What is jointly and severally liable?

Spouses who file a joint federal tax return are both generally liable for the tax owed. But joint filers may be eligible for “innocent spouse” relief that shields them from liability. One taxpayer argued that if she paid the taxes owed, she’d suffer economic hardship. Her annual income, she said, was far below the poverty […]

Address Change?

Did your address change in 2023? If so, it’s important to notify the IRS of your correct address for your home or business. You can easily inform the IRS of changes to your home address by filing Form 8822 or Form 8822-B to change your business address. You can also make the change by calling […]

Reporting Cash transactions

A reminder for businesses: Use IRS Form 8300 to report cash transactions of $10,000 or more within 15 days of a transaction. If you file electronically, forms are delivered to the Financial Crimes Enforcement Network. Paper forms are submitted to the IRS. You also generally should provide written statements to parties whose names you’ve reported […]

Captive Insurance Company loses in Tax Court

When businesses owned by a married couple supplemented traditional insurance with “microcaptive” policies from companies the husband controlled, the IRS called foul. The tax agency said these policies were used to claim deductions and avoid paying tax. The Tax Court agreed. It ruled, among other things, that the taxpayers failed to show their captive policies […]

Requirements for Clean Vehicle Tax Credits

For an electric vehicle to qualify for the clean vehicle tax credit (IRC Sec. 30D), it must meet certain requirements. The maximum credit is $7,500. A vehicle that meets the requirements for critical materials may qualify for a $3,750 credit. A vehicle that meets requirements for battery components may qualify for a $3,750 credit. At […]

The SALT Marriage Penalty Elimination Act

Coming on the heels of its recent passage of the proposed Tax Relief for American Families and Workers Act, the U.S. House of Representatives may soon vote on another tax-related bill, the SALT Marriage Penalty Elimination Act. It addresses the state and local tax (SALT) deduction, which was capped at $10,000 by the Tax Cuts […]

Deadline is tomorrow

The IRS is reminding certain disaster victims of a fast-approaching deadline on Feb.15, 2024. Those affected by federally declared disasters that occurred in 2023 between Aug. 8 and Oct. 9 were granted extra time to file their 2022 tax returns, but not extra time to pay taxes due. Among those disasters were Hurricane Lee, Hurricane […]

The Tax Relief for American Families and Workers Act

On Jan. 31, the U.S. House of Representatives passed a bipartisan tax package. The Tax Relief for American Families and Workers Act of 2024 contains enhancements to the Child Tax Credit (CTC) and would restore some tax breaks for businesses. Specifically, it would expand CTC eligibility for some low-income families. It would also bring back […]

A reminder from the IRS

It’s easy to overlook smaller amounts of income when it’s time to prepare your tax return. Taxpayers must generally include all income, not just the amount they find on an employer-generated W-2 form. For example, did you make goods and sell them on an online marketplace or at a crafts fair? Did you provide and […]

If you gave to charity in 2023, check to see that you have substantiation

Did you donate to charity last year? Acknowledgment letters from the charities you gave to may have already shown up in your mailbox. But if you don’t receive such a letter, can you still claim a deduction for the gift on your 2023 income tax return? It depends. What the law requires To prove a […]