More Disaster relief announced

Due to wildfire destruction, the IRS recently announced tax relief for certain parts of Arizona and Washington state. And, of course, the agency has issued several tax relief notices in recent days to assist victims of Hurricanes Helene and Milton in seven southeastern states. In general, many 2024 filing and payment deadlines have been postponed […]

How will the 2025 inflation adjustment numbers affect your year-end tax planning?

The IRS has issued its 2025 inflation adjustment numbers for more than 60 tax provisions in Revenue Procedure 2024-40. Inflation has moderated somewhat this year over last, so many amounts will increase over 2024 but not as much as in the previous year. Take these 2025 numbers into account as you implement 2024 year-end tax planning […]

TIGTA issues report on IRS spending

The Treasury Inspector General for Tax Administration recently issued a report on IRS spending under the Inflation Reduction Act (IRA). It found the IRS has spent nearly $6.9 billion of its approximately $57.8 billion in IRA funding through the third quarter of fiscal year 2024. Notably, the IRS has used supplemental IRA funding to fund […]

Will the R+D Credit be fixed?

For more than 70 years, the U.S. tax code allowed companies to currently deduct certain research and development (R&D) expenses. This benefitted manufacturers and businesses in other industries. However, under the Tax Cuts and Jobs Act, since 2022, companies have had to amortize R&D costs over a period of years. Specifically, R&D expenses covered under […]

Can homeowners deduct seller-paid points as the real estate market improves?

The recent drop in interest rates has created a buzz in the real estate market. Potential homebuyers may now have an opportunity to attain their dreams of purchasing property. “The recent development of lower mortgage rates coupled with increasing inventory is a powerful combination that will provide the environment for sales to move higher in […]

What is third-party representation?

If the IRS contacts you about a specific tax matter, you can authorize a third party to handle it on your behalf. It could be a relative, friend or a tax pro at our firm, as long as you grant formal permission. You can do this by assigning your power of attorney to a person […]

IRS warns on scam related to disasters

Americans are generous, especially when disasters strike. In the wake of the devastation caused by Hurricanes Milton and Helene, the IRS is cautioning taxpayers that this is a prime time for scammers to use fake charities to target the public. IRS Commissioner Danny Werfel warned that “Too often, criminals take advantage of would-be donors’ kindness […]

Understanding your obligations: Does your business need to report employee health coverage?

Employee health coverage is a significant part of many companies’ benefits packages. However, the administrative responsibilities that accompany offering health insurance can be complex. One crucial aspect is understanding the reporting requirements of federal agencies such as the IRS. Does your business have to comply, and if so, what must you do? Here are some […]

IRS updates on the processing of ERTC claims

What’s new with the IRS’s Employee Retention Tax Credit (ERTC) investigations? The agency has announced that it’s currently processing approximately 400,000 ERTC claims. This batch includes eligible and ineligible claims, with the eligible claims having an estimated value of $10 billion. Those filers deemed eligible can expect to receive refund checks in the mail in […]

Tax Gap estimate update provided by the IRS

The “tax gap” is the difference between what the IRS estimates as the U.S. tax liability and the amount of tax that’s actually paid on time. Recently, the IRS announced its tax gap estimate for tax year (TY) 2022 is $606 billion, less than the TY 2021 estimated gap of $617 billion. A majority of […]