401(k) limit increases to $23,000 for 2024, IRA limit rises to $7,000

401(k) limit increases to $23,000 for 2024, IRA limit rises to $7,000 … – IRS https://bit.ly/3u0Edjt

Common Sense Recommendations for the Application of Tax Law to Digital Assets

Developing guidance regarding the taxation of digital assets hasn’t been easy for the U.S. Senate Finance Committee. The committee sought comment from the public and a group of 30 tax law academics responded by compiling “common sense” answers in a recent report. The report makes two general points that are deemed “central to any coherent […]

IRS extends acceptance of digital signatures

The IRS announced it has extended the acceptance of digital signatures indefinitely “until more robust technical solutions are deployed.” In addition, the use of encrypted email when working directly with IRS personnel has been extended until Oct. 31, 2025. The IRS originally allowed taxpayers and CPAs to use digital signatures and encrypted email during the […]

Facing a future emergency? Two new tax provisions may soon provide relief

Perhaps you’ve been in this situation before: You have a financial emergency and need to get your hands on some cash. You consider taking money out of a traditional IRA or 401(k) account but if you’re under age 59½, such distributions are not only taxable but also are generally subject to a 10% penalty tax. […]

Does the IRS evaluate employees by how much they collect?

The IRS isn’t allowed to evaluate its enforcement employees by using any record of tax enforcement results (ROTERs) and certain other factors. In a recent audit, the Treasury Inspector General for Tax Administration (TIGTA) examined whether the IRS complied with the requirements. The IRS defines ROTERs as data, statistics, compilations of information, or other numerical […]

What is ordinary and necessary, when it comes to deductions?

Tax law generally allows deductions for ordinary and necessary business expenses incurred in carrying on a trade or business. However, an activity must be conducted with continuity and regularity and with the primary purpose of realizing income or profit. In one new case, the U.S. Tax Court found an individual didn’t conduct an activity in […]

The Social Security wage base for employees and self-employed people is increasing in 2024

The Social Security Administration recently announced that the wage base for computing Social Security tax will increase to $168,600 for 2024 (up from $160,200 for 2023). Wages and self-employment income above this threshold aren’t subject to Social Security tax. Basic details The Federal Insurance Contributions Act (FICA) imposes two taxes on employers, employees and self-employed […]

HSA contribution limits

In addition to participants and their family members, employers can contribute to employee health savings accounts (HSAs) on a tax-advantaged basis. Such contributions are considered employer-provided coverage of medical costs and are, therefore, excludable from the employer’s income. The 2023 limit for employee and employer contributions combined is $3,850 for individual accounts and $7,750 for […]

IRS Commissioner testifies before House Oversight Committee

Recently, IRS Commissioner Daniel Werfel testified before a U.S. House Oversight Committee about achievements attributable to the Inflation Reduction Act’s supplemental funding for the agency. In particular, Werfel named three successes: 1) improved access to the IRS for taxpayers via customer service, 2) upgraded IT infrastructure that will help the agency identify and audit wealthy, […]

Tips for a faster month-end close

Does your company struggle to close its books at the end of each month? The month-end close requires accounting personnel to round up data from across the organization. This process can strain internal resources, potentially leading to delayed financial reporting, errors and even fraud. Here are some simple ways to streamline your company’s monthly closing […]