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 […]

Scam Alert

With tax season well underway, the IRS warns taxpayers to remain on guard when it comes to security. Be especially mindful, says the IRS, of scams involving unemployment benefits. Many states have reported a surge in fraudulent unemployment claims filed using stolen identities. Unemployment benefits are taxable income and are reported to recipients on Form […]

Are you ready for the new disclosure requirements for government assistance?

Starting in fiscal year 2022, all entities — except nonprofit organizations in the scope of Topic 958, Not-for-Profit Entities, and employee benefit plans — must provide detailed disclosures about government assistance. Here are the details of the new rules. Defining government assistance The term “government assistance” may refer to perks and other incentives policymakers provide to […]

Waiting for a Refund?

Are you wondering how long you’ll have to wait for a federal tax return? Assuming you e-filed, your tax situation is relatively uncomplicated and your return’s accurate, the IRS reports that your refund will likely arrive in less than 21 calendar days. As of Feb. 18, the IRS had issued more than 22 million refunds […]

The tax implications of owning a corporate aircraft

If your business is successful and you do a lot of business travel, you may have considered buying a corporate aircraft. Of course, there are tax and non-tax implications for aircraft ownership. Let’s look at the basic tax rules. Business travel only In most cases, if your company buys a plane used only for business, […]

Funny-sounding names for serious estate planning tools

Providing a company car? Here’s how taxes are handled

The use of a company vehicle is a valuable fringe benefit for owners and employees of small businesses. This perk results in tax deductions for the employer as well as tax breaks for the owners and employees using the cars. (And of course, they get the nontax benefit of getting a company car.) Plus, current […]

IRS Challenges

Challenges faced by the IRS last year continue, said the Government Accountability Office (GAO). Recently, a GAO Director, Jessica Lucas-Judy, listed some of the issues in a testimony before the U.S. Senate Finance Committee. Issues include soaring telephone demand, rising correspondence inventory, limited online information, and a decline in in-person services. “The outcome,” said Lucas-Judy, […]

TAP seeking new members

Here’s your chance to tell the IRS what you really think. The Taxpayer Advocacy Panel (TAP) is seeking new members now through April 8. Members serve a three-year term and represent all 50 states, as well as Washington D.C. and Puerto Rico. They provide an ordinary taxpayer perspective to the IRS and recommend ways to […]