Debt Limit bill passes House

On April 26, the U.S. House of Representatives passed a bill to raise the government’s $31.4 trillion debt ceiling that includes sweeping spending cuts. The bill, which passed 217-215, isn’t expected to pass the Senate. In addition, President Biden has said he’ll veto it. The “Limit, Save, Grow Act” would increase the debt limit by […]

Noncash Charitable donation failure

The U.S. Supreme Court (SCOTUS) recently declined to hear a case involving a charitable donation. To secure a tax deduction, property donated to a qualified charity must be accompanied by a contemporaneous receipt from the organization. If the value is more than $5,000, the taxpayer must also submit IRS Form 8283, Noncash Charitable Contributions, and […]

Tax news for investors and users of cryptocurrency

If you’re a crypto investor or user, you may have noticed something new on your tax return this year. And you may soon notice a new form reporting requirements for digital assets. Check the box Beginning with tax year 2022, taxpayers must check a box on their tax returns indicating whether they received digital assets […]

What’s ahead for Social Security?

What could be ahead for Social Security (SS)? SS Trustees and the bipartisan Congressional Budget Office now estimate that the retirement trust fund will be exhausted within 10 years, a year earlier than previously predicted. Due to rising interest rates and the highest inflation since 1981, SS recipients needed cost-of-living increases of 8.7%, which consumes […]

Am I a partnership?

Spouses who operate a business together must understand the federal tax rules involved. A spouse is considered an employee if there’s an employer/employee arrangement. For example, if one spouse controls the business and the other spouse is under his or her direction, the second spouse is subject to tax and FICA withholding. However, if the […]

Beware of the gray areas in accounting

Accounting and auditing standards have come under scrutiny in the wake of recent high-profile bank failures. Investigations are currently underway about what went wrong with Silicon Valley Bank and Signature Bank. But it’s likely that some “gray areas” in the accounting rules were exploited to make these organizations appear more economically secure in their year-end […]

Collection Financial Standards Revised

IRS Collection Financial Standards are revised annually and used to determine how much income delinquent taxpayers are allowed to keep to pay their bills (with the rest going to settle their tax debts). Allowable living expenses include those that meet the “necessary expense test.” This test is defined as expenses that are necessary to provide […]

Upcoming Due Dates

While Tax Day (April 18, 2023) has come and gone, the IRS is continuing to remind taxpayers of upcoming filing deadlines. For example, for calendar-year tax-exempt organizations, 2022 returns are due May 15. Exempt organizations filing Form 990, 990-EZ, 990-PF or 990-T and private foundations filing Form 4720 for calendar year 2022 must file their […]

Employment Tax Audits coming

The IRS has earmarked part of the funding provided by the Inflation Reduction Act for greater enforcement, including employment tax. Consequently, a former senior litigation counsel at the U.S. Dept. of Justice, Rob Kovacev, stressed that businesses should begin planning for the increased possibility of an audit. He reasoned that the urgency for audit preparation […]