Your estate plan: Don’t forget about income tax planning

As a result of the current estate tax exemption amount ($12.06 million in 2022), many people no longer need to be concerned with federal estate tax. Before 2011, a much smaller amount resulted in estate plans attempting to avoid it. Now, because many estates won’t be subject to estate tax, more planning can be devoted […]

The Impact of the Earned Income Tax Credit (EITC) on IRS audits

The Congressional Research Service (CRS) has issued a report (https://bit.ly/3MVTXb7 ) that examines the impact of the Earned Income Tax Credit (EITC) on IRS audits. The report was spurred by concern that the IRS is auditing low-income taxpayers, particularly taxpayers who claim the EITC, at disproportionately high rates compared with higher-income taxpayers. “These higher audit rates […]

Report on IRS Whistleblower Office

In a report to Congress, the IRS’s Whistleblower Office said that in 2021 the agency collected more than $245 million from noncompliant taxpayers as a result of whistleblowers’ tips. The IRS made 179 awards totaling more than $36 million to the whistleblowers. Since the whistleblower program began in 2007, the number and amounts of awards […]

Is your corporation eligible for the dividends-received deduction?

There’s a valuable tax deduction available to a C corporation when it receives dividends. The “dividends-received deduction” is designed to reduce or eliminate an extra level of tax on dividends received by a corporation. As a result, a corporation will typically be taxed at a lower rate on dividends than on capital gains. Ordinarily, the […]

IRS impersonator scams

You can help fight IRS impersonator scams. The Treasury Inspector General for Tax Administration (TIGTA) is alerting taxpayers about scammers claiming to be from the IRS. These criminals tell victims they owe unpaid tax and threaten them with arrest or other consequences if the victims don’t send money. Scammers may also ask for personal information, […]

Federal Revenue collections up

U.S. revenues for fiscal year 2022 so far have exceeded predictions, according to the Congressional Budget Office (CBO). The CBO reports that FY 2022 revenues outpaced the same period in FY 2021 by 29%, due to increases in individual taxes, payroll taxes and corporate income tax collections. The estimated federal budget deficit for FY 2022 […]

Private business owners: Don’t wait until year end to evaluate financial performance

How often does your company generate a full set of financial statements? It’s common for smaller businesses to issue only year-end financials, but interim reporting can be helpful, particularly in times of uncertainty. Given today’s geopolitical risks, mounting inflation and rising costs, it’s wise to perform a midyear check-in to monitor your year-to-date performance. Based […]

American Rescue Plan Act sunset coming soon

The American Rescue Plan Act of 2021 expanded tax benefits to reduce the cost of health insurance premiums. But these benefits are scheduled to expire at the end of 2022. Colorado Democratic Senators Bennet and Hickenlooper have proposed that the advanced premium tax credit (APTC) be made permanent. According to the senators, the APTC helped […]

EV credits

The electric vehicle (EV) tax credit begins to phase out when 200,000 of a manufacturer’s qualifying vehicles have been sold. But automakers are telling Congress, not so fast! In a letter, GM, Ford, Chrysler and Toyota asked Congressional leaders to give all electric car and light truck buyers a tax credit of up to $7,500. […]

Standard business mileage rate will increase for the second half of 2022

The IRS recently announced that it’ll increase the standard mileage rate for qualified business driving for the second half of 2022. The adjustment reflects the soaring cost of gasoline this year. In fact, as of June 13, the nationwide average price of regular unleaded gas was $5.01 a gallon, according to the AAA Gas Prices […]