How IRS auditors learn about your business industry

Ever wonder how IRS examiners know about different industries so they can audit various businesses? They generally do research about specific industries and issues on tax returns by using IRS Audit Techniques Guides (ATGs). A little-known fact is that these guides are available to the public on the IRS website. In other words, your business […]

Gift Tax exclusions limits

This holiday season, you may want to make cash gifts to loved ones. The annual gift tax exclusion for 2023 is $17,000 ($34,000 for married couples). You can give up to that amount to an unlimited number of people by Dec. 31, and the gifts will be exempt from gift tax, the generation-skipping tax and […]

IRS to focus audits on Affluent taxpayers

In recent months, the IRS has repeatedly indicated that it intends to focus audit activity on affluent taxpayers with more than $400,000 in annual income, large partnerships and big corporations. Taxpayers in these groups should, therefore, be prepared for extra scrutiny. You may want to review tax filings from the past three years to ensure […]

4 ways to prepare for next year’s audit

Every fall, CPAs are busy preparing for audit season, which generally runs from January to April each year. This includes meeting with clients, assigning staff and scheduling fieldwork. Likewise, organizations with calendar year ends should prepare for audit fieldwork. A little prep work this fall can help facilitate the process, minimize adjustments and surprises, and […]

IRS warns of scheme

The IRS is warning taxpayers about an art donation scheme. Fraudsters are encouraging high-income taxpayers to purchase artwork at “discounted” prices and then wait a year before donating the pieces at inflated fair market values, which are typically significantly higher than the purchase prices. These are the amounts that taxpayers will use for deductible charitable […]

Federal Deficit Grew to $2 Trillion in FY 2023

Federal Deficit Grew to $2 Trillion in FY 2023 https://bit.ly/3QgxYAx

How to prevent and detect tax identity theft

IRS is focusing on improving overall experience

One area the IRS is focusing its efforts on is improving the overall taxpayer experience. To that end, the deputy chief of the IRS’s Taxpayer Experience Office, Courtney Kay-Decker, recently published an article outlining efforts “to make improvements and make progress toward the IRS goal of delivering exceptional service every day.” According to Kay-Decker, funding […]

New guidance issued on home contractor tax credit

New IRS guidance is available for a tax credit for eligible home contractors of up to $5,000 per home. Eligible contractors must construct or substantially reconstruct and rehab qualified new energy efficient homes. The credit amount varies by the type of home, the home’s energy efficiency and more. The home must be in the United […]

House Ways and Means asks for clarification on IRS’s ERC pause

Just weeks ago, the IRS halted acceptance of new claims for the Employee Retention Credit amidst fraud concerns. IRS Commissioner Danny Werfel said that a flood of ineligible claims promoted by fraudsters had led to a pause in accepting new claims and added to the processing time for claims filed. Members of the U.S. House […]