In Dec. 2022, the IRS agreed with critics and announced a delay in implementing a $600 de minimis threshold (from a $20,000 threshold) for reporting third-party settlement organization transactions. The IRS stated there would be a one-year “orderly transition” period instead. However, taxpayers that performed backup withholding (generally for payees without taxpayer ID numbers) in […]

According to the Congressional Budget Office (CBO), the federal budget deficit grew by 29% ($418 billion) in the first quarter of fiscal year (FY) 2023 over the same period in FY 2022. Meanwhile, receipts declined by 2%, or $26 billion. In its latest report, the CBO drills down on these totals. Individual income and payroll […]

House lawmakers have reintroduced proposed legislation to expand the Federal Insurance Contribution Act (FICA) tax tip credit. The bill would expand the credit, currently available to the food service industry, to “employer-based salon and beauty service” establishments. Tips are paid as a gratuity by customers directly to the workers providing the services. Employers are required […]

Absent congressional intervention, the federal government will soon reach its limit on the amount of money it’s authorized to borrow, according to U.S. Treasury Secretary Janet Yellen. The current limit was set on Dec. 16, 2021. If not raised (or suspended) once again, the limit will be met on Thursday, Jan. 19. “Once the limit […]

Does current tax law encourage charitable giving? According to National Taxpayer Advocate (NTA) Erin M. Collins in her annual report to Congress, the answer may be “no.” Donations to qualified charities can generally be deducted on the donor’s tax return. However, the donor must have received a written acknowledgement from the charity before filing a […]