What is practicing before the IRS?

In general, any tax professional (including in-house tax counsel) who submits Form 2848, Power of Attorney and Declaration of Representative, is considered to be “practicing before the IRS.” This means they’re subject to Circular 230. The IRS Office of Professional Responsibility has issued an alert that answers frequently asked questions about the issue. The alert […]

National Taxpayer Advocate wants improvements to correspondence audits

In a recent report to Congress, the National Taxpayer Advocate addressed several of her service’s FY 2024 priorities. One of them is to improve correspondence audit processes. Most IRS audits are conducted by correspondence (through the mail), but taxpayers often have trouble navigating the process. They may not, for example, understand the notices they receive, […]

What’s in the Fiscal Responsibility Act?

President Biden has signed into law the new debt ceiling agreement that he reached with U.S. House of Representatives Speaker Kevin McCarthy (R-CA). The Fiscal Responsibility Act (FRA) suspends — as opposed to raising — the debt ceiling until 2025, after the next presidential election. The FRA also makes a variety of changes related to […]

IRS backlog continues

The IRS continues to have a backlog of unprocessed paper amended tax returns, the National Taxpayer Advocate (NTA) recently reported to Congress. However, the overall backlog of original and amended paper returns has been significantly reduced in the past year. “The IRS reduced its backlog of unprocessed paper tax returns from 13.3 million at the […]

PGA’s tax exempt status questioned

Some members of Congress are questioning the PGA Tour’s tax-exempt status after it announced a merger with the Saudi Arabian-funded LIV Golf. The PGA Tour is currently exempt from federal taxes under a section of the Internal Revenue Code designed for certain groups, including some sports leagues. Senate Finance Committee Chair Ron Wyden (D-OR) expressed […]

2023 Q3 tax calendar: Key deadlines for businesses and other employers

Here are some of the key tax-related deadlines affecting businesses and other employers during the third quarter of 2023. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. July […]

Offer in compromise rejected

Taxpayers who owe more taxes than they can pay may seek an Offer in Compromise (OIC) with the IRS to settle their debt for less than the amount owed. In one case, the IRS rejected the OIC request of a married couple who offered to pay $45,966 to settle their joint tax debt of $437,369. […]

Tax return on extension?

Did you request an automatic extension to file your 2022 tax return? If so, you still have until Monday, Oct. 16 to file, but there might be significant advantages to filing ahead of the deadline. That is, if you’re due a refund, the sooner you file your return, the sooner you’ll get your refund. Or, […]

Are you married and not earning compensation? You may be able to put money in an IRA

When one spouse in a married couple is not earning compensation, the couple may not be able to save as much as they need for a comfortable retirement. In general, an IRA contribution is allowed only if a taxpayer earns compensation. However, there’s an exception involving a “spousal” IRA. It allows contributions to be made […]

District Court finds couple liable

In a recent U.S. District Court decision, the court found that a married couple who owed back taxes committed fraudulent transfers. The husband executed the transfers about four months after the IRS issued a notice of unpaid tax liabilities threatening a levy on the couple’s bank accounts and seizure of property. A total of $287,938 […]