Beneficial Ownership Interest reporting questioned

Officials from the Financial Crimes Enforcement Network (FinCEN) recently defended the rollout of Beneficial Ownership Information (BOI) reporting before a U.S. House committee. To comply with an initiative intended to help prevent and detect money laundering, as many as 32 million companies are expected to file BOI reports. However, some House members and the American […]

Get ready for the 2023 gift tax return deadline

Did you make large gifts to your children, grandchildren or others last year? If so, it’s important to determine if you’re required to file a 2023 gift tax return. In some cases, it might be beneficial to file one — even if it’s not required. Who must file? The annual gift tax exclusion has increased […]

SALT change rejected

The U.S. House of Representatives recently rejected a bill that would have increased the state and local tax (SALT) deduction for certain taxpayers. Specifically, it would have increased the SALT deduction from $10,000 to $20,000 for married couples filing jointly with incomes up to $500,000. However, the SALT Marriage Penalty Elimination Act never reached the […]

Deadline Looms

An important tax deadline is coming up on March 1 for certain farmers and fishers. To avoid estimated tax penalties, they must file their 2023 federal tax returns and pay all taxes due by March 1 if they didn’t make estimated tax payments by Jan. 16, 2024. According to the IRS, a farmer or fisher […]

What’s the best accounting method route for business tax purposes?

Businesses basically have two accounting methods to figure their taxable income: cash and accrual. Many businesses have a choice of which method to use for tax purposes. The cash method often provides significant tax benefits for eligible businesses, though some may be better off using the accrual method. Thus, it may be prudent for your […]

Do I qualify for a cash award?

Taxpayers who give the IRS Whistleblower Office (WBO) information about unpaid taxes may qualify for cash awards. To be eligible, tips must be credible and specific, relate to tax underpayments or violations of tax laws and be used to collect proceeds. One individual submitted a claim that targeted taxpayers based on 36 broad categories of […]

What should I do if I receive a refund, but it’s wrong?

Mistakes happen. What if you receive a refund from the IRS that you’re not entitled to? Or what if you receive one that’s more than you’re entitled to? How you must handle it depends on details. A paper check refund should be voided and returned within 21 days of receipt to the address in the […]

Auditing revenue recognition

The top line of an income statement for a for-profit business is revenue (or sales). Reporting this line item correctly is critical to producing accurate financial statements. Under U.S. Generally Accepted Accounting Principles (GAAP), revenue is recognized when it’s earned. With accrual-basis accounting, that typically happens when goods or services are delivered to the customer, […]

What’s happening in the courts?

In one recent federal court case, a nonresident alien taxpayer claimed deductions from taxable income for multiple personal exemptions. The IRS denied them. The taxpayer argued in court that the Tax Cuts and Jobs Act had made everyone other than nonresident aliens ineligible for several personal exemptions. Not surprisingly, the court disagreed with this interpretation […]

Introduction to Tax Forms for Gig Economy Workers

Are you one of millions of Americans who participate in the gig economy? If so, the IRS considers you an independent contractor. Essentially, you’re a solo business owner, which ushers in a unique set of tax rules and obligations. A recent post in the National Tax Advocate blog examines some of the essential tax issues […]