What to do if you receive another taxpayers information from the IRS

Mistakes happen, even at the IRS. For example, you may receive an IRS document that isn’t meant for you. The National Taxpayer Advocate (NTA) calls that an inadvertent unauthorized disclosure. It may arrive by postal mail, email, fax or electronic transmission. What should you do? The NTA says to notify the IRS using the phone […]

Is an Offer In Compromise right for you?

Individuals with federal tax debts may seek an offer in compromise (OIC). This IRS program allows qualifying taxpayers to settle a debt for less than is owed, or pay over a longer period, if the IRS agrees. However, most OICs are rejected. In addition, the IRS wants the public to beware of OIC “mills” that […]

Navigating tax complexities: Craft partnership agreements and LLC operating agreements with precision

Partnerships are often used for business and investment activities. So are multi-member LLCs that are treated as partnerships for tax purposes. A major reason is that these entities offer federal income tax advantages, the most important of which is pass-through taxation. They also must follow some special and sometimes complicated federal income tax rules. Governing […]

US Senate Finance Committee holds hearings on tax system

The U.S. Senate Finance Committee recently held a hearing to consider how to make the U.S. tax system more fair. The hearing included research released by the Joint Committee on Taxation (https://bit.ly/47tVUrn). The lawmakers discussed taxing the ultra-wealthy, how to simplify reporting and the degree to which taxes should be “progressive.” Chair Ron Wyden (D-OR) […]

Fed reduces Benchmark borrowing rate

On Sept. 18, 2024, the U.S. Federal Reserve (Fed) reduced its benchmark federal funds rate by 0.50 percentage points, with more cuts expected in coming months. This is good news for consumers with adjustable-rate debt (for example, credit card interest) and those hoping to finance a car or home purchase. State and local governments will […]

Strong internal controls and audits can help safeguard against data breaches

The average cost of a data breach has reached $4.88 million, up 10% from last year, according to a recent report. As businesses increasingly rely on technology, cyberattacks are becoming more sophisticated and aggressive, and risks are increasing. What can your organization do to protect its profits and assets from cyberthreats? Recent report In August […]

The refundable premium tax credit

The premium tax credit (PTC) is a refundable credit that helps eligible individuals cover their premiums for health insurance purchased through the Health Insurance Marketplace. A PTC is allowed for months that are considered “coverage months.” Proposed IRS regulations would amend the definition of a coverage month. As proposed, when computing a PTC, a month […]

Help a loved one buy a home — with a loan

IRS issues regulations on inherited property consistent-basis requirements

Eight years after issuing proposed regulations, the IRS has finalized regs on inherited property consistent-basis requirements. The Internal Revenue Code requires consistent-basis reporting between an estate and beneficiaries who acquire property from the estate. If an estate is required to file a federal estate tax return, Section 1014(f) provides that the basis reported by persons […]

Innocent Spouse Relief

Spouses filing joint federal tax returns are generally both liable for the tax owed. But they may be eligible for innocent spouse relief. In one case, a husband was the sole owner of an engineering firm. The IRS audited their joint tax returns after their divorce and found that the couple had tax deficiencies of […]