Tax policy on emissions

How are carbon-dioxide emissions affected by tax or allowance prices on them? A recent Congressional Budget Office (CBO) paper examines this question. It scrutinizes three groups: the electrical power industry, the transportation sector and a composite residential, commercial and industrial group. In the electrical power industry, “price sensitivities of energy-related emissions over the first 10 […]

Was that a Yes or a No?

It’s a simple “yes” or “no” question, but you must answer it on your Form 1040 or Form 1040-SR: At any time during 2021, did you receive, sell, exchange or otherwise dispose of any financial interest in any virtual currency? According to the IRS, some examples of a transaction involving virtual currency are the receipt […]

Keeping meticulous records is the key to tax deductions and painless IRS audits

If you operate a business, or you’re starting a new one, you know you need to keep records of your income and expenses. Specifically, you should carefully record your expenses in order to claim all of the tax deductions to which you’re entitled. And you want to make sure you can defend the amounts reported […]

IRS creates new Office

The IRS has established its first-ever Taxpayer Experience Office. The new office will focus on all aspects of taxpayers’ transactions with the IRS. Specifically, in the near-term, the office will seek to expand customer callback, provide additional payment options, secure two-way messaging and offer more services for multilingual customers. The office will work in conjunction […]

Energy Credits Proposed

Among the many consequences of Russia’s invasion of Ukraine are higher energy prices and fears about oil and gas shortages. But recently, Senate Finance Committee Chairman, Ron Wyden (D-OR) argued that Congress can kill two birds with one stone by passing clean energy tax incentives. Tax breaks could help reduce the country’s dependence on foreign […]

The election to apply the research tax credit against payroll taxes

The credit for increasing research activities, often referred to as the research and development (R&D) credit, is a valuable tax break available to eligible businesses. Claiming the credit involves complex calculations, which we can take care of for you. But in addition to the credit itself, be aware that the credit also has two features […]

How’s your tax withholding?

This tax season, some taxpayers will be shocked to learn that they owe money to the IRS, perhaps because their employer didn’t withhold enough from their wages. This can also happen when an employee has more than one job or income that fluctuates throughout the year. But it’s your responsibility to ensure withholding is adequate. […]

Gig Income

If you’ve earned income from the gig economy, the IRS is reminding you that those wages are taxable and must be reported. The gig economy is when people earn income providing on-demand work, services or goods. Often, the gig is acquired through a digital platform, such as a smart phone app. Taxpayers must report income […]

There still may be time to cut your tax bill with an IRA

If you’re getting ready to file your 2021 tax return, and your tax bill is more than you’d like, there might still be a way to lower it. If you’re eligible, you can make a deductible contribution to a traditional IRA right up until the April 18, 2022, filing date and benefit from the tax […]

KleptoCapture

The U.S. Department of Justice announced that it’s creating a task force, KleptoCapture, aimed at crippling the finances of rich Russians to pressure their country to end its invasion of Ukraine. Meanwhile, Senate Finance Committee Chairman Ron Wyden (D-OR) is urging Congress to further fund the IRS Criminal Investigation unit. This arm of the IRS […]