The future of accounting: How to embrace cutting-edge technology

Technology is transforming the accounting profession. When businesses moved from paper ledgers to spreadsheets, it improved the timeliness, accuracy and integrity of accounting-related data. Likewise, cloud computing and the ability to remotely access real-time data have allowed accounting departments to be far more responsive to an increasingly distributed workforce. Artificial intelligence (AI) is the latest […]

Accuracy related penalty imposed for unreported income

Federal tax law defines gross income as income from all sources, unless excluded by law. In one case, a married couple was assessed an accuracy-related penalty for unreported income from illegal marijuana manufacturing and sales. The couple argued that the IRS lacked direct evidence linking them to any income-producing activity related to marijuana. However, if […]

Make these 5 New Year’s resolutions to avoid scams this year

Make these 5 New Year’s resolutions to avoid scams this year – USA TODAY https://bit.ly/3NQcmtw

When are estimated tax payments due in 2024?

IRS ‘Pay Up’ Letters Start Arriving in Millions of Mailboxes

IRS ‘Pay Up’ Letters Start Arriving in Millions of Mailboxes Next Week – The Messenger https://bit.ly/3vo8XLV

Regulations proposed for energy efficient home improvement credit

The IRS announced that it will propose regulations to implement the product identification number (PIN) requirement with respect to the energy efficient home improvement credit. Beginning Jan. 1, 2023, the credit (subject to certain limits and caps) is equal to 30% of the total amount paid for certain qualified expenses. These include qualified energy efficiency […]

Don’t overlook taxes when contemplating a move to another state

When you retire, you may think about moving to another state — perhaps because the weather is more temperate or because you want to be closer to family members. Don’t forget to factor state and local taxes into the equation. Establishing residency for state tax purposes may be more complex than you think. Pinpoint all […]

Bill Introduced to revoke tax-exempt status of large sports leagues

A bipartisan bill has been introduced in the U.S. House of Representatives that would revoke the tax-exempt status of certain sports leagues. The bill is aimed at the reported merger of the PGA and LIV Golf, a venture backed by Saudi Arabia. Introduced by Rep. Mike Thompson (D-CA) and Rep. Vern Buchanan (R-FL), the bill […]

Court awards and out-of-court settlements may (or may not) be taxed

Monetary awards and settlements are often provided for an array of reasons. For example, a person could receive compensatory and punitive damage payments for personal injury, discrimination or harassment. Some of this money is taxed by the federal government, and perhaps by state governments. Hopefully, you’ll never need to know how payments for personal injuries […]

GAO reports on Sole Proprietor Compliance

The IRS attributes approximately $80 billion in unpaid taxes to sole proprietors underreporting their incomes each year. That’s according to a recent Government Accountability Office (GAO) report. The $80 billion comprises 16% of the estimated annual $496 billion “tax gap.” It is generally defined as the difference between federal income tax owed and the amount […]