Who is audited and why are they audited part of questions to Treasury Secretary

In a recent U.S. House Appropriations Financial Services and General Government Subcommittee hearing, Treasury Secretary Scott Bessent discussed several topics, including how the IRS would ensure the equitable distribution of enforcement actions. Bessent said the agency was reviewing current processes, including “who is audited and why they are audited.” Committee members, including some Republicans, expressed […]

Owing a home can be beneficial at tax time

Purchasing a home is the most significant investment most people will make. Owning your home comes with valuable tax advantages that can reduce your annual tax bill. One of the primary benefits is the mortgage interest deduction, which allows homeowners to deduct the interest paid on mortgage loans, up to certain limits. This can be […]

An education plan can pay off for your employees — and your business

Your business can set up an educational assistance plan that can give each eligible employee up to $5,250 in annual federal-income-tax-free and federal-payroll-tax-free benefits. These tax-favored plans are called Section 127 plans after the tax code section that allows them. Plan basics Sec. 127 plans can cover the cost of almost anything that constitutes education, including […]

IRS workforce reduced, Will AI fill the gap?

A new report from the Treasury Inspector General for Tax Administration (https://bit.ly/4m4QAS9 ) states that between Jan. and March 2025, the overall IRS workforce decreased by 11%. More specifically, 31% of IRS employees fired were revenue agents and 5% worked in information technology (IT). Treasury Secretary Scott Bessent told a House subcommittee that the current […]

Offer in Compromise

If taxpayers can’t pay the tax they owe in full, one option is to seek an offer in compromise (OIC) from the IRS. That’s a way to potentially settle the debt for less than you owe. The IRS states it will generally accept a reasonable offer. Be aware, the tax agency will first do a […]

Estimating fair value today

Many balance sheet items are reported at historical cost. However, current accounting standards require organizations that follow U.S. Generally Accepted Accounting Principles (GAAP) to report certain assets and liabilities at “fair value.” This shift aims to enhance transparency and reflect an entity’s current financial position more accurately. However, estimating fair value can involve significant judgment […]

Summer Camp expenses may count toward Child Care Credit

Most kids will soon be out of school for the summer and many will head to summer camp. Sending your child to a summer day camp while you work may count as an expense toward the federal Child and Dependent Care Credit. Under current law, this credit ranges in value from 20% to 35% of […]

Tax Exempt organizations exemptions under fire

Tax-exempt status means that qualified not-for-profit organizations are exempt from paying federal income and property taxes. It also enables donors to nonprofits to potentially deduct their contributions. Recently, President Trump called for the IRS to rescind Harvard University’s tax-exempt status. Historically, both Republicans and Democrats have declared that certain nonprofits should lose their exemptions. But […]

Fun for kids, tax savings for you

2026 Federal Budget Proposal released

President Trump has released his 2026 federal budget proposal. It allocates $1.7 trillion in spending, including increases to defense and homeland security. It cuts $163 billion from other agencies, including double-digit percentages to Labor, Agriculture, the Small Business Administration and Commerce, as well as from scientific research and safety net programs. The IRS would lose […]