Republican members of the U.S. House Ways and Means Committee have introduced multiple bills that total around $237 billion in tax cuts. One would extend and retroactively restore three expired business tax breaks from the Tax Cuts and Jobs Act that involve research spending, interest expenses and equipment purchases. The package would also introduce a […]

State Tax Reform and Relief Trend Continues in 2023 https://bit.ly/3Cy6Sxu 

The U.S. Dept. of the Treasury has announced a framework designed to promote fair and transparent compliance in tax administration and enforcement. Four core principles make up the framework. The government should: 1) make it easier for taxpayers who want to comply with the law to fulfill their obligations; 2) prioritize enforcement efforts based on […]

The Inflation Reduction Act created the new corporate alternative minimum tax (CAMT). It imposes a 15% minimum tax on the adjusted financial statement income of large corporations for taxable years beginning after Dec. 31, 2022. CAMT generally applies to large corporations with average annual adjusted financial statement income exceeding $1 billion. The IRS, in Notice […]

The IRS is cautioning taxpayers with outstanding tax bills to avoid a scam that claims they can resolve tax debt for pennies on the dollar. They’re called offer in compromise (OIC) “mills,” and are run by unscrupulous companies that lead taxpayers to believe they can “magically get rid of tax debt,” the IRS warns. In […]

Under tax law, compensation can be deducted by a business only to the extent that it’s reasonable. Any unreasonable portion, if paid to a shareholder, isn’t deductible and may be taxed as a dividend. In one case, a U.S. Appeals Court found that a closely held construction company didn’t establish that the compensation paid to […]

In an estate tax case, a U.S. Court of Appeals found life insurance was taxable and properly valued. Two brothers, who were the sole shareholders of a corporation, had life insurance policies so that if one brother died, the other could use the proceeds to redeem his brother’s shares. After one brother died, the IRS […]