Need a payment plan? What’s your income?

IRS Form 433-A is used to obtain financial information to determine how a wage earner or self-employed person can pay an outstanding tax liability. Individuals are required to truthfully report income on this form. In one case, a doctor worked as a contractor and had no tax withheld and didn’t pay taxes or file tax […]

Credits can help reduce the cost of raising Children

Raising kids is costly. That’s true of biological kids, kids you may adopt and the children of relatives that you may be raising, such as your grandkids. Thankfully, there are several tax breaks that may help. Here’s what you need to know: to qualify for tax breaks for your dependent kids, each will need their […]

Indiana Jones’s Guide to Taxing Treasures

The Short Form: From Temples to Tax Forms—Indiana Jones’s Guide to Taxing Treasures https://bit.ly/44CMyXq

Cryptocurrency Exchange ordered to release customer information

A cryptocurrency exchange was ordered by a U.S. District Court to provide the IRS with customer names and information about certain transactions. Specifically, it must disclose any transaction that equaled at least $20,000 in a year between Jan. 1, 2016 and Dec. 31, 2020. Among other details, the company must turn over user birth dates, […]

US Tax Court denies Tax Credit

In a recent case, the U.S. Tax Court found that multiple shareholders in an S corporation weren’t entitled to a flowthrough of the research credit on their personal tax returns. The $501,531 tax credit was claimed by the air pollution control systems business in connection with 19 projects. The court ruled that the research expenses […]

Starting a business? How expenses will be treated on your tax return

Government officials saw a large increase in the number of new businesses launched during the COVID-19 pandemic. And the U.S. Census Bureau reports that business applications are still increasing slightly (up 0.4% from April 2023 to May 2023). The Bureau measures this by tracking the number of businesses applying for Employer Identification Numbers. If you’re […]

Is your “Home Office” deductible?

With so many people now working from home, they may refer to their workspaces as “home offices.” But does that space qualify them for home office tax deductions? Indeed, there are specific requirements workspaces must meet to qualify for deductions. For example, a portion of the home must be available for the exclusive use of […]

Are your business expenses substantiated?

The tax code, specifically Section 162(a), allows businesses a tax deduction for “ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business.” The hitch is that the expenses must be business related and properly substantiated. In one case, the U.S. Tax Court ruled that a married couple […]

That email or text from the IRS: It’s a scam!

“Thousands of people have lost millions of dollars and their personal information to tax scams,” according to the IRS. The scams may come in through email, text messages, telephone calls or regular mail. Criminals regularly target both individuals and businesses and often prey on the elderly. Important: The IRS will never contact you by email, […]

IRS rules on private foundations

Tax-exempt private foundations that award scholarships and grants must meet certain requirements. The IRS recently issued private letter rulings for three foundations. One, which makes grants to alumni of certain schools, won’t be taxed on related qualified expenses. A second foundation makes awards to dependents of its employees for college. It won’t be taxed on […]