Cleaning out your garage or closet may lead to a tax deduction

If your summer chore list includes cleaning out the garage and closets, you might have items to donate to a local charity. That’s not only generous, it might lead to tax savings (if you itemize deductions on your tax return). You’ll need to secure proper documentation from the qualified charities you donate to. Noncash donations […]

July 30 was National Whistleblower Appreciation Day

July 30 was National Whistleblower Appreciation Day. The IRS’s Whistleblower Office reports that from the time it issued its first award in 2007 through June 2024, it paid more than $1.2 billion in awards. This is based on successfully collecting $7 billion from noncompliant taxpayers. IRS awards paid to whistleblowers generally range between 15% and […]

IRS issues final regulations on inherited IRAs

The IRS has published new regulations relevant to taxpayers subject to the “10-year rule” for required minimum distributions (RMDs) from inherited IRAs or other defined contribution plans. The final regs, which take effect in 2025, require many beneficiaries to take annual RMDs in the 10 years following the deceased’s death. SECURE Act ended stretch IRAs […]

Hire a household employee?

If you’ve hired household employees this year, you may need to account for them in your tax planning. For tax purposes, household employees are individuals who you pay more than $2,700 in 2024 in return for providing services in your home. A worker is considered an “employee” if you control what work is performed by […]

Fraud also occurs by mail

You may already know that fraudsters frequently send emails and text messages that purport to be from the IRS but are actually attempts to steal your personal information. You may also know that the IRS primarily uses the U.S. Postal Service to communicate directly with taxpayers. However, be aware that some criminals also use snail […]

Certain charitable donations allow you to avoid taxable IRA withdrawals

If you’re a philanthropic individual who is also obligated to take required minimum distributions (RMDs) from a traditional IRA, you may want to consider a tax-saving strategy. It involves making a qualified charitable distribution (QCD). How it works To reap the possible tax advantages of a QCD, you make a cash donation to an IRS-approved […]

Lawmakers show support of expanding disclosure of tax information

Lawmakers are showing bipartisan support for legislation that would expand disclosure of certain individuals’ tax information to third parties. Recently, the U.S. House Ways and Means Committee unanimously advanced the Strengthening State and Tribal Child Support Enforcement Act to the full chamber. A similar bill is moving through the U.S. Senate. The House version would […]

IRS updates its online taxpayer tools

The IRS continues to make progress on expanding its online taxpayer services and tools. The tax agency’s Individual Online Account tool now offers improved features, including detailed refund status updates and comprehensive audit information, among other enhancements. Specifically, the tool gives taxpayers the ability to retrieve tax-related information from one source. It also allows them […]

Be aware of the tax consequences of selling business property

If you’re selling property used in your trade or business, you should understand the tax implications. There are many complex rules that can potentially apply. To simplify this discussion, let’s assume that the property you want to sell is land or depreciable property used in your business, and has been held by you for more […]

IRS shares new red flags on ERTC claims

To say that the Employee Retention Tax Credit (ERTC) has been troublesome for the IRS and some taxpayers is an understatement. Indeed, the IRS crackdown on ineligible ERTC claims came to light in July 2023, when the tax agency announced that it was shifting its ERTC review focus to compliance concerns. Now, the IRS has […]