It’s easy to get tripped up by the IRS’s passive activity loss rules

No plans to extend BOI reporting deadline

Recently, several members of the U.S. House Financial Services Committee claimed that many small business owners weren’t aware of the Beneficial Ownership Information (BOI) reporting deadline. They are, according to these members, vulnerable to noncompliance penalties. However, U.S. Treasury Secretary Janet Yellen responded that there are no plans to extend the regulation’s compliance deadline. This means […]

Fact sheet released on clean fuel production credit

The IRS has released a new fact sheet (https://bit.ly/3XUv7BN ) to help businesses that produce clean transportation fuel apply for registration for the clean fuel production credit. The fact sheet clarifies such issues as which entities must apply for registration and what actions disregarded entities should take. This credit (under Code Sec. 45Z) was made […]

SECURE 2.0: Which provisions went into effect in 2024?

The Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act was signed into law in December 2022, bringing more than 90 changes to retirement plan and tax laws. Many of its provisions are little known and were written to roll out over several years rather than immediately taking effect. Here are several important changes that […]

Bill Introduced to extend and enhance Paid Family and Medical Leave Credit

In the U.S. House of Representatives, a bill was recently introduced that would extend and enhance the Paid Family and Medical Leave Credit (under IRC Section 45S). The bill proposes, among other things, to expand eligibility by reducing the minimum employment period for qualifying employees from one year to six months. The bill has broad […]

IRS reports collections from High-Income taxpayers

Through an expanded enforcement initiative launched last year, the IRS reports it has collected more than $1 billion in past-due taxes from “high-income, high-wealth” individuals. As part of larger efforts taking place, the tax agency stepped up activity on 1,600 individuals whose incomes were more than $1 million per year and who each owed more […]

State and Local Sales Tax Rates, Midyear 2024

State and Local Sales Tax Rates, Midyear 2024 https://bit.ly/4fbCuL4

Don’t ignore notices from the IRS

Ignoring the IRS doesn’t make it go away. While the tax agency is generally willing to work with taxpayers who dispute their tax bills or need more time to pay, cooperation is key. In one case, the owner of a boat and RV storage facility owed unpaid federal income and self-employment taxes, as well as […]

Another scam warning from the IRS

The IRS continues to warn the public about tax-related scams and myths making the rounds on social media. The scams involve the Fuel Tax Credit, a COVID-19-related employer credit for employees taking sick and family leave during the pandemic, household employment taxes and overstated withholding. These scams are aimed at helping taxpayers use false and […]

Social Security tax update: How high can it go?

Employees, self-employed individuals and employers all pay Social Security tax, and the amounts can get bigger every year. And yet, many people don’t fully understand the Social Security tax they pay. If you’re an employee If you’re an employee, your wages are hit with the 12.4% Social Security tax up to the annual wage ceiling. […]