IRS collection activity in the news

One outcome of the Inflation Reduction Act is the collection of unpaid taxes owed by certain high-income individuals. In Sept. 2023, the IRS announced that it had begun contacting 1,600 taxpayers that collectively owe hundreds of millions of dollars in recognized taxes. Already, $122 million have been collected. Among the individuals, one was ordered to […]

2024 State Business Tax Climate Index

2024 State Business Tax Climate Index https://bit.ly/471s8J5

COVID fraud

The rapid distribution of COVID-19 relief funds was a perfect storm for fraud, according to a Government Accountability Office (GAO) report. Most of the nearly $5 trillion in emergency relief spending “went to the intended recipients,” the report stated, but large amounts were siphoned off by fraudsters. A major factor contributing to the fraud was […]

IRS can use bank deposit analysis to determine income

If the IRS suspects a taxpayer isn’t reporting all income, it may conduct a “bank deposits analysis” to compare deposits with what was reported on a tax return. In one case, the IRS found that a taxpayer had unreported income after conducting a bank deposits analysis. When notified of the unreported income by the IRS, […]

Are scholarships tax-free or taxable?

With the rising cost of college, many families are in search of scholarships to help pay the bills. If your child is awarded a scholarship, you may wonder about how it could affect your family’s taxes. Good news: Scholarships (and fellowships) are generally tax-free for students at elementary, middle and high schools, as well as […]

An Update on the ERC program

Recently, the IRS halted processing of claims for the Employee Retention Credit (ERC), due to a high volume of fraudulent claims. The moratorium is through at least the end of 2023. ERC claims that were already filed are now subject to longer processing, including heightened scrutiny to weed out fraud. The IRS is creating a […]

Timing bonuses for a tax deduction

Businesses planning to pay employees year-end bonuses can time their payments to reduce tax. For example, if your business operates on the cash basis, you must deduct bonuses in the year they’re paid. So you could pay bonuses either in late 2023 or early 2024, whichever makes the most tax sense. Accrual-basis businesses must pay […]

Business automobiles: How the tax depreciation rules work

Do you use an automobile in your trade or business? If so, you may question how depreciation tax deductions are determined. The rules are complicated, and special limitations that apply to vehicles classified as passenger autos (which include many pickups and SUVs) can result in it taking longer than expected to fully depreciate a vehicle. […]

EV tax credits

For many car buyers, new electric vehicles (EVs) are priced out of reach, even when tax credits are applied. But it still may be possible to buy an affordable EV and qualify for a credit. Previously owned EVs and fuel cell vehicles purchased from a licensed dealer on or after Jan. 1, 2023, for $25,000 […]

What is your marital status?

Major life changes can greatly affect your tax situation. This is especially true if you get married or divorced. If you experienced one of these events, be sure to address it with your tax advisor as part of your year-end tax planning. Indeed, your marital status for the entire year is determined as of Dec. […]