IRS rejects more than 20,000 refund claims for pandemic-related tax credit

IRS rejects more than 20,000 refund claims for pandemic-related tax credit – CNBC https://bit.ly/3t5QwuM

Initial beneficial ownership reporting extended to 90 days

The Financial Crimes Enforcement Network has extended the deadline for new entities to file their initial beneficial ownership information (BOI) reports. Reporting entities created in 2024 will now have 90 calendar days (instead of 30) from the date of their creation to file their BOI reports. This extension applies only to reporting entities created in […]

The EV clean vehicle tax credit

Not all electric vehicles (EVs) will qualify for the clean vehicle tax credit. Specifically, EVs placed in service in 2024 won’t be eligible if their battery components are manufactured by a foreign entity of concern (FEOC). EVs placed in service beginning in 2025 mustn’t have batteries containing applicable critical minerals extracted, processed or recycled by […]

Cigarette Taxes and Cigarette Smuggling by State

Cigarette Taxes and Cigarette Smuggling by State, 2021 https://bit.ly/486bw3f

The IRS Whistleblower Office

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 […]

Do I need to report funds received?

Federal tax law defines gross income as income from all sources, unless excluded by law. Amounts received for personal injuries or personal sickness are excluded from taxation. In one case, a formerly married couple received a settlement in exchange for vacating their apartment. Neither reported the amounts on their separate tax returns. In U.S. Tax […]

IRS delays new reporting rule for online payment processors

For the second consecutive year, the IRS has postponed implementation of a new rule that would have led to an estimated 44 million taxpayers receiving tax forms from payment apps and online marketplaces such as Venmo and eBay. While the delay should spare such taxpayers some confusion, it won’t affect their tax liability or income reporting responsibilities. And […]

IRS issues guidance on donor-advised funds

Earlier this month, the IRS issued long-awaited guidance on donor-advised funds (DAFs). As proposed regulations define them, DAFs are accounts maintained by “sponsoring organizations” and funded by charitable donors who retain advisory privileges regarding distribution of their accounts’ holdings. Distributions made to individuals or for non-charitable purposes are taxable, but non-taxable distributions can be made […]

New regulations clarify when part time employees must be allowed in employer 401k plans

New IRS proposed reliance regulations clarify when employers must allow long-term, part-time (LTPT) employees to participate in their 401(k) plans. The SECURE and SECURE 2.0 Acts changed the length of service needed before LTPT workers can participate. Starting in 2025, they’re eligible to contribute to their employer’s retirement plans after working 500 hours during two […]

Don’t forget to empty out your flexible spending account

If you have a tax-saving flexible spending account (FSA) with your employer to help pay for health or dependent care expenses, there’s an important date coming up. You may have to use the money in the account by year-end or you’ll lose it (unless your employer has a grace period). As the end of 2023 […]