17 states give inflation relief check

If you file taxes in these 17 states, you could be getting an inflation-relief check from the government—here’s who qualifies – CNBC https://cnb.cx/3egyLBl

Tax penalties?

Do you have questions about tax payments and possible penalties? Of course, we can answer any questions. In addition, the IRS has a web page that explains options for paying your tax bill, including what to do if you owe more than you can pay now. You may be able to request a payment plan. […]

Capital Gain relief for Farmers

Farmers and ranchers affected by drought may qualify for capital gains tax relief. The relief applies to taxpayers who were forced by drought conditions to sell certain livestock held for draft, dairy or breeding purposes. Generally, livestock sold due to drought must be replaced within a four-year replacement period. Under Notice 2022-43, the IRS is […]

Work Opportunity Tax Credit provides help to employers

In today’s tough job market and economy, the Work Opportunity Tax Credit (WOTC) may help employers. Many business owners are hiring and should be aware that the WOTC is available to employers that hire workers from targeted groups who face significant barriers to employment. The credit is worth as much as $2,400 for each eligible […]

Alaska relief

It’s been a busy year for natural disasters, and the IRS has once again announced regional tax relief. This time, it’s for taxpayers in Alaska affected by storms and flooding that began on Sept. 15, 2022. Individuals and businesses in the affected areas have until Feb. 15, 2023, to submit payments for quarterly estimated taxes […]

Fraud penalty

If the IRS finds a taxpayer has committed fraud, the penalty is up to 75% of the unreported tax. In one case, a taxpayer was a managing member and employee of an engineering business. He didn’t report wage income he received from the company. The IRS used the “bank deposits method” to compare his bank […]

Year-end tax planning ideas for individuals

Now that fall is officially here, it’s a good time to start taking steps that may lower your tax bill for this year and next. One of the first planning steps is to ascertain whether you’ll take the standard deduction or itemize deductions for 2022. Many taxpayers won’t itemize because of the high 2022 standard […]

Revised per diem rates

The IRS has announced special 2022-2023 per diem rates that went into effect Oct. 1, 2022. Employees may use the rates to substantiate expenses for lodging, meals and incidental expenses when traveling away from home for business. To account for cost-of-living differences in the U.S., the daily rates are higher for localities that the IRS […]

Guidance issued on R&D credit for contractors

The IRS recently issued guidance regarding what research activities conducted by a contractor are “unfunded activities” eligible for the research and development (R&D) tax credit. Section 41 research expenses above a certain base amount qualify for the credit. They can be incurred for in-house or contracted research. Research performed for a client under a contract […]

How auditors use Benford’s Law to assess transactions

An interesting tool called Benford’s Law can be effective in detecting fraud. But it also can be used during external auditing procedures to test journal entries for unusual numeric patterns. Here’s what you should know about this statistical technique, including its potential limitations. Random data sets According to Benford’s Law, in sets of random data, […]