IRS reports improvements since receiving IRA funding

It’s been one year since the Inflation Reduction Act (IRA) became law. Among other provisions, the IRA provided the IRS with an additional $80 billion in funding. The Fiscal Responsibility Act, enacted in June, rescinded $1.39 billion of that amount and pared back the funding by about $10 billion each year for 2024 and 2025. […]

PBGC reports positive outlook for pension programs

There’s “good news for the defined benefit pension system overall,” says a report from the Pension Benefit Guaranty Corp. (PBGC). The PBGC protects private sector defined benefit pension plans for more than 33.5 million workers. The PBGC report shows “a continuing positive outlook” for its two pension insurance programs, the Single-Employer Program and the Multi-Employer […]

FINCEN reports increased employment-related crimes

The Financial Crimes Enforcement Network (FinCEN) recently reported a rise in certain employment-related crimes. The crimes involved workers’ compensation fraud and state and federal payroll tax evasion in the U.S. residential and commercial real estate construction industries. “FinCEN is committed to combating fraud,” said the acting FinCEN director in a statement where he highlighted how […]

The tax consequences of employer-provided life insurance

If your employer provides life insurance, you probably find it to be a desirable fringe benefit. However, if group term life insurance is part of your benefits package, and the coverage is higher than $50,000, there may be undesirable income tax implications. You’re taxed on income you didn’t receive The first $50,000 of group term […]

IRS revenue agent vs IRS revenue officer, What’s the difference?

What’s the difference between an IRS revenue agent and an IRS revenue officer? Agents are unarmed auditors who may conduct in-person field audits to review taxpayers’ records. Officers, on the other hand, are responsible for collecting delinquent taxes and securing overdue tax returns. To do so, these unarmed federal employees may visit homes and businesses […]

IRS challenges related party rental deduction

The IRS challenged a group of individuals who rented their homes to an S corporation (owned by them) for meetings and deducted the rental expenses. The IRS stated that the taxpayers hadn’t substantiated all of the meetings and didn’t present written documentation. But the U.S. Tax Court sided with the taxpayers, at least in part. […]

Guaranteeing a loan to your corporation? There may be tax implications

Let’s say you decide to, or are asked to, guarantee a loan to your corporation. Before agreeing to act as a guarantor, endorser or indemnitor of a debt obligation of your closely held corporation, be aware of the possible tax implications. If your corporation defaults on the loan and you’re required to pay principal or […]

Energy credits in the Inflation Reduction Act

The Inflation Reduction Act (IRA) established an energy investment credit program that incentivizes companies to build solar or wind energy facilities in low-income communities. The IRS has issued final regs and guidance (Revenue Procedure 2023-27) that provide definitions and requirements for the program. An increase in the credit for solar and wind facilities that receive […]

Overhead allocations: Rising costs require a fresh, disciplined mindset

From utilities and interest expense to executive salaries and insurance, many overhead costs have skyrocketed over the last few years. Some companies have responded by passing along the increases to customers through higher prices of goods and services. Is this strategy right for your business? Before implementing price increases, it’s important to understand how to […]

Application to be tax-exempt is a process

Organizations that are considering applying for tax-exempt status should understand that it’s a process. For starters, according to the IRS, the organization must be operated exclusively for charitable, religious, educational, scientific or other similar purposes. Organizations applying for recognition of tax-exempt status under IRC Section 501(c)(3) must complete and file a Form 1023-series application. Some […]