CBO projects $1.4 trillion 2023 federal deficit

In its new “Budget and Economic Outlook: 2023 to 2033” report, the Congressional Budget Office (CBO) projects a $1.4 trillion 2023 federal deficit. This is $0.4 trillion more than its May 2022 projection for 2023. What’s changed? Newly enacted legislation and economic factors, including inflation and rising interest rates, have affected the CBO’s projection models. […]

State Individual Income Tax Rates and Brackets for 2023

State Individual Income Tax Rates and Brackets for 2023 https://bit.ly/3Ik9kd6

Guidance issued on Corporate alternative minumum tax

The Inflation Reduction Act created a new corporate alternative minimum tax (CAMT) that imposes a 15% minimum tax on the adjusted financial statement income of large corporations for taxable years beginning in 2023. Large corporations, including insurance companies, with average annual adjusted financial statement income exceeding $1 billion are the taxpayers generally affected by the […]

IRS misses deadline

The IRS didn’t submit its 10-year plan detailing how it’ll use the $80 billion appropriation from the Inflation Reduction Act by the Feb. 17 deadline set by Treasury Secretary Janet Yellen. Critics of the funding are concerned about the ratio of enforcement amounts compared to other purposes, such as customer service, systems upgrades and supporting […]

Key tax issues in M&A transactions

Merger and acquisition activity dropped dramatically last year due to rising interest rates and a slowing economy. The total value of M&A transactions in North America in 2022 was down 41.4% from 2021, according to S&P Global Market Intelligence. But some analysts expect 2023 to see increased M&A activity in certain industries. If you’re considering […]

IRS interest rates unchanged for 2nd quarter of 2023

There will be no change in certain interest rates for the quarter beginning April 1, 2023. The IRS announced that, for 2nd quarter of 2023, the interest rate for overpayments will remain unchanged, computed from the federal short-term rate determined during Jan. 2023. For individuals, that rate will remain 7%. It will remain 6% for […]

CBO reports on budget deficit

The Congressional Budget Office (CBO) estimates that the federal budget deficit for the first four months of fiscal year 2023 was $459 billion. That’s $200 billion more than the shortfall in the same period in 2022. Receipts for FY23 totaled $1.5 trillion, about 3% less than the same period in 2022. Individual income and payroll […]

Child tax credit: The rules keep changing but it’s still valuable

If you’re a parent, you may be confused about the rules for claiming the Child Tax Credit (CTC). The rules and credit amounts have changed significantly over the last six years. This tax break became more generous in 2018 than it was under prior law — and it became even better in 2021 for eligible […]

Can a blog affect your taxes?

If you blog, beware: It could affect your taxes. Recently, the U.S. Tax Court allowed the IRS to introduce a taxpayer’s personal blog posts into evidence in a tax dispute. The taxpayer and her husband allegedly underpaid federal tax for multiple years. After the husband died, the wife sought “innocent spouse” relief, which the IRS […]

IRS highlights recent achievements

The IRS highlights recent achievements in its “Internal Revenue Service Progress Update for Fiscal Year 2022.” The agency’s 2022 accomplishments include processing 260 million federal tax returns and forms, collecting $4.9 trillion in tax and $72.4 billion in enforcement revenue, and delivering individual refunds averaging $3,176. The publication also discusses the agency’s five-year strategic plan, […]