The IRS gets sued

The CEO of global investment firm Citadel, Ken Griffin, is suing the IRS and the U.S. Dept. of Treasury, alleging his tax return information was unlawfully disclosed. Griffin’s complaint accuses the IRS of willful or grossly negligent unauthorized disclosure, arguing that IRS systems are “vulnerable to, among other things, malicious efforts by IRS employees or […]

Do you qualify for the QBI deduction? And can you do anything by year-end to help qualify?

If you own a business, you may wonder if you’re eligible to take the qualified business income (QBI) deduction. Sometimes this is referred to as the pass-through deduction or the Section 199A deduction. The QBI deduction is: Available to owners of sole proprietorships, single member limited liability companies (LLCs), partnerships, and S corporations, as well […]

IRS 2022 financial report published

The IRS has published its fiscal year 2022 financial report. The report highlights the agency’s fiscal actions and financial management activities for the period of Oct. 1, 2021, through Sept. 30, 2022. According to the report, during 2022, the IRS processed 260 million federal tax returns and other forms and collected $4.9 trillion in gross […]

Tracking Percentage of business use of assets

If you’re a business owner hoping to deduct asset depreciation from your gross income, it’s crucial to track the percentage of business use of assets. In one case, a married couple were long-time farmers. They deducted large amounts of depreciation on farm equipment and vehicles over several years, but they failed to track the business […]

Budget work continues

As both houses of Congress continue to work toward agreement on a funding bill covering fiscal 2023, they approved a one-week short-term funding extension on Dec. 15. This continuing resolution (CR) keeps the government funded until Dec. 23, giving Congress more time to pass an omnibus bill, which requires agreement on 12 separate bills. Some […]

Deferred Social Security Tax is Due

If you own a business or are self employed and you deferred part of your Social Security tax in 2020, the second installment of the deferred amount is due Dec. 31, 2022. To pay, you can use the Electronic Federal Tax Payment System (EFTPS.gov). On the “type of tax” screen, choose “Deferred Social Security Tax” […]

How to report software costs

What do Tesla cars, smart TVs and equipment used for making french fries have in common? The answer is embedded software, according to recent comments by Financial Accounting Standards Board (FASB) Vice Chair James Kroeker. He also told the Private Company Council that today’s mixed accounting model for software costs is outdated and should be […]

Supreme Court takes up IRS collection notification issue

Must the IRS notify third parties when it summons bank records in an effort to collect a person’s unpaid taxes? Several circuit courts are divided over the issue and the U.S. Supreme Court has agreed to take it up. The Court will decide whether the IRS need only notify third parties if a delinquent taxpayer […]

IRS issues RMD reminder

The IRS is reminding those who were born in 1950 or earlier that they must soon begin taking required minimum distribution (RMDs) from their IRAs or other retirement plan accounts. Generally, RMDs are the minimum amounts that IRA and retirement plan account owners age 72 and older must annually withdraw from their accounts. Depending on […]

Deducting business startup costs