donating to charity through an IRA

Distributions from a traditional Individual Retirement Account (IRA) are generally taxable when received, though exceptions exist. For charitably inclined taxpayers who are at least 70½ years old, one tax-favored exception is the qualified charitable distribution (QCD). A QCD is a nontaxable distribution made directly by an IRA’s trustee to organizations that are qualified to receive […]

5 steps to take now to cut your 2022 tax liability

It has been quite a year — high inflation, rising interest rates and a bear stock market. While there’s not a lot you can do about any of these financial factors, you may have some control over how your federal tax bill for the year turns out. Here are some strategies to consider executing before […]

Closing a business?

If you’re closing a business, there are important bases you may have to cover. Here’s a rundown: File a final tax return and related forms, depending on the type of business. Issue final paychecks to employees and file employment tax reports for the quarter, plus annual reports. Provide Forms W-2 to employees, and Forms 1099-NEC […]

IRS Priority Guidance Plan

Want to know what the IRS plans to prioritize in 2023? Check the 2022–2023 Priority Guidance Plan: https://bit.ly/3NNFjox. It includes 205 guidance projects, including 60 new items, that the IRS will focus its efforts and budget on during the fiscal year. One new addition is a project category for “energy security,” which contains items related […]

2023 limits for businesses that have HSAs — or want to establish them

No one needs to remind business owners that the cost of employee health care benefits keeps going up. One way to provide some of these benefits is through an employer-sponsored Health Savings Account (HSA). For eligible individuals, an HSA offers a tax-advantaged way to set aside funds (or have their employers do so) to meet […]

TIGTA issues security recommendations

In a recent audit, the Treasury Inspector General for Tax Administration (TIGTA) found several items of concern. TIGTA assessed the security and access controls of the IRS’s Taxpayer Digital Communications Secure File Sharing – Secure Messaging platform. This platform is intended to enable faster communications, including the exchange of documents, between taxpayers and the IRS. […]

FinCEN Renews and Expands Real Estate Targets

The Financial Crimes Enforcement Network (FinCEN) combats domestic and international money laundering, terrorist financing and other crimes. It’s renewing and expanding its Geographic Targeting Orders (GTOs) that require U.S. title insurance companies to identify the persons behind shell companies used in all-cash purchases of residential real estate. Specifically, FinCEN is expanding the coverage of the […]

Adopting a child? Bring home a tax break too

Two tax benefits are available to offset the expenses of adopting a child. In 2022, adoptive parents can claim a credit against their federal tax for up to $14,890 of “qualified adoption expenses” for each eligible child. This will increase to $15,950 in 2023. That’s a dollar-for-dollar reduction of tax. Also, parents may be able […]

Adopting a child? Bring home a tax break too

Two tax benefits are available to offset the expenses of adopting a child. In 2022, adoptive parents may be able to claim a credit against their federal tax for up to $14,890 of “qualified adoption expenses” for each child. This will increase to $15,950 in 2023. That’s a dollar-for-dollar reduction of tax. Also, adoptive parents […]

IRS will now allow 403(b) retirement plans to use determination letter program

The IRS is expanding its determination letter program that approves certain retirement plans. Under Revenue Procedure 2022-40, 403(b) retirement plans can now use the same individually designed retirement plan determination letter program that’s currently being used by other qualified retirement plans, such as 401(k) plans. 403(b) retirement plans generally are used by public schools, churches […]