Living abroad? Your tax due date is June 17

Taxpayers living and working outside the U.S. have a June 17, 2024, deadline to file their 2023 federal income tax returns. The deadline applies to U.S. citizens and resident aliens abroad, including those with dual citizenship. It doesn’t apply to taxpayers who live or have a business in Israel, Gaza or the West Bank, and […]

IRS ERTC compliance efforts ramp up

IRS compliance efforts around erroneous Employee Retention Tax Credit (ERTC) claims topped more than $1 billion in six months. Another $3 billion in claims is being reviewed. The revenue is the result of three initiatives: 1) A Voluntary Disclosure Program, which ended on March 22 and allowed taxpayers to pay back money incorrectly received, 2) […]

Beware of a stealth tax on Social Security benefits

Some people mistakenly believe that Social Security benefits are always free from federal income tax. Unfortunately, that’s often not the case. In fact, depending on how much overall income you have, up to 85% of your benefits could be hit with federal income tax. While the truth about the federal income tax bite on Social […]

Time to consider an extension?

With the tax filing season winding down in roughly three weeks, the IRS has a reminder for some taxpayers. Those who are unable to file by the due date, April 15, can avoid failure-to-file penalties by requesting an automatic extension to Oct. 15. The request must be made no later than April 15, by filing […]

Is a tax increase coming?

Will federal taxes rise for taxpayers after next year? That’s a common question, as some provisions of the Tax Cuts and Jobs Act (TCJA) are set to expire after 2025. U.S. Treasury Secretary Janet Yellen said recently that President Biden supports a budget proposal extending certain TCJA provisions, and that he opposes raising the taxes […]

Maximize the QBI deduction before it’s gone

The qualified business income (QBI) deduction is available to eligible businesses through 2025. After that, it’s scheduled to disappear. So if you’re eligible, you want to make the most of the deduction while it’s still on the books because it can potentially be a big tax saver. Deduction basics The QBI deduction is written off […]

Discussion on potential renters’ tax credit

A recent American Bar Association (ABA) conference discussed a potential tenant-based renters’ tax credit (RTC), which could be claimed on federal income tax returns if it was enacted into law. It was suggested that an RTC could be refundable, similar to the Child Tax Credit, to benefit low-income individuals. Another proposal was to make an […]

Cash payment reporting is now a required electronic filing

The IRS is reminding businesses that if they intend to file 10 or more information returns reporting cash payments over $10,000 in a single transaction, they must file Form 8300 electronically, instead of filing the forms on paper. To e-file, your business must first set up an account with the Financial Crimes Enforcement Network’s BSA […]

Spotlight on auditor independence

Auditor independence is the cornerstone of the accounting profession. Auditors’ commitment to follow the standards set forth by the American Institute of Certified Public Accountants (AICPA), the Securities and Exchange Commission (SEC), and the International Auditing and Assurance Standards Board (IAASB) ensures stakeholders can trust that audited financial statements present an accurate picture of the […]

IRS Commissioner comments on increased audits of high income taxpayers

In recent comments, IRS Commissioner Danny Werfel explained that the agency doesn’t make sweeping assumptions that any taxpayer making more than $400,000 is automatically assumed to be a tax cheat and should expect an audit. Instead, Werfel stressed that the IRS is using funding provided by the Inflation Reduction Act to better leverage data to […]