CBO scores budget deficit

The Congressional Budget Office (CBO) estimated that the federal budget deficit for the first 10 months of fiscal year 2022 was $727 billion, with an expectation that “the total deficit for 2022 will be close to the $1 trillion estimate” it published in May. “That deficit projection doesn’t include costs for a possible executive action […]

Why an LLC might be the best choice of entity for your business

The business entity you choose can affect your taxes, your personal liability and other issues. A limited liability company (LLC) is somewhat of a hybrid entity in that it can be structured to resemble a corporation for owner liability purposes and a partnership for federal tax purposes. This duality may provide you with the best […]

Inflation Reduction revenue target

The IRA will raise revenue through a new 15% minimum tax on large, profitable corporations and a 1% excise tax on stock buybacks. The bill is intended to reduce the U.S. deficit by about $300 billion. Other revenue would come from stricter enforcement of tax compliance by the IRS. The IRA also includes significant provisions […]

Receive an IRS letter?

Have you ever received a letter from the IRS? Some people may get a little panicky from unexpected IRS attention. They might even tuck an unopened letter into a drawer, hoping it will go away. But not all IRS correspondence is scary. It might be a notice of a change to your account. Generally, IRS […]

An “innocent spouse” may be able to escape tax liability

When a married couple files a joint tax return, each spouse is “jointly and severally” liable for the full amount of tax on the couple’s combined income. Therefore, the IRS can come after either spouse to collect the entire tax — not just the part that’s attributed to one spouse or the other. This includes […]

Crowdfunding, is it taxable?

Is income from crowdfunding taxable? It’s a popular way to raise money for emergencies, charities, businesses and more. But the funds could be taxable. Under federal law, gross income is income from all sources, unless it’s excluded by law, such as a gift. For crowdfunded donations to qualify as gifts, certain conditions must be met. […]

Missouri Storm Relief

After extending tax filing and payment deadlines for Kentucky victims of recent storms, the IRS has now offered the same relief to qualified Missouri residents and businesses. For regular tax deadlines between July 26 and Nov. 15, the extended deadline is Nov. 15. This includes returns that received a 2021 tax return extension to Oct. […]

Cyber risks: A critical part of your auditor’s risk assessment

As businesses and not-for-profit entities increasingly rely on technology, cyberthreats are becoming more sophisticated and aggressive. Auditors must factor these threats into their risk assessments. They can also help you draft cybersecurity disclosures and brainstorm ways to mitigate your risk of an attack. Increasing risks How much does a data breach cost? The average has […]

Advance Child Tax Credit payments

One of the provisions of a 2021 law was that the IRS developed an online portal enabling taxpayers to unenroll from receiving advance Child Tax Credit payments. The IRS released an updated website in Jan. 2022 to address the required functionality. But a recent audit by the Treasury Inspector General for Tax Administration (TIGTA) found […]

CHIPS Act includes tax credits for manufacturers

After months of political fighting, President Biden on August 9 signed the CHIPS and Science Act into law. This is a semiconductor manufacturing and economic competitiveness package that includes an investment tax credit for semiconductor manufacturing facilities and equipment. The $280 billion law includes more than $52 billion for U.S. companies producing computer chips, as […]