IRS unveils ‘special withdrawal process’ for small businesses that claimed pandemic-era tax credit

IRS unveils ‘special withdrawal process’ for small businesses that claimed pandemic-era tax credit – CNBC https://bit.ly/45T72vD

IRS issues revised tax gap estimates

The IRS has issued a new “tax gap” projection for tax years 2020 and 2021. It shows the projected gross tax gap increased to $688 billion in tax year 2021, a “significant jump from previous estimates,” according to the IRS. The gap is estimated to decrease by $63 billion on 2021 returns when accounting for […]

SSA releases 2024 wage base

The Social Security Administration (SSA) has announced that for 2024 the maximum earnings subject to Social Security tax will increase $8,400, from $160,200 to $168,600. The $168,600 wage base for 2024 is slightly greater than the wage base forecasted by the SSA’s Office of the Chief Actuary back in April. In addition, the SSA announced […]

The tax implications of renting out a vacation home

Many Americans own a vacation home or aspire to purchase one. If you own a second home in a waterfront community, in the mountains or in a resort area, you may want to rent it out for part of the year. The tax implications of these transactions can be complicated. It depends on how many […]

Offer in Compromise

Taxpayers who owe more federal taxes than they can pay may be able to seek an Offer in Compromise (OIC) with the IRS. An OIC allows a taxpayer to settle a debt for less than owed, or to enter an agreement for more time to pay, if paying the total would cause financial hardship. In […]

Who can represent me before the IRS?

If the IRS wants to talk to you about a specific tax matter, you can authorize a third-party to handle it on your behalf. But whether it’s an unpaid friend or relative or a paid tax pro, you must grant them formal permission. That can take several forms, such as assigning your power of attorney […]

How IRS auditors learn about your business industry

Ever wonder how IRS examiners know about different industries so they can audit various businesses? They generally do research about specific industries and issues on tax returns by using IRS Audit Techniques Guides (ATGs). A little-known fact is that these guides are available to the public on the IRS website. In other words, your business […]

Gift Tax exclusions limits

This holiday season, you may want to make cash gifts to loved ones. The annual gift tax exclusion for 2023 is $17,000 ($34,000 for married couples). You can give up to that amount to an unlimited number of people by Dec. 31, and the gifts will be exempt from gift tax, the generation-skipping tax and […]

IRS to focus audits on Affluent taxpayers

In recent months, the IRS has repeatedly indicated that it intends to focus audit activity on affluent taxpayers with more than $400,000 in annual income, large partnerships and big corporations. Taxpayers in these groups should, therefore, be prepared for extra scrutiny. You may want to review tax filings from the past three years to ensure […]

4 ways to prepare for next year’s audit

Every fall, CPAs are busy preparing for audit season, which generally runs from January to April each year. This includes meeting with clients, assigning staff and scheduling fieldwork. Likewise, organizations with calendar year ends should prepare for audit fieldwork. A little prep work this fall can help facilitate the process, minimize adjustments and surprises, and […]