GAO reports on hospital nonprofit status

The Government Accountability Office (GAO) has released a report on IRS oversight of nonprofit hospitals. It identifies legal requirements hospitals must satisfy to maintain a tax-exempt status, including community benefits. Several factors make it difficult for the IRS to verify compliance. For example, it’s up to the hospitals to decide the community benefits they provide. […]

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Taxation of Unemployment benefits

If you’ve lost your job, keep in mind that any unemployment compensation you receive is taxable income. Unemployment benefit recipients generally must include the payments in their income when they file their federal tax returns. You should receive Form 1099-G, Certain Government Payments, showing the amount of unemployment compensation paid to you during the year. […]

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TIGTA issues report on effectiveness of IRS cybersecurity measures

A Treasury Inspector General for Tax Administration (TIGTA) audit has determined that the IRS continues to make progress in many of its information technology program areas. Indeed, most required security controls and control enhancements were implemented for the Child Tax Credit Update Portal and the Secure Access Digital Identity system. However, shortcomings were revealed as […]

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GAO issues “High-Risk List”

The Government Accountability Office (GAO) issued a “High-Risk List” that highlights areas across the federal government that are vulnerable to waste, fraud, abuse and mismanagement, or that need broad reform. In its 2023 report, issued in April, the list includes the enforcement of tax laws. According to the report, this high-risk area includes two segments […]

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4 ways corporate business owners can help ensure their compensation is “reasonable”

If you’re the owner of an incorporated business, you know there’s a tax advantage to taking money out of a C corporation as compensation rather than as dividends. The reason: A corporation can deduct the salaries and bonuses that it pays executives, but not dividend payments. Therefore, if funds are paid as dividends, they’re taxed […]

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Debt Limit bill passes House

On April 26, the U.S. House of Representatives passed a bill to raise the government’s $31.4 trillion debt ceiling that includes sweeping spending cuts. The bill, which passed 217-215, isn’t expected to pass the Senate. In addition, President Biden has said he’ll veto it. The “Limit, Save, Grow Act” would increase the debt limit by […]

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Noncash Charitable donation failure

The U.S. Supreme Court (SCOTUS) recently declined to hear a case involving a charitable donation. To secure a tax deduction, property donated to a qualified charity must be accompanied by a contemporaneous receipt from the organization. If the value is more than $5,000, the taxpayer must also submit IRS Form 8283, Noncash Charitable Contributions, and […]

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