Where’s my refund?

Myths about federal tax refunds keep coming and the IRS is continuing to combat misinformation. One common myth is that if you get a refund this year, there’s no need to adjust your withholding for 2022. That may not be true if you want to avoid surprises next year. You can use the IRS Tax […]

Is a Settlement or Judgment Taxable?

Tax law excludes from “gross income” damages received for “personal physical injuries or physical sickness,” if certain conditions are met. The damages must be based on a wrongful act resulting in injury and they must be awarded for physical injuries or illness. There must be a “direct causal link” between the damages and the injury. […]

It’s almost that time of year again! If you’re not ready, file for an extension

The clock is ticking down to the April 18 tax filing deadline. Sometimes, it’s not possible to gather your tax information and file by the due date. If you need more time, you should file for an extension on Form 4868. An extension will give you until October 17 to file and allows you to […]

Securing a Strong Retirement Act passes House

The U.S. House of Representatives has passed a major bill that focuses on retirement saving. The Securing a Strong Retirement Act (SECURE 2.0) has many provisions that could affect retirees and people saving for the future. Among the provisions SECURE 2.0 covers: automatic enrollment in retirement plans; an increase in the beginning date of required […]

Proposal requires disclosure of foreign accounts holding crypto and digital assets

One of President Biden’s 2023 budget proposals would require that stakes in certain foreign financial accounts that hold cryptocurrencies and other digital assets be disclosed to the IRS. These enhanced reporting requirements are outlined in the U.S. Treasury Department’s “Green Book” of revenue estimates. They would apply to U.S. taxpayers who have more than $50,000 […]

Timing counts: Reporting subsequent events

Major events or transactions — such as a natural disaster, a cyberattack, a regulatory change or the loss of a large business contract — may happen after the reporting period ends but before financial statements are finalized. The decision of whether to report these so-called “subsequent events” is one of the gray areas in financial […]

Saving for Retirement Bill

Why aren’t more Americans saving enough for retirement? The Senate Health, Education, Labor and Pensions Committee is examining that question. The committee points to a General Accountability Office report that found some companies offered workers lump-sum buyouts without providing them with information needed to make good decisions. Another report said that nearly 40% of 401(k) […]

proposed Billionaire Minimum Income Tax

More details were released on March 28 about the proposed “Billionaire Minimum Income Tax.” This is the tax included in President Biden’s 2023 budget, but Congress would have to agree to any budget proposals before they could be enacted. By targeting the top 700 U.S. taxpayers, the White House said the tax would “ensure that […]

Ways to verify your identity with the IRS

Penalty Upheld

The U.S. Tax Court upheld trust fund recovery penalties imposed on a part-time bookkeeper for an urgent care center. He argued that as a part-time employee he wasn’t a “responsible person” for payroll taxes that weren’t paid over to the IRS. He claimed that the IRS settlement officer acted arbitrarily in assessing the penalty against […]