You can appeal an OIC rejection

Taxpayers who can’t pay the full tax they owe may request an offer in compromise (OIC) from the IRS. That’s a way to settle your tax debt for less than is owed. The IRS states that it generally approves an OIC from an eligible taxpayer if it’s reasonable. But suppose your OIC is rejected. If […]

Seniors are more likely to be harmed by theft loss

A report recently published by the U.S. Senate Special Committee on Aging argues that those most at risk of being victimized by fraud, seniors, are also likely to be harmed by provisions contained in the Tax Cuts and Jobs Act (TCJA). The TCJA modified the traditional casualty and theft loss deduction so that only losses […]

Don’t have a tax-favored retirement plan? Set one up now

If your business doesn’t already have a retirement plan, it might be a good time to take the plunge. If you’re self-employed and set up a SEP-IRA, you can contribute up to 20% of self-employment earnings, with a maximum contribution of $69,000 for 2024 (up from $66,000 for 2023). If you’re employed by your own […]

Don’t have a tax-favored retirement plan? Set one up now

If your business doesn’t already have a retirement plan, it might be a good time to take the plunge. Current retirement plan rules allow for significant tax-deductible contributions. For example, if you’re self-employed and set up a SEP-IRA, you can contribute up to 20% of your self-employment earnings, with a maximum contribution of $69,000 for […]

Owe Tax?

If you owe tax and don’t pay the IRS on time and in full, you could face a penalty on the unpaid tax. Penalties may also be assessed if you fail to file an accurate and on-time income tax return or information return, or if you make an erroneous claim for a credit or refund. […]

ERTC claims showing benefits of going digital

During recent testimony before the Senate Finance Committee, IRS Commissioner Danny Werfel used the challenges of processing Employe Retention Tax Credit (ERTC) claims as an example of the benefits of increasing the digital processing and filing of tax returns. Werfel told the committee that the IRS’s progress “is hampered by the fact that amended returns […]

6 tips for lowering energy costs to boost profits

Earth Day reminded us that this is a good time to evaluate what your business can do to protect the planet’s natural resources for the next generation. “Green” initiatives can demonstrate your company’s commitment to responsible business practices — as well as lower your monthly bills. For many small and midsized businesses, utilities and fuel […]

What has the IRS spent IRA funding on?

The Treasury Inspector General for Tax Administration (TIGTA) issued a report updating how the IRS has spent funding provided by the Inflation Reduction Act (IRA). Of the approximate $78 billion, the agency expended nearly $4.4 billion (5.6%) through Dec. 31, 2023. Breaking the numbers down further, of the $4.4 billion, the IRS spent nearly $2 […]

Did you receive a letter from the IRS?

Receiving a letter from the IRS may make you go weak in the knees. Don’t panic, but do read the letter, the tax agency says. The IRS may simply have a question about your return or inform you of a change to your account or the letter may request payment. Don’t ignore it. Instead, read […]

When must you obtain an appraisal for a charitable donation you want to deduct?

Test your Knowledge: When must you obtain an appraisal for a charitable donation you want to deduct?