Agreement on the Inflation Reduction Act

The Inflation Reduction Act has moved a step closer to being passed in the U.S. Senate. Sen. Chuck Schumer (D-NY) and Sen. Joe Manchin (D-WV) have agreed to a pared down package of provisions once part of the larger Build Back Better Act. Tax-wise, the bill would impose a 15% minimum tax on corporations with […]

Independent Contractor reporting

Businesses must withhold employment taxes from employees’ wages and report the wages and the taxes withheld to the IRS. But the reporting obligations for workers who aren’t employees can be trickier. While a business isn’t responsible for withholding employment taxes from nonemployee (or independent contractor) compensation, a business that pays more than $600 to an […]

The IRS wants thieves to pay taxes, too

The Family and Community Inflation Relief Act

Senator Charles Grassley (R-IA) has introduced legislation that would index certain tax benefits to adjust for inflation. The Family and Community Inflation Relief Act would help parents by adjusting the Child Tax Credit and the Non-Child Dependent Credit’s amounts and phase-out thresholds for inflation. Additionally, the bill would provide relief to college students by adjusting […]

Fake charities in the news

When IRS Form 1023-EZ was introduced, it was intended to ease a backlog of tax-exempt organization applications. But in early July, the New York Times reported that one individual registered 76 fake charities, many using Form 1023-EZ and all sharing the same P.O. box. Now, Congressman Bill Pascrell (D-NJ) is pressing the IRS to explain […]

CHIPS Act poised to boost U.S. businesses

The Creating Helpful Incentives to Produce Semiconductors for America Act (CHIPS Act) was recently passed by Congress as part of the CHIPS and Science Act of 2022. President Biden is expected to sign it into law shortly. Among other things, the $52 billion package provides generous tax incentives to increase domestic production of semiconductors, also […]

Estimated Budget effect on Revenue

How much revenue are President Biden’s fiscal year 2023 budget proposals estimated to generate? According to the nonpartisan Joint Committee on Taxation (JCT)’s recent review: $1.7 trillion between 2023 and 2032. From 2023 to 2027, Biden’s proposals are expected to net $795 billion. However, many of these proposed revenue generators, such as raising the corporate […]

Details & Analysis of the Senate Inflation Reduction Act Tax Provisions

Details & Analysis of the Senate Inflation Reduction Act Tax Provisions https://bit.ly/3PWft23

Identity Theft

Taxpayer identity theft is alive and well. However, progress has been made in combating this crime. The IRS, state agencies and tax professionals urge taxpayers to protect themselves with an Identity Protection PIN (IP PIN). This 6-digit number must be requested from the IRS and is renewed each year. The number must be entered on […]

Three tax breaks for small businesses

Sometimes, bigger isn’t better: Your small- or medium-sized business may be eligible for some tax breaks that aren’t available to larger businesses. Here are some examples. 1. QBI deduction For 2018 through 2025, the qualified business income (QBI) deduction is available to eligible individuals, trusts and estates. But it’s not available to C corporations or […]