Do you meet the burden of proof?

Taxpayers can generally deduct the ordinary and necessary costs of doing business, but they must keep adequate records to prove the costs are legitimate. When the owner of a welding business failed to file timely tax returns, the IRS issued a notice of tax deficiency for $183,239 plus penalties. He challenged the tax bill and […]

California storm relief

Victims of severe winter storms, flooding, landslides and mudslides in California that began March 9, 2023, have been granted tax relief, the IRS announced. Those who live in or have a business in the disaster areas now have until October 16, 2023, to file various individual and business tax returns and make tax payments. This […]

Is it a deductible medical expense?

What makes a medical expense deductible? The IRS recently posted a list of FAQs concerning the treatment of certain costs related to nutrition, wellness and overall health. Generally, to be deductible, medical care expenses must meet certain criteria, including that they must be incurred primarily to alleviate or prevent a physical or mental disability or […]

Missouri House passes tax cuts bill

Missouri House passes Republican bill cutting corporate, individual income taxes – AOL https://bit.ly/3K0jVw6

Can food be a deductible expense?

Under the tax code, food is a personal expense and generally not tax deductible. However, the cost of food may be deductible if: 1) it’s prescribed and taken solely to alleviate or treat an illness; 2) it isn’t part of a patient’s nutritional needs; and 3) a physician provides a statement describing these facts. In […]

National Taxpayer Advocate urges changes to funding allocation

The National Taxpayer Advocate Erin Collins is urging more funding to be allocated towards taxpayer services and modernizing outdated systems. She suggests that less emphasis be placed on audits and enforcement. After years of underfunding, the IRS lacks up-to-date technology and sufficient staff, according to Collins. Yet $45.6 billion of the $80 billion Inflation Reduction […]

Does Your State Levy a Capital Stock Tax?

Does Your State Levy a Capital Stock Tax? https://bit.ly/3K04HqI

EIC changes introduced

A group of U.S. House Democrats on the Ways and Means Committee recently reintroduced the Worker Relief and Credit Reform Act. If passed, the bill would expand the Earned Income Tax Credit (EITC). This includes extending EITC eligibility criteria, increasing credit amounts and creating an advance payment regime administered by the IRS. The proposed bill’s […]

Where’s my refund?

Did you file your tax return and now wonder when to expect your refund? Check out the Where’s My Refund? web-based tool. If your return was e-filed, you can check its status within 24 hours after the IRS acknowledges receipt of the return. If you filed a paper return, allow four weeks before checking the […]

Changes in Sec. 174 make it a good time to review the R&E strategy of your business

It’s been years since the Tax Cuts and Jobs Act (TCJA) of 2017 was signed into law, but it’s still having an impact. Several provisions in the law have expired or will expire in the next few years. One provision that took effect last year was the end of current deductibility for research and experimental […]