IRS found to be at-risk for exploitation

Information security at the IRS is an area of weakness, according to an audit by the Treasury Inspector General for Tax Administration (TIGTA). All federal agencies must have a corrective plan of action, or Plan of Action and Milestones (POA&M), TIGTA explained in a recent report. To test the effectiveness of the tax agency’s POA&Ms, […]

The IRS has updated table used for health insurance credit

The IRS has updated the table used to determine an individual’s health insurance premium tax credit for federally subsidized health plans. The benchmark to calculate the affordability of employer-sponsored health care will drop to 8.39% of household income for 2024. A plan is deemed affordable if the employee’s required contribution doesn’t exceed the annual percentage […]

Selling your home for a big profit? Here are the tax rules

Many homeowners across the country have seen their home values increase in recent years. According to the National Association of Realtors, the median price of existing homes sold in July of 2023 rose 1.9% over July of 2022 after a couple years of much higher increases. The median home price was $467,500 in the Northeast, […]

Are you subject to the Foreign Tax Compliance Act?

Are you subject to the Foreign Account Tax Compliance Act (FATCA)? You may be if you own foreign financial assets valued at more than $50,000 aggregate. Certain taxpayers must report these holdings annually to the IRS, using Form 8938. But the reporting threshold is generally higher for married taxpayers who file jointly and people living […]

Tax evasion leads to prision

A man who owned several companies was sentenced in 2022 to 30 months in prison for tax evasion and employment tax crimes. According to the U.S. Dept. of Justice, he withheld more than $1 million in taxes from his employees’ wages but didn’t pay required taxes to the IRS. After serving about 12 months of […]

Divorcing business owners should pay attention to the tax consequences

If you’re getting a divorce, you know the process is generally filled with stress. But if you’re a business owner, tax issues can complicate matters even more. Your business ownership interest is one of your biggest personal assets and in many cases, your marital property will include all or part of it. Transferring property tax-free […]

Tax relief for Hawaii wildfires announced

Eligible victims of the wildfires in Hawaii, including on the island of Maui, now have additional time for certain tax-related tasks. Following a disaster declaration issued by the Federal Emergency Management Agency, the IRS granted tax relief to those affected by wildfires that began on Aug. 8. These victims now have until Feb. 15, 2024, […]

IRS issues final regulations and guidance for COVID credits

The IRS recently issued final regulations and guidance for COVID-19-related employment tax credits. Specifically, the regs provide that businesses that erroneously received additional refunds in excess of what they were entitled to may be assessed underpayment penalties. This involves the Employee Retention Tax Credit, the Qualified Paid Sick Leave Credit and the Qualified Paid Family […]

New report identifies high-risk areas in financial reporting

In July 2023, the Public Company Accounting Oversight Board (PCAOB) published a report that highlights common areas of audit deficiencies for public companies. Private companies face similar challenges when reporting their financial results. Internal accounting personnel and external auditors can use the PCAOB’s report to identify high-risk areas in financial reporting that may warrant additional […]

Child Care tax credit update

Child care tax credits could expand if a bipartisan bill passes. On July 17, U.S. House members Salud Carbajal (D-CA) and Lori Chavez-DeRemer (R-OR) introduced the Child Care Investment Act. “Skyrocketing costs have left affordable child care out of reach for too many families,” stated Chavez-DeRemer in a press release. If passed, the bill would […]