IRS guidance coming regarding the IRA’s Clean Vehicle Credit

The Inflation Reduction Act (IRA) extended and expanded the Section 30D Clean Vehicle (CV) Credit, previously known as the Electric Vehicle (EV) Credit. The credit now covers “clean vehicles,” which include plug-in hybrids, hydrogen fuel cell cars and EVs. On April 17, 2023, the IRS will publish proposed regulations to clarify how a CV can qualify for the credit. […]

IRS uses bank deposits analysis for underreporting of income

If the IRS suspects a taxpayer isn’t reporting all income, it may conduct a “bank deposits analysis” to compare deposits with what the taxpayer reported. In one case, the IRS analyzed the bank deposits of a man who held multiple accounts in his name and in the names of his businesses. The IRS argued he […]

Will the New Markets Tax Credit be permanent?

Bipartisan legislation introduced in Congress would make the New Markets Tax Credit (NMTC) permanent. Currently, it’s set to expire on Dec. 31, 2025. The NMTC program helps economically distressed communities attract private capital by providing investors with a 39% nonrefundable federal tax credit. Since 2000, the U.S. Treasury Department has used the NMTC to make […]

Missouri Tax Package Would Set State Up for Success

Missouri Tax Package Would Set State Up for Success https://bit.ly/3mBTFiv

Reactions to IRS strategic plan

Reactions following the April 6 release of the IRS’s $80 billion spending plan were swift, not to mention, mixed. U.S. House Ways and Means Chair Jason Smith (R-MO) complained that the plan lacks specifics on items such as hiring and audits. And many Republicans are speculating that the IRS intends to boost audits of middle-class […]

TIGTA releases audit of IRS systems

The IRS made positive strides during the 2022 tax filing season, but work remains to shore up lingering areas of concern, according to a Treasury Inspector General for Tax Administration (TIGTA) audit. TIGTA found that by July 1, 2022, all 2020 paper tax returns were processed, but 9.5 million 2021 paper tax returns remained unprocessed. […]

The tax advantages of hiring your child this summer

Summer is around the corner so you may be thinking about hiring young people at your small business. At the same time, you may have children looking to earn extra spending money. You can save family income and payroll taxes by putting your child on the payroll. It’s a win-win! Here are four tax advantages. […]

IRS strategic plan outlines initiatives

New IRS Commissioner Danny Werfel has released his strategic operating plan for the nearly $80 billion allocated to the IRS by the Inflation Reduction Act. Werfel said the plan outlines “42 specific initiatives designed to achieve IRS goals.” The 150-page plan focuses on three main components: customer service, compliance efforts and technology updates. Regarding customer […]

When can I deduct a casualty loss?

You can generally deduct casualty losses related to your home, household items and vehicles if the loss is caused by a federally declared disaster. Deductions are subject to limits and must be unreimbursed. Taxpayers must show the change in the property’s value before and after the damage. One married couple claimed a nearly $740,000 casualty […]

The tax rules for donating artwork to charity

If you’re an art collector, you may wonder about the tax breaks available for donating a work of art to charity. Several different tax rules may come into play in connection with such contributions. Basic rules Your deduction for a charitable contribution of art is subject to be reduced if the charity’s use of it […]