IRS issues notice covering corporate alternative minimum tax

The corporate alternative minimum tax (CAMT) imposes a 15% minimum tax on the adjusted financial statement income (AFSI) of large corporations. Generally, the CAMT applies to large corporations with average AFSI exceeding $1 billion. In Notice 2023-64, the IRS has provided guidance to help corporations determine whether they’re liable for the CAMT and, if so, […]

Is your charity legitimate?

Many taxpayers ramp up their charitable giving towards year-end, to support causes they care about and possibly secure a tax deduction. Before you give, the IRS reminds taxpayers to verify that the organizations they give to are legitimate and tax-exempt. You can use the IRS Tax Exempt Organization Search tool to find out the status […]

How Are Electric Vehicles Taxed in Your State?

How Are Electric Vehicles Taxed in Your State? https://bit.ly/3ZrhFnC

GAO issues report on IRS safeguarding taxpayer data

The “IRS needs to address critical safeguard weaknesses,” according to a Government Accountability Office (GAO) report. The GAO’s focus was to look at how well the IRS has implemented prior recommendations related to cybersecurity and protection of taxpayer data. One serious challenge is the risk involved when the IRS transfers taxpayer data to contractors. Since […]

Deceased spousal unused exclusion in your estate

When taxpayers die, their deceased spousal unused exclusion (DSUE) can be transferred to their surviving spouses. This is usually referred to as “portability.” However, the executor of an estate is required to file an estate tax return within nine months of the decedent’s death that elects portability and describes how the DSUE amount was calculated. […]

IRS suspends processing of ERTC claims

In the face of a flood of illegitimate claims for the Employee Retention Tax Credit (ERTC), the IRS has imposed an immediate moratorium through at least the end of 2023 on processing new claims for the credit. The reason the IRS cites for the move is the risk of honest small business owners being scammed […]

IRS provides guidance on amortization of research expenditures

Prior to 2022, companies could deduct qualified research and experimentation expenses immediately. Under the Tax Cuts and Jobs Act, such expenses are subject to a five-year amortization period (15 years for foreign research). New IRS guidance details how businesses should handle specified research or experimentation (SRE) expenditures for tax years ending after Sept. 8, 2023. […]

Do you have a foreign bank account?

Certain taxpayers must annually report their foreign financial accounts to the U.S. Treasury by filing a Report of Foreign Bank and Financial Accounts (FBAR) on Financial Crimes Enforcement Network (FinCEN) Form 114. Specifically, U.S. taxpayers must file an FBAR to report a financial interest in an account located outside the U.S. if the aggregate value […]

Investment swings: What’s the tax impact?

If your investments have fluctuated wildly this year, you may have already recognized some significant gains and losses. But nothing is decided tax-wise until year end when the final results of your trades will reveal your 2023 tax situation. Here’s what you need to know to avoid tax surprises. Tax-favored retirement accounts and taxable accounts […]

The IRS’s High Wealth, High Balance Due Taxpayer Field Initiative

IRS Commissioner Danny Werfel stated in a news release that the IRS is ensuring that wealthy taxpayers are being held accountable to pay the full amount they owe. He added that the agency is doing so by enforcing already existing laws. Specifically, the High Wealth, High Balance Due Taxpayer Field Initiative focuses on taxpayers with […]