Tax Proposals in the State of the Union address

In the State of the Union address, President Biden announced several tax-related proposals. In a nutshell, he vowed to raise taxes on the wealthiest Americans, increase the corporate minimum tax, cut executive pay tax deductions and curb corporate jet tax breaks. Specifically, Biden renewed his call for a “billionaire” tax. It would impose a 25% […]

TIGTA reports on IRS protection of taxpayer data

Is the IRS properly protecting sensitive taxpayer data? That’s the subject of a recent report by the Treasury Inspector General for Tax Administration (TIGTA), based on a request from Congress. The report looked at a “massive leak” of data in June 2021 that allowed a media outlet to obtain a “vast trove” of more than […]

Cash vs. accrual accounting: What’s the difference?

Financial statements are critical to monitoring your business’s financial health. In addition to helping management make informed business decisions, year-end and interim financial statements may be required by lenders, investors and franchisors. Here’s an overview of two common accounting methods, along with the pros and cons of each method. 1. Cash basis Under the cash-basis […]

What’s my status?

When it comes to tax filing, the correct status to claim isn’t always obvious. Suppose the parents of a young child live together but were never married. Both contribute to the cost of maintaining a household and caring for the child. Are both able to claim the favorable head of household (HOH) status? The answer […]

House advances resolution rejecting SEC Bulletin

The U.S. House Financial Services Committee has advanced a resolution that rejects SEC Staff Accounting Bulletin (SAB) 121, which was issued to help account for crypto assets in SEC custody. The guidance instructs registered entities responsible for safeguarding crypto assets to include a liability and corresponding asset on their balance sheets. But many legislators and […]

Is “tipping culture” out of control?

IRS has issued final regulations for manufacturing investment tax credit

The IRS has issued final regulations for manufacturers eligible to make the elective payment election of the advanced manufacturing investment tax credit. This credit was created in 2022 by the CHIPS Act and is intended to incentivize companies to make semiconductors and semiconductor equipment in the United States. The final regulations describe procedures for making […]

Deadline to claim Recovery Rebate Credit nears

The Recovery Rebate Credit is a refundable tax credit for individuals who missed out on one or more Economic Impact Payments. These were initially issued in 2020 and 2021 to provide relief during the pandemic. Some individuals and families remain eligible for the payments. However, taxpayers must file tax returns to make claims, even if […]

Myths versus facts for 1099-K forms

Third-party settlement services are popular because of how convenient they are to use. These services include payment apps, such as Venmo, and online marketplaces, such as eBay. However, if you cross certain transaction thresholds, you may receive Form 1099-K, Payment Card and Third Party Network Transactions. Late last year, the IRS delayed enforcing a $600 […]

Why Your Tax Refund Is Nothing to Celebrate

Why Your Tax Refund Is Nothing to Celebrate https://bit.ly/49JTzJd