Tax courts rules against IRS in research tax credit case

In a new court case, a married couple claimed tax credits for their S corporation’s “qualified research expenses,” but the IRS disallowed the credits and issued a notice of deficiency. The IRS asserted that the taxpayers failed the business component test under Code Sec. 41 because: 1) their construction designs weren’t “new and improved;” 2) […]

Social Security’s future: The problem and the proposals

Recent reports have raised anew concerns about the impending insolvency of the Social Security program, absent congressional action. Social Security reform has long been considered a “third rail” of American politics and understandably so — the options for heading off insolvency will inevitably cause pain for significant segments of the population. Yet some in Congress […]

Innocent spouse relief

Spouses who file joint federal tax returns are both generally liable for the tax owed. But joint filers may be eligible for “innocent spouse” relief that shields them from liability. In one case, the wife of a real estate professional was found to have limited knowledge of her husband’s financial affairs. She lacked access to […]

National Wildfire Awareness Month

May is National Wildfire Awareness Month and it also includes National Hurricane Preparedness Week. To help individuals, businesses and organizations prepare in case they become victims of a natural disaster, the IRS has issued some helpful tips. Make extra copies of key documents, such as Social Security cards, birth certificates and deeds. Secure the originals […]

Use the tax code to make business losses less painful

Whether you’re operating a new company or an established business, losses can happen. The federal tax code may help soften the blow by allowing businesses to apply losses to offset taxable income in future years, subject to certain limitations. Qualifying for a deduction The net operating loss (NOL) deduction addresses the tax inequities that can […]

Do I need to amend my tax return filing?

Have you ever discovered an overlooked deduction on a federal tax return that has already been filed? Or did you ever realize that you didn’t report income or reported too much? An amended tax return may be the answer. Amended returns generally must be filed within three years from the date you filed the original […]

Can I claim a charitable donation on my tax return?

Taxpayers who make charitable donations to tax-exempt organizations may be able to claim a deduction on their federal tax returns. However, to receive the deduction, you must donate to “qualified” organizations. To learn if the organization you’d like to make a donation to is eligible to receive tax-deductible charitable contributions, use the IRS’s Tax Exempt […]

Questions you may still have after filing your tax return

If you’ve successfully filed your 2022 tax return with the IRS, you may think you’re done with taxes for another year. But some questions may still crop up about the return. Here are brief answers to three questions that we’re frequently asked at this time of year. When will your refund arrive? The IRS has […]

California storm relief

Certain victims of severe winter storms, straight-line winds, flooding, landslides and mudslides in California have received tax relief from the IRS. The weather disaster began on Feb. 21, 2023, and the IRS announced that the victims now have until Aug. 15, 2023, to file various individual and business tax returns and make tax payments. Following […]

The new Service Industry Tip Compliance Agreement (SITCA) program

Service industry businesses need to know about the new Service Industry Tip Compliance Agreement (SITCA) program. This program allows covered employers to voluntarily report to the IRS employee tip revenue based on information from their advanced point-of-sale, electronic payment and timekeeping systems. Why would your business volunteer to produce an annual tip report for the […]