IRS issues proposed regulations on the Advanced Manufacturing Production Credit

The Inflation Reduction Act introduced the IRC Section 45X Advanced Manufacturing Production Credit in 2022. The credit is available to manufacturers that produce clean energy components in the United States, including solar and wind energy components, inverters, qualifying battery components, and applicable critical minerals. The IRS has issued proposed regulations that, among other things, provide […]

CAMT guidance released

The corporate alternative minimum tax (CAMT) was introduced in 2022 by the Inflation Reduction Act. The CAMT imposes a 15% minimum tax on the adjusted financial statement income (AFSI) of large corporations for taxable years beginning after Dec. 31, 2022. It generally applies to large corporations with average annual financial statement income exceeding $1 billion. […]

The IRS is updating its organizational structure

The IRS is updating its organizational chart to align with its transformation goals. Changes are being made in response to the Taxpayer First Act Report to Congress in January 2021 and the more recent IRS Strategic Operating Plan (released in April 2023). The new management structure will include a single deputy commissioner and four chief […]

Advice | IRS is waiving $1B in penalties. Beware of tax debt relief companies

Advice | IRS is waiving $1B in penalties. Beware of tax debt relief companies. – The Washington Post https://bit.ly/48suamd

What is a fraud penalty?

To err is human. But if you intentionally underpay taxes owed, the IRS may slap you with a fraud penalty. Such was the case in two recent U.S. Tax Court decisions against taxpayers. In one case (TC Memo 2023-149), the taxpayer willfully concealed partnership income to such an extent that he hired people to create […]

IRS launching compliance program for ERTC recipients

The IRS has announced that it’s planning to launch a compliance program for taxpayers who’ve received Employee Retention Tax Credit (ERTC) payments in error. The program is expected to roll out by year end. The problem of fraudulent ERTC claims has been well documented. Indeed, the IRS issued a moratorium (currently through year end) on […]

How Recent Reforms to Retirement Saving Will Impact Taxpayers in 2024 and Beyond

How Recent Reforms to Retirement Saving Will Impact Taxpayers in 2024 and Beyond https://bit.ly/3vjjsjq

IRS issues 2024 mileage rates

The IRS has issued the 2024 optional cents-per-mile rates used to calculate the tax-deductible costs of operating a vehicle. Effective Jan. 1, 2024, the standard mileage rate for the business use of a car (including vans, pickups, and panel trucks) is 67 cents per mile. (This is up from 65.5 cents per mile for 2023.) […]

Cash payment reporting – When do I need to report?

Businesses must report transactions of $10,000 in cash or cash equivalents to the IRS using Form 8300. The purpose is to combat tax evasion, money laundering and more. A business that deliberately arranges transactions to bypass this threshold may be charged with illegally avoiding bank reporting requirements, also called “structuring.” In one case, a businesswoman […]

The “nanny tax” must be paid for nannies and other household workers

You may have heard of the “nanny tax.” But if you don’t employ a nanny, you may think it doesn’t apply to you. Check again. Hiring a housekeeper, gardener or other household employee (who isn’t an independent contractor) may make you liable for federal income and other taxes. You may also have state tax obligations. […]