Couple claims they have too much proof to present in court

Business owners can generally deduct ordinary and necessary business expenses if they have proof. But one married couple that owned six LLCs claimed they had too much proof to present in court. After they failed to file tax returns for several years, the IRS created substitute returns. In U.S. Tax Court, the taxpayers relied mostly […]

No award given in recent whistleblower case

Taxpayers who give the IRS Whistleblower Office (WBO) credible, specific tips about unpaid taxes may qualify for cash awards. Several conditions must be met, including: The IRS must take action based on a tip provided. Also, proceeds must be derived by the WBO based on the action taken. One tipster alleged that a tax-exempt entertainment […]

There’s still time to reduce your 2024 tax bill with these strategies

There’s still time to reduce your 2024 tax bill with these strategies – CNBC https://bit.ly/3AihVgw

Obtaining documents are a disaster

It’s common for individual and business taxpayers to lose financial records during a natural disaster. Unfortunately, you usually need such records to document losses for your insurance company and to qualify for federal assistance. But if you visit the IRS’s website (https://bit.ly/4dQ3XA7), you can view or obtain copies of your historical tax returns, wage and […]

More Disaster relief announced

Due to wildfire destruction, the IRS recently announced tax relief for certain parts of Arizona and Washington state. And, of course, the agency has issued several tax relief notices in recent days to assist victims of Hurricanes Helene and Milton in seven southeastern states. In general, many 2024 filing and payment deadlines have been postponed […]

How will the 2025 inflation adjustment numbers affect your year-end tax planning?

The IRS has issued its 2025 inflation adjustment numbers for more than 60 tax provisions in Revenue Procedure 2024-40. Inflation has moderated somewhat this year over last, so many amounts will increase over 2024 but not as much as in the previous year. Take these 2025 numbers into account as you implement 2024 year-end tax planning […]

TIGTA issues report on IRS spending

The Treasury Inspector General for Tax Administration recently issued a report on IRS spending under the Inflation Reduction Act (IRA). It found the IRS has spent nearly $6.9 billion of its approximately $57.8 billion in IRA funding through the third quarter of fiscal year 2024. Notably, the IRS has used supplemental IRA funding to fund […]

Will the R+D Credit be fixed?

For more than 70 years, the U.S. tax code allowed companies to currently deduct certain research and development (R&D) expenses. This benefitted manufacturers and businesses in other industries. However, under the Tax Cuts and Jobs Act, since 2022, companies have had to amortize R&D costs over a period of years. Specifically, R&D expenses covered under […]

Can homeowners deduct seller-paid points as the real estate market improves?

The recent drop in interest rates has created a buzz in the real estate market. Potential homebuyers may now have an opportunity to attain their dreams of purchasing property. “The recent development of lower mortgage rates coupled with increasing inventory is a powerful combination that will provide the environment for sales to move higher in […]

What is third-party representation?

If the IRS contacts you about a specific tax matter, you can authorize a third party to handle it on your behalf. It could be a relative, friend or a tax pro at our firm, as long as you grant formal permission. You can do this by assigning your power of attorney to a person […]