Priority Guidance Plan

The IRS hasn’t yet released its 2022-2023 Priority Guidance Plan (a regulatory to-do list), but several items are expected to be on the agenda. This starts with components of the Inflation Reduction Act. Tax professionals have asked that corporate split-offs not be factored into the new 15% corporate alternative minimum tax in lieu of transition […]

Filing Deadline approaches

If you’re one of the nearly 19 million taxpayers who requested an extension to Oct. 17 to file your 2021 tax return, the IRS is reminding you to claim all the tax breaks you’re entitled to. “Each year, eligible taxpayers overlook money saving deductions and credits that can help them with the cost of raising […]

Self-employed? Build a nest egg with a solo 401(k) plan

Do you own a successful small business with no employees and want to set up a retirement plan? Or do you want to upgrade from a SIMPLE IRA or Simplified Employee Pension (SEP) plan? Consider a solo 401(k) if you have healthy self-employment income and want to contribute substantial amounts to a retirement nest egg. […]

Clean Vehicle Credit

When it comes to the Clean Vehicle Credit (CVC) introduced by the Inflation Reduction Act (IRA), the devil is in the details. The CVC is an update to the previous $7,500 credit for the purchase of a new electric vehicle (EV), with major changes that phase in over time. One change that went into effect […]

Tax records

Taxpayers who operate a business can generally deduct business-related costs on their income tax returns. But they must keep thorough, contemporaneous records proving that the deductions are for legitimate business expenses. An information technology consultant and handyman deducted the cost of professional education on his return. But the IRS found the amounts weren’t business-related because […]

Home sweet home: Do you qualify for office deductions?

If you’re a business owner working from home or an entrepreneur with a home-based side gig, you may qualify for valuable home office deductions. But not everyone who works from home gets the tax break. Employees who work remotely can’t deduct home office expenses under current federal tax law. To qualify for a deduction, you […]

Freedom of Information Act

Is the IRS improperly handling Freedom of Information Act (FOIA) requests? Taxpayers may request records from the IRS through the FOIA. To ensure that requests are properly handled, the Treasury Inspector General for Tax Administration (TIGTA) must annually review the process. After the IRS transitioned to an automated system (FOIAXpress), TIGTA reviewed a sample of […]

e-Postcard files need to use authentication

Tax-exempt organizations take note: Form 990-N (e-Postcard) filers need to use the IRS’s new authentication platform. In general, nonprofits are eligible to file the annual information return 990-N if they have annual gross receipts of $50,000 or less. Regardless of how they previously logged in, these nonprofits now have three options: 1) Sign in with […]

Are your risk-management practices keeping up with the times?

Risks abound in today’s uncertain marketplace. Nearly two-thirds of senior finance leaders said that the volume and complexity of corporate risks have changed “mostly” or “extensively” in the past five years, according to a new report published by the American Institute of Certified Public Accountants (AICPA) and North Carolina State University. Surprisingly, this report, 2022 […]

IRA causes form revisions

The Inflation Reduction Act (IRA) can be expected to require a few tax form adjustments. It appears that the IRS may revise Forms 941, 6755, 8794 and possibly others. Employers use these forms to claim the qualified small-business payroll tax credit for boosting research activities, which increased under the IRA. Section 13902 of the IRA […]