GAO recommends changes to reporting on top IRS reported tax scams

Can you spot an abusive tax scheme? The IRS is currently aware of over 40 types of tax schemes marketed by promoters. These schemes help taxpayers illegally dodge the taxes they owe, causing the “tax gap” to widen. According to a report by the Government Accountability Office (GAO), the IRS needs to make it easier […]

State Corporate Income Tax Rates and Brackets for 2023

State Corporate Income Tax Rates and Brackets for 2023 https://bit.ly/3D9tyo8

Filing deadline approaching

Reminder: Employers and other businesses must file certain 2022 wage statements soon. Employers must file their copies of Form W-2, Wage and Tax Statement and Form W-3, Transmittal of Wage and Tax Statements with the Social Security Administration by Jan. 31, 2023. The Jan. 31 deadline also applies to Form 1099-NEC, Nonemployee Compensation, which is […]

Qualified appraisals on gifts of cryptocurrency

If you donate cryptocurrency to a charity, you may need a qualified appraisal, depending on the amount of the gift. In Chief Counsel Advice, the IRS denied a taxpayer’s charitable deduction of a cryptocurrency contribution because she didn’t obtain a qualified appraisal. The taxpayer argued that no appraisal was necessary for the $10,000 donation she […]

Tax-saving ways to help pay for college — once your child starts attending

If you have a child or grandchild in college — congratulations! To help pay for the expenses, many parents and grandparents saved for years in tax-favored accounts, such as 529 plans. But there are also a number of tax breaks that you may be able to claim once your child begins attending college or post-secondary […]

1099-K transition update

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 […]

Federal budget deficit grew 29%

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 […]

Forms W-2 and 1099-NEC are due to be filed soon

With the 2023 filing season deadline drawing near, be aware that the deadline for businesses to file information returns for hired workers is even closer. By January 31, 2023, employers must file these forms: Form W-2, Wage and Tax Statement. W-2 forms show the wages paid and taxes withheld for the year for each employee. They […]

FICA tax tip credit

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 […]

Debt Limit Reached

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 […]