IRS issues update on Operating Plan

In April 2023, the IRS published its Strategic Operating Plan that set initial short- and long-term goals for what it hoped to accomplish with the funding provided by the Inflation Reduction Act. A little over a year later, the tax agency has issued its first annual progress report. In the report, the IRS touted its […]

TIGTA identifies fraud scheme

A recent announcement identified a scheme that could’ve cost taxpayers $3.5 billion in fraudulent payments. An investigation by the Treasury Inspector General for Tax Administration (TIGTA) found that individuals had obtained Employer ID Numbers (EINs) for businesses that may not be active. The EINs were used to file tax returns claiming Employee Retention Tax Credits […]

Watch out for “income in respect of a decedent” issues when receiving an inheritance

Most people are genuinely appreciative of inheritances, and who wouldn’t enjoy some unexpected money? But in some cases, it may turn out to be too good to be true. While most inherited property is tax-free to the recipient, this isn’t always the case with property that’s considered income in respect of a decedent (IRD). If […]

Getting Married? Don’t forget to change your withholding

Wedding season is here. That’s generally a happy time involving gifts, cake and endless details. The last thing on your mind may be taxes but the IRS wants to remind newlyweds of a few important steps. Next year, you’ll be filing your first tax return as a married person and that could affect the amount […]

2020 Deadline tomorrow

May 17 is an important upcoming deadline for the 1 million people who didn’t file their 2020 federal tax returns and are due a refund. Indeed, that’s the filing deadline to claim an estimated more than $1 billion in tax refunds that the IRS says remain available. There’s no penalty for failing to file if […]

When businesses may want to take a contrary approach with income and deductions

Businesses usually want to delay recognition of taxable income into future years and accelerate deductions into the current year. But when is it wise to do the opposite? And why would you want to? One reason might be tax law changes that raise tax rates. The Biden administration has proposed raising the corporate federal income […]

IRS warns on another scam

The IRS is warning about a tax scam that takes advantage of a U.S. tax treaty with Malta. Bad actors encourage U.S. taxpayers to make unlimited noncash contributions to Maltese individual retirement arrangements. Promoters may refer to them as “pension funds.” Participants usually contribute highly appreciated assets, which are then sold for cash. They’re told […]

GAO issues audit of IRS

The Government Accountability Office (GAO) has issued an audit report (https://bit.ly/4drmu79 ) for the IRS’s fiscal year 2023 financial statements. Although the GAO generally believes the agency’s internal controls are effective in preventing misstatements, it cautions about ongoing “significant deficiencies” when it comes to unpaid assessments and information system controls. It also identifies three new […]

How to communicate accounting information to laypeople

Accurate, timely financial information is key to making good decisions for executives, board members, investors and other stakeholders. But not everyone who reads your financial statements will really understand the numbers they receive and what they mean to your organization. Here are some ways to present your financial results in a reader friendly manner. Consider […]

IRS reminds Taxpayers to review their disaster emergency plan

The IRS is reminding taxpayers that with peak periods for natural disasters approaching, this is an ideal time to review and protect important tax and financial information as part of a disaster emergency plan. Indeed, May is National Wildfire Awareness Month, and the week of May 5 begins National Hurricane Preparedness Week. Start by keeping […]