IRS warns on clean energy tax credit scam

The IRS is warning taxpayers of a scam involving clean energy tax credits. Under the Inflation Reduction Act (IRA), taxpayers can purchase tax credits for eligible investments in clean energy to offset income tax liability. The IRS has seen an increase in Forms 1040 filed by unscrupulous tax return preparers with purchased clean energy credits […]

Best practices for expense reporting

When it comes to expense reporting, having rigorous financial controls is critical to operating a profitable business. You should monitor expenditures incurred by employees on behalf of the company. This enables your organization to track spending, control costs and maintain accurate financial records. Establishing and adhering to strong policies, using technology correctly and complying with […]

Is my business travel tax deductible?

Before traveling for business, it’s important to know what’s tax deductible. To qualify, travel must take a taxpayer away from home or the main place of work for business reasons, and the demands of the work must be such that the taxpayer must sleep away from home. The expense must be ordinary, necessary, not lavish […]

WBO reports on cash award to whistleblowers

Taxpayers who give the IRS Whistleblower Office (WBO) credible information about unpaid taxes may qualify for cash awards. The program has been around for a long time in some form. According to a recent WBO report, the number of awards shrank a bit in fiscal year 2023 from FY 2022, but the dollar value more […]

What you need to know about the NIIT

A reminder from the IRS concerning marijuana

The IRS is reminding the public that, for the time being, marijuana remains a Schedule 1 controlled substance. Although the U.S. Justice Dept. published a notice of proposed rulemaking with the Federal Register on May 21, 2024 to initiate formal rescheduling of marijuana, no final rule has been published. Until that happens, businesses that sell […]

IRS and US Treasury propose regulations for recapture of inaccurate COVID claims

Many businesses received financial help from the government during the pandemic, but there was also a lot of fraud. The IRS and U.S. Treasury Dept. have proposed regulations that will allow them to recapture funds that were inaccurately refunded to employers for COVID tax credits. Employers may be affected if they claimed the paid sick […]

Will some type of tax advantaged universal savings account come to the US?

Some type of universal savings account is currently available in the United Kingdom and Canada, and the concept is very popular. Could this savings vehicle be coming to the United States? The Cato Institute, in a mid-June report, urged Congress to create a universal savings account where “income saved in the account would be taxed […]

Hiring your child to work at your business this summer

With school out, you might be hiring your child to work at your company. In addition to giving your son or daughter some business knowledge, you and your child could reap some tax advantages. Benefits for your child There are special tax breaks for hiring your offspring if you operate your business as one of […]

IRS issued final regulations on stock repurchase excise tax

The IRS issued final regulations on how to report and pay the 1% excise tax owed on corporate stock repurchases. The excise tax is equal to 1% of the aggregate fair market value of stock repurchased by certain corporations during the taxable year. The final regs affect publicly traded domestic corporations that repurchase their stock […]