Generally, when individuals borrow money, they’re obligated to repay the debts. If the lender subsequently does a cancellation of debt (COD), the borrower may have to include all or part of the COD amount in gross income. Exclusions exist, such as when the debtor is insolvent (defined as when liabilities exceed assets) at the time […]
Read More Is Cancellation of debt taxable?The IRS is sending follow-up mailings to taxpayers in several states affected by natural disasters to let them know that they have additional time to pay their taxes. Specifically, the new notices will be sent to residents in designated disaster areas in AL, AR, CA, FL, GA, IN, MS and TN who received CP14 notices […]
Read More Disaster declarations give more time to payAccrual-basis financial statements are considered by many to be the gold standard in financial reporting. But with the increasing cost and complexity of today’s accounting rules — in particular, the updated lease guidance that went into effect last year — some private companies are seeking a simpler alternative to U.S. Generally Accepted Accounting Principles (GAAP). […]
Read More Why some small businesses are switching to tax-basis reportingDo you file and forget? In other words, do you put taxes out of your mind as soon as you file your tax return? You shouldn’t. The IRS has published some action steps to take throughout the year that may affect the tax you owe or the refund you may receive next year. Begin by […]
Read More File and Forget?While the value of virtual currency continues to fluctuate, the IRS’s interest in it has only increased. In 2021, for example, the agency launched Operation Hidden Treasure to root out taxpayers who don’t report income from cryptocurrency transactions on their federal income tax returns. Moreover, the Inflation Reduction Act, enacted in 2022, allocated $80 billion to the […]
Read More Virtual currency lands in the IRS’s crosshairs“America was built on courage, on imagination and an unbeatable determination to do the job at hand.” -Harry S. Truman Wishing you a happy and safe 4th of July!
Read More Happy 4th of July!The Treasury Inspector General for Tax Administration (TIGTA) has completed another audit of IRS processes for the 2021 advance Child Tax Credit (CTC). The American Rescue Plan Act enabled eligible taxpayers to receive up to one half of their estimated 2021 CTC in advance monthly payments for part of the year. As a result, the […]
Read More TIGTA completes audit of Child Tax CreditSources of Personal Income, Tax Year 2020 https://bit.ly/3r8Bdjv
Read More Sources of Personal Income, Tax Year 2020The U.S. Supreme Court has agreed to hear a constitutional challenge to a tax established by the Tax Cuts and Jobs Act. The taxpayers, a married couple, owned shares in a controlled foreign corporation (CFC). This made them subject to the mandatory repatriation tax (MRT), which says that owners of 10% or more shares of […]
Read More SCOTUS agrees to hear case on Tax Cuts and Jobs ActHow High Are Beer Taxes in Your State? https://bit.ly/3NB2wdO
Read More How High Are Beer Taxes in Your State?
