CBO reports budget deficit

The Congressional Budget Office (CBO) reported an estimated federal budget deficit of $622 billion in the first two months of fiscal year 2025. That amount is $242 billion more than the deficit recorded during the same period last fiscal year. Revenue receipts were $50 billion, down 7% compared to last fiscal year, and outlays were […]

Estimated tax payment due

If you make estimated tax payments and it looks like you’ve underpaid your 2024 tax, be sure to send your final 2024 payment by Wednesday, Jan. 15, 2025. Include all taxable income in your calculations, including income from independent consulting work, year-end bonuses, commissions, rental payments, stock dividends and digital asset sales. Paying by Jan. […]

Balancing the books: Regular bank reconciliations are essential for a successful business

How often do you reconcile your company’s internal financial records against your bank statements? Bank reconciliations are an essential internal control procedure that busy owners and managers sometimes overlook or neglect. Here’s why it pays to perform them regularly. Operational benefits Weekly or monthly bank reconciliations can improve the accuracy of your company’s financial records. […]

Social Media posts used as evidence in Tax Court

Can posts on social media be evidence in a tax dispute? In one case, the U.S. Tax Court said yes. The court allowed the IRS to present a woman’s blog posts as evidence. The taxpayer and her husband allegedly underpaid tax for multiple years. After the husband died, the wife sought “innocent spouse” relief, which […]

Secrets to a successful turnaround acquisition

IRS Whistleblower Office and it’s role in tax collection

The IRS Whistleblower Office (WBO) plays a key role in tax collection. The federal tax system relies on voluntary compliance, investigations, data analytics and information from people with knowledge of noncompliance. A tip that leads to collection of proceeds based on matters within the IRS’s jurisdiction may result in a valid claim for a cash […]

2025 IRA limits

The 2025 limit on IRA contributions is $7,000. The IRA catch-up contribution limit for those age 50 or older is $1,000. You can claim a deduction for a traditional IRA if you meet certain conditions. If you or your spouse are covered by a retirement plan at work, the deduction may be phased out until […]

Social Security Fairness Acts passes

Congress has passed a bill that changes the way beneficiaries of government pensions are treated for Social Security purposes. The Social Security Fairness Act was sent to President Biden for his signature. It eliminates a provision that reduces Social Security benefits for workers including police, firefighters, teachers and others who were employed by organizations with […]

Estimates due soon

It’s important for taxpayers who didn’t pay enough tax during 2024 to help avoid penalties by making a fourth quarter estimated tax payment by Jan. 15, 2025. Those who may need to make estimated payments include investors, gig workers and others with self-employment income. Also, it’s common for those who owed tax last year to […]

Senior tax-saving alert: Make charitable donations from your IRA

If you’ve reached age 70½, you can make cash donations directly from your IRA to IRS-approved charities. These qualified charitable distributions (QCDs) may help you gain tax advantages. QCD basics QCDs can be made from your traditional IRA(s) free of federal income tax. In contrast, other traditional IRA distributions are wholly or partially taxable, depending […]