Increased regulation of cryptocurrency coming soon

The federal government will soon be increasing its regulation of cryptocurrency. Starting in January 2023, crypto brokers must observe new tax reporting requirements. These include providing investors with IRS Form 1099-B, which documents crypto profits and losses. Buying crypto generally isn’t taxable. However, trading it, converting it to cash and using it for purchases, may […]

Employers have options when paying holiday bonuses

Did someone say government shutdown?

The race to fund the federal government and avert a Dec. 16 shutdown is on! Or not. Differences between Democrats and Republicans over spending amounts and policy wavers have brought budget negotiations to a near-standstill. Democrats back an expansion of the Child Tax Credit and are trying to entice Republicans with business tax breaks, including […]

Discussion on IRS responsiveness and accessibility

The U.S. Treasury Department recently conducted another roundtable discussion on how to improve accessibility and service quality at the IRS. These series of discussions are intended to help the IRS develop a strategic plan to modernize tax administration. Specifically, the conversation focused on the challenges underserved taxpayers face when trying to communicate with the IRS. […]

Legislation introduced on AOTC

A bipartisan group of lawmakers have reintroduced legislation that allows individuals with felony drug convictions the right to claim the American Opportunity Tax Credit (AOTC). Under current law, students with such drug convictions are permanently barred from claiming the AOTC for higher education. The Eliminating Discrimination and Creating Corridors to Expand Student Success (ED ACCESS) […]

Checking Employee Retention Credit Claims Before the IRS Does

Checking Employee Retention Credit Claims Before the IRS Does – Bloomberg Tax https://bit.ly/3gOVRk9

Illinois disaster relief granted

The IRS is providing disaster tax relief to victims of severe storms and flooding in St. Clair County, Illinois, between July 25, 2022 and July 28, 2022. Affected taxpayers also include those who were there as part of official relief efforts or visiting the area and were killed or injured by the disaster. The IRS […]

Whirlpool’s appeal request goes down the drain

The U.S. Supreme Court has refused a request by appliance manufacturer, Whirlpool to review a long-standing case. At issue is the treatment of Whirlpool’s 2009 earnings from its Luxembourg controlled foreign corporation, and whether branch rules applied to the income or U.S. Treasury regulations that taxpayers have relied upon for decades. In a tax blog, […]

State officials in talks about how to prevent personal property tax spikes

State officials in talks about how to prevent personal property tax spikes – KSDK.com https://bit.ly/3UmP3b1

Innocent Spouse Relief Case in the Courts

Spouses who file joint federal tax returns are both generally liable for the tax owed. But joint filers may seek “innocent spouse” relief. In one case, a man received innocent spouse relief regarding taxable proceeds that his ex-wife received in settlement of an employment discrimination lawsuit. Although he had knowledge of the settlement proceeds, he […]