On 26 October 2020, the U.S. IRS issued Revenue Procedure 2020-45, which provides the tax year 2021 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. One highlighted change is that the Consolidated Appropriation Act for 2020 increased the amount of the minimum additional tax for failure to file a tax return within 60 days of the due date. Beginning with returns due after 31 December 2019, the new additional tax is USD 435 or 100% of the amount of tax due, whichever is less, an increase from USD 330. The USD 435 additional tax will be adjusted for inflation.
The tax items for tax year 2021 of greatest interest to most taxpayers include the following U.S. dollar amounts: