IRS payment plans

The IRS is reminding taxpayers that they have options if they can’t pay their tax bills in full. The tax agency advises these individuals to file their returns by the deadline, pay what they can and explore payment options for the balances. The IRS offers short- and long-term plans. The former is offered if the […]

Should you convert your business from a C to an S corporation?

Choosing the right business entity has many implications, including the amount of your tax bill. The most common business structures are sole proprietorships, partnerships, limited liability companies, C corporations and S corporations. In some cases, a business may decide to switch from one entity type to another. Although S corporations can provide substantial tax benefits over C corporations in […]

IRS Whistleblower Office

Taxpayers who give the IRS Whistleblower Office (WBO) information may get cash awards. To be eligible, tips must be credible, specific, relate to tax underpayments or tax law violations, and lead to collection of proceeds exceeding $2 million. One tipster submitted claims relating to seven taxpayers, alleging that each may have failed to report income […]

The IRS National Research Program

The IRS National Research Program (NRP) randomly selects tax returns for audits in order to collect information about noncompliance. To pick returns for audit, the NRP employs artificial intelligence (AI). But a recent report by the U.S. Government Accountability Office (GAO) said the process lacks transparency. One example cited is the random selection of returns […]

Surprise audits are proven to fight fraud

Four antifraud controls are associated with at least a 50% reduction in both fraud loss and duration, according to “Occupational Fraud 2024: A Report to the Nations” published by the Association of Certified Fraud Examiners (ACFE). They are financial statement audits, reporting hotlines, surprise audits and proactive data analysis. However, the ACFE study also found […]

Tax Debt in Bankruptcy

Under certain conditions, taxpayers who file for bankruptcy may be able to discharge some federal tax debt, but not necessarily all of it. Influencing factors include the age and type of the tax debt and when the taxpayer filed tax returns. At one bankruptcy proceeding that later led to litigation, the taxpayer and IRS entered […]

Can your business survive a disaster?

Happy Father’s Day

“Good dads forgive your mistakes. Great dads help you hide them from mom.” —Bill Gray Wishing you a safe and happy Father’s Day!

IRA offers contractors a tax credit for energy-efficient homes

Under the Inflation Reduction Act, construction contractors who build or rehab energy-efficient homes may be eligible for a federal tax credit of up to $5,000 per project. A home must be a U.S. single-family dwelling that’s purchased or rented for use as a residence. It also must be certified to meet energy-saving requirements before it’s […]

Uploads to the IRS hits the one million mark

The IRS’s Document Upload Tool (DUT) has now surpassed one million submissions since it launched in 2021. During the first six months of fiscal year 2024, more than 265,000 taxpayers used the tool. The DUT offers taxpayers and tax professionals the option to respond digitally to eligible IRS notices by securely uploading required documents online […]