With the government shutdown now a little over a week old, the IRS announced it has begun furloughing nearly half of its staff. According to the tax agency’s updated shutdown contingency plan, around 34,400 of its 74,300 employees have been furloughed. The plan notes that the majority of employees being retained work in taxpayer services, […]

Many Americans donate to charities they wish to support. If donors itemize deductions, they may also enjoy a tax break. But if a nonprofit violates tax laws or regulations, the IRS may revoke its tax-exempt status and remove it from the list of charities qualified to receive tax-deductible contributions. Suppose you’ve donated to a qualified […]

For federal tax purposes, proceeds from legal settlements are generally included in taxable income unless specifically excluded by law, such as those for personal physical injuries or sickness. One taxpayer received $135,000 from her former employer to resolve claims of sexual harassment and discrimination. She didn’t report it on her tax return. After receiving an […]

Members of the U.S. Senate Finance Committee recently met to discuss ongoing issues with the federal tax treatment of digital assets. Both Republicans and Democrats on the committee essentially agreed that the tax rules are confusing and could use improvement. One of the hearing’s witnesses asserted that the “tax code still treats digital assets as […]

The IRS’s contingency plan called for it to remain open and fully staffed (funded by Inflation Reduction Act money) for at least the first five business days of the current federal government shutdown. However, the plan updated on Sept. 29, 2025 (https://bit.ly/4o6alcc), didn’t specify what would happen after that. According to Bloomberg, if the government […]

Taxpayers involved in a dispute with the IRS may want to consider using one of the IRS’s alternative dispute resolution (ADR) mediation programs. These programs can help taxpayers efficiently resolve tax issues with the IRS. Taxpayers for whom mediation can be a good option include those who don’t have many disputed issues or who’re seeking […]

The cutoff date for purchasing or leasing a new electric vehicle (EV) to take advantage of the $7,500 EV tax credit was Sept. 30, 2025. But General Motors (GM) and Ford have found a workaround to extend the credit into the fourth quarter. In a nutshell, GM and Ford had their financing arms make down […]