The Social Security Administration (SSA) has announced that for 2024 the maximum earnings subject to Social Security tax will increase $8,400, from $160,200 to $168,600. The $168,600 wage base for 2024 is slightly greater than the wage base forecasted by the SSA’s Office of the Chief Actuary back in April. In addition, the SSA announced […]
Read More SSA releases 2024 wage baseMany Americans own a vacation home or aspire to purchase one. If you own a second home in a waterfront community, in the mountains or in a resort area, you may want to rent it out for part of the year. The tax implications of these transactions can be complicated. It depends on how many […]
Read More The tax implications of renting out a vacation homeTaxpayers who owe more federal taxes than they can pay may be able to seek an Offer in Compromise (OIC) with the IRS. An OIC allows a taxpayer to settle a debt for less than owed, or to enter an agreement for more time to pay, if paying the total would cause financial hardship. In […]
Read More Offer in CompromiseIf the IRS wants to talk to you about a specific tax matter, you can authorize a third-party to handle it on your behalf. But whether it’s an unpaid friend or relative or a paid tax pro, you must grant them formal permission. That can take several forms, such as assigning your power of attorney […]
Read More Who can represent me before the IRS?Ever wonder how IRS examiners know about different industries so they can audit various businesses? They generally do research about specific industries and issues on tax returns by using IRS Audit Techniques Guides (ATGs). A little-known fact is that these guides are available to the public on the IRS website. In other words, your business […]
Read More How IRS auditors learn about your business industryThis holiday season, you may want to make cash gifts to loved ones. The annual gift tax exclusion for 2023 is $17,000 ($34,000 for married couples). You can give up to that amount to an unlimited number of people by Dec. 31, and the gifts will be exempt from gift tax, the generation-skipping tax and […]
Read More Gift Tax exclusions limitsIn recent months, the IRS has repeatedly indicated that it intends to focus audit activity on affluent taxpayers with more than $400,000 in annual income, large partnerships and big corporations. Taxpayers in these groups should, therefore, be prepared for extra scrutiny. You may want to review tax filings from the past three years to ensure […]
Read More IRS to focus audits on Affluent taxpayersEvery fall, CPAs are busy preparing for audit season, which generally runs from January to April each year. This includes meeting with clients, assigning staff and scheduling fieldwork. Likewise, organizations with calendar year ends should prepare for audit fieldwork. A little prep work this fall can help facilitate the process, minimize adjustments and surprises, and […]
Read More 4 ways to prepare for next year’s auditThe IRS is warning taxpayers about an art donation scheme. Fraudsters are encouraging high-income taxpayers to purchase artwork at “discounted” prices and then wait a year before donating the pieces at inflated fair market values, which are typically significantly higher than the purchase prices. These are the amounts that taxpayers will use for deductible charitable […]
Read More IRS warns of schemeFederal Deficit Grew to $2 Trillion in FY 2023 https://bit.ly/3QgxYAx
Read More Federal Deficit Grew to $2 Trillion in FY 2023
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