It’s possible (but not easy) to claim a medical expense tax deduction

One of your New Year’s resolutions may be to pay more attention to your health. Of course, that may cost you. Can you deduct your out-of-pocket medical costs on your tax return? It depends. Many expenses are tax deductible, but there are several requirements and limitations that make it difficult for many taxpayers to actually […]

IRS collects record amount of revenue

In a recent report, the Treasury Inspector General for Tax Administration (TIGTA) stated that the IRS collected a record-setting amount of revenue in fiscal year 2022. It took in $4.9 trillion, $790 billion more than collected in fiscal year 2021. TIGTA’s Trends in Compliance Activities Through Fiscal Year 2022 also reports an estimated “tax gap” […]

Defer a current tax bill with a like-kind exchange

If you’re interested in selling commercial or investment real estate that has appreciated significantly, one way to defer a tax bill on the gain is with a Section 1031 “like-kind” exchange. With this transaction, you exchange the property rather than sell it. Although the real estate market has been tough recently in some locations, there are […]

GAO reports on IRS efforts to enhance tax compliance

The Government Accountability Office (GAO) recently reported that the IRS can improve its use of information returns to enhance tax compliance. The IRS received more than five billion such returns in 2022, including Form W-2, Form 1099-NEC, Form 1099-INT and Form 1099-K. It uses these forms to verify self-reported income and tax on taxpayers’ returns. […]

The future of accounting: How to embrace cutting-edge technology

Technology is transforming the accounting profession. When businesses moved from paper ledgers to spreadsheets, it improved the timeliness, accuracy and integrity of accounting-related data. Likewise, cloud computing and the ability to remotely access real-time data have allowed accounting departments to be far more responsive to an increasingly distributed workforce. Artificial intelligence (AI) is the latest […]

Accuracy related penalty imposed for unreported income

Federal tax law defines gross income as income from all sources, unless excluded by law. In one case, a married couple was assessed an accuracy-related penalty for unreported income from illegal marijuana manufacturing and sales. The couple argued that the IRS lacked direct evidence linking them to any income-producing activity related to marijuana. However, if […]

Make these 5 New Year’s resolutions to avoid scams this year

Make these 5 New Year’s resolutions to avoid scams this year – USA TODAY https://bit.ly/3NQcmtw

When are estimated tax payments due in 2024?

IRS ‘Pay Up’ Letters Start Arriving in Millions of Mailboxes

IRS ‘Pay Up’ Letters Start Arriving in Millions of Mailboxes Next Week – The Messenger https://bit.ly/3vo8XLV

Regulations proposed for energy efficient home improvement credit

The IRS announced that it will propose regulations to implement the product identification number (PIN) requirement with respect to the energy efficient home improvement credit. Beginning Jan. 1, 2023, the credit (subject to certain limits and caps) is equal to 30% of the total amount paid for certain qualified expenses. These include qualified energy efficiency […]