS filing data through March 20.
As of March 20, the average refund for individual filers was $3,571, up from $3,221 a year ago.
The data reflect about 79 million returns received out of roughly 164 million expected by the April 15 deadline.
Experts say the SALT deduction cap change for 2025 could push more filers to itemize deductions.
Some filers may see higher refunds due to new deductions on Schedule 1-A, according to a March hearing.
The report notes refunds could rise if filers claim the larger SALT deduction cap introduced for 2025.
Analysts expect refunds to stabilize before the April 15 deadline, barring major policy shifts.
The data cover filings processed as the government implements ongoing tax changes under the current administration.
IRS data indicate the timing of refunds may vary due to form details like brokerage assets and business income.
Overall, refunds rose but not as dramatically as some early predictions anticipated.

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#5 out of 5

The IRS's 'Where's my refund?' tool lets taxpayers check if their refund has been received, approved, and sent via direct deposit.
Most e-filed returns show refunds within about three weeks, while paper filings can take six weeks or more.
Direct deposit is encouraged for faster refunds, as the IRS phased out most paper refund checks last fall.
Some refunds may be delayed due to additional review, such as credits like earned income tax credit or child tax credit.
The IRS provides separate tools for amended returns to check status after filing.
The IRS continues to issue most refunds within 21 days, with some exceptions for reviews.
Taxpayers can check refund status via the IRS mobile app and automated hotlines.
The IRS is phasing out paper refund checks but will still issue them if no alternative is available.
Taxpayers without bank accounts may use prepaid debit cards or digital wallets as alternatives.
Amended returns can take longer to process, sometimes up to 16 weeks.
The article emphasizes filing accuracy to avoid delays from common mistakes.

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