The IRS published various cost of living adjusted numbers for the 2020 tax year in Revenue Procedure 2019-44.[1]

This procedure, published annually, deals with most items that are to be inflation adjusted by law aside from items related to retirement plans and health savings accounts, for which other revenue procedures are published each year.  In fact, the retirement plan numbers were published on the same day as this main procedure this year.

The IRS announced the agency has discovered an error that existed in the worksheets for calculating tax due that were in the Schedule D instructions for 2018 returns (Error in Tax Calculation in Schedule D Tax Worksheet (Form 1040)[1]).  Most tax software followed the erroneous worksheet for returns prepared during the filing season.

The IRS noted the impacted returns as follows:

The tax calculation did not work correctly with the new TCJA regular tax rates and brackets for certain Schedule D filers who had 28% rate gain (taxed at a maximum rate of 28%) reported on line 18 of Schedule D or unrecaptured section 1250 gain (taxed at a maximum rate of 25%) reported on line 19 of Schedule D.

The IRS released inflation adjusted amounts for a number of tax related items for 2017 in Revenue Procedure 2016-55.  This year’s information includes a number of additional entries, including §179 adjustments and revisions of the amounts for various penalties, that Congress added in the various tax bills that were passed in 2015.

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The IRS released inflation adjusted amounts for 2016 in Revenue Procedure 2015-53.