Former IRS Commissioners comment on IRA funding

Three former IRS commissioners said that the agency can best use its 10-year, $80 billion appropriation from the Inflation Reduction Act by improving its audit selection process rather than merely increasing the number of audits. The trio agreed that the money should also be put toward investments in technology that reduce the chance of a […]

Happy Thanksgiving

“I can no other answer make but thanks, and thanks, and ever thanks.”– William Shakespeare, Twelfth Night We wish you and your family a blessed and happy Thanksgiving. And thank you, thank you, thank you…

Lame Duck Session

With the 2022 midterm election mostly in the rearview mirror, the congressional agenda for the upcoming lame duck session is beginning to come into view. Senate Finance Committee Chairman Ron Wyden (D-OR) said: “There’s going to be a clear debate about tax choices, and this whole debate about the child tax credit is front and […]

Computer software costs: How does your business deduct them?

These days, most businesses buy or lease computer software to use in their operations. Or perhaps your business develops computer software to use in your products or services or sells or leases software to others. In any of these situations, you should be aware of the complex rules that determine the tax treatment of the […]

The Trust Fund Recovery Penalty

Employers that withhold taxes from wages but don’t pay them over to the IRS may face a penalty of 100% of the unpaid tax. The Trust Fund Recovery Penalty (TFRP) can be assessed personally against “responsible” parties. In one case, a corporation owner’s daughter/corporate officer was assessed a TFRP of $680,472 for unpaid payroll taxes. […]

The IRS is hiring

The IRS is set to hire a new wave of customer service reps, to end staff shortages and ensure taxpayers can access the help they need. That’s one of the key purposes of the $80 billion allotted to the agency as part of the Inflation Reduction Act. “If the IRS does not make significant changes, […]

How savings bonds are taxed

Many people have savings bonds that were purchased many years ago. Perhaps they were given to your children as gifts or maybe you bought them yourself. You may wonder how the interest you earn is taxed. And if they reach final maturity, what action do you need to take to ensure there’s no loss of […]

Courts rule on student loan forgiveness plan

A U.S. District Court in Texas ruled on Nov. 10 that President Biden’s student loan debt relief plan is unlawful. On Aug. 24, 2022, Biden announced a student loan forgiveness plan that further extends the suspension of collection actions and wage garnishment. It also allows for a certain amount of debt forgiveness for eligible individuals […]

IRS Office of Appeals issues Focus Guide

The IRS Independent Office of Appeals has come under some criticism, most recently by members of the American Institute of Certified Public Accountants. But Appeals claims it’s “taking important steps to expand communications with external stakeholders and to improve taxpayer access.” It has just released its fiscal year 2023 Focus Guide, which provides details on […]

Preparing for year-end inventory counts

How accurate is the amount reported in your company’s perpetual inventory system? To best answer that question, a physical count is essential at year end. For calendar-year entities, year end is fast approaching on December 31. Planning tips Though physical counts may be seen as time consuming and disruptive, a well-executed count of what’s on-hand […]