IRS ramps up compliance enforcement against certain businesses

The Inflation Reduction Act provided the IRS with billions of dollars of additional funding to reduce the so-called “tax gap” between what taxpayers owe and what they actually pay. The tax agency has already launched numerous initiatives aimed at this goal, including several business-related compliance campaigns. Let’s take a closer look at three of the […]

School returns soon…Is your 529 plan in order?

Before long, school bells will be ringing again. If you’ve set up Section 529 college savings plans for your kids or grandkids, you know these plans bring federal (and possibly state) tax advantages. For example, qualified withdrawals are free from federal income tax, subject to limitations. But 529 accounts aren’t just for college. The funds […]

The No Tax on Tips Act

A Republican-led bill to exempt tipped wages from federal income tax may gain momentum, thanks to a few Democrats. The No Tax on Tips Act was introduced by Senator Ted Cruz (R-Tex) and has mostly received support from Republicans. But Senators Catherine Cortez Masto (D-Nev) and Jacky Rosen (D-Nev) announced they’re backing the bill, primarily […]

What might be ahead as many tax provisions are scheduled to expire?

Buckle up, America: Major tax changes are on the horizon. The reason has to do with tax law and the upcoming elections. Our current situation The Tax Cuts and Jobs Act (TCJA), which generally took effect in 2018, made sweeping changes. Many of its provisions are set to expire on December 31, 2025. With this […]

Virtual Currency Tax Compliance Enforcement Can Be Improved

A new report from The Treasury Inspector General for Tax Administration (TIGTA) expresses concern about the IRS’s ability to review and investigate digital asset transactions. The IRS recently released final digital asset regulations (in accordance with the Infrastructure and Jobs Act). TIGTA praises the tax agency’s increase in criminal enforcement using data analytic tools. However, […]

Deductible medical Expenses?

If you’ve incurred medical expenses this year, you may qualify for a tax deduction. Taxpayers can deduct the amount of unreimbursed medical expenses that exceeds 7.5% of their adjusted gross income. To qualify for the deduction, the expenses must be paid specifically for medical or dental services, prescription drugs, insulin, medical equipment and supplies, medical […]

Consider borrowing from your corporation but structure the deal carefully

If you own a closely held corporation, you can borrow funds from your business at rates that are lower than those charged by a bank. But it’s important to avoid certain risks and charge an adequate interest rate. Basics of this strategy Interest rates have increased over the last couple years. As a result, shareholders […]

The Self Employment Tax Credit

You’ve probably never heard of the “Self Employment Tax Credit.” That’s because it doesn’t exist! However, unscrupulous promoters on social media are peddling the nonexistent credit as a way for self-employed people and gig workers to receive big payments related to the COVID-19 pandemic. In reality, the underlying limited and technical credits referenced in these […]

Ransomware attack on car dealers

Recently, there was a ransomware attack aimed at car dealers. As a result, the IRS is warning individuals and businesses selling cars about evolving phishing and smishing scams. Scammers relentlessly pursue the sensitive financial and personal data of individuals, which they may use to steal identities or assets or install malicious software on victims’ computers. […]

Auditing warehouse operations

When you hear the word “audit,” you might automatically associate it with financial reporting or the IRS. But auditing warehouse operations might also be beneficial for some businesses, such as manufacturers, distributors and retailers. Awkward or repetitive movements by employees, oversized packages and disorganized layouts can slow down productivity and even lead to medical and […]