TIGTA raises concerns on IRS tax liens

After the completion of an audit, the Treasury Inspector General for Tax Administration (TIGTA) is raising concerns that the IRS isn’t properly notifying taxpayers regarding tax liens. TIGTA’s annual audit reviewed IRS compliance with Notice of Federal Tax Lien (NFTL) filing and Collection Due Process (CDP) procedures. The audit examined a statistically valid sample of […]

Congress asks questions on IRS handling of ERTC

Members of Congress have questions for the IRS and Treasury Dept. on overall tax fairness and on the Employee Retention Tax Credit (ERTC). Regarding the former, Democratic senators sent a letter to Treasury Secretary Janet Yellen and IRS Commissioner Danny Werfel urging the IRS to “use its rulemaking authority to close tax loopholes that create […]

Casualty loss tax deductions may help disaster victims in certain cases

This year, many Americans have been victimized by wildfires, severe storms, flooding, tornadoes and other disasters. No matter where you live, unexpected disasters may cause damage to your home or personal property. Before the Tax Cuts and Jobs Act (TCJA), eligible casualty loss victims could claim a deduction on their tax returns. But currently, there […]

Cooperation is key forCollection Due Process hearings

Taxpayers that owe more taxes than they can currently pay can request a Collection Due Process (CDP) hearing, but cooperation with the IRS is key. One taxpayer timely filed a return but didn’t include income that was reported to the IRS by third parties. The IRS sent a notice of deficiency by certified mail to […]

Fuel tax credit added to IRS’s Dirty Dozen

Abuse of the Fuel Tax Credit (FTC) is on the IRS’s 2023 Dirty Dozen list of the worst tax scams, yet little is done to stop it. That’s according to audits by the Treasury Inspector General for Tax Administration (TIGTA). This credit is for the nontaxable use of certain fuels by taxpayers with a business […]

What types of expenses can’t be written off by your business?

If you read the Internal Revenue Code (and you probably don’t want to!), you may be surprised to find that most business deductions aren’t specifically listed. For example, the tax law doesn’t explicitly state that you can deduct office supplies and certain other expenses. Some expenses are detailed in the tax code, but the general […]

Louisiana tax relief

Tax relief has been granted to many communities this year due to hurricanes, flooding and fires, but tax relief due to seawater intrusion will sound novel to most. In Louisiana, saltwater has infiltrated municipal drinking water supplies on the coast because the Mississippi River’s water level isn’t high enough to force the seawater back. The […]

Wash Sale rule clarified

The IRS has clarified how its “wash-sale” rule affects redemptions of shares in money market funds (MMFs) that maintain fixed share prices. In general, wash sales occur when investors sell securities at a loss and, within 30 days before or after that sale, buy the same securities. Under the IRS’s wash-sale rule, such investors can’t […]

FASB approves updated rules for disclosing income taxes

On August 30, 2023, the Financial Accounting Standards Board (FASB) unanimously voted to finalize its proposed improvements to the disclosure rules for income taxes. Here’s what’s changing and when those changes are effective. Rate reconciliation Under the updated guidance, companies will be required to provide a breakout of amounts paid for taxes between federal, state, and […]

Why some employees don’t take time off