Proposed regulations cover digital assets

The IRS and U.S. Treasury Dept. have proposed regulations “to help end confusion involving digital assets and provide clear information and reporting certainty for taxpayers [and] tax professionals,” in the words of IRS Commissioner Danny Werfel. To prevent digital assets from being used to hide taxable income, the regulations would require brokers, cryptocurrency platforms and […]

IRS addresses technical error in Secure 2.0 Act

In Notice 2023-62, the IRS addressed a technical error in the SECURE 2.0 Act that wouldn’t have allowed catch-up contributions to 401(k)s and similar plans after 2023. Generally, taxpayers age 50 or older can make these additional contributions. When Congress included a requirement in SECURE 2.0 that certain higher-income taxpayers make catch-up contributions only to […]

IRS announces two-year transition period for Secure 2.0 Act’s Roth catch-up contribution

The IRS has announced a two-year transition period in the implementation of the SECURE 2.0 Act’s Roth catch-up contribution rule. Generally, taxpayers age 50 or older are allowed to make additional “catch-up” contributions to employer-sponsored retirement plans such as 401(k)s. SECURE 2.0 requires catch-up contributions by taxpayers who earned more than $145,000 (indexed for inflation) […]

New Missouri law to crack down on porch pirates

New Missouri law to crack down on porch pirates – Missourinet.com https://bit.ly/45XPb6Q

IRS found to be at-risk for exploitation

Information security at the IRS is an area of weakness, according to an audit by the Treasury Inspector General for Tax Administration (TIGTA). All federal agencies must have a corrective plan of action, or Plan of Action and Milestones (POA&M), TIGTA explained in a recent report. To test the effectiveness of the tax agency’s POA&Ms, […]

The IRS has updated table used for health insurance credit

The IRS has updated the table used to determine an individual’s health insurance premium tax credit for federally subsidized health plans. The benchmark to calculate the affordability of employer-sponsored health care will drop to 8.39% of household income for 2024. A plan is deemed affordable if the employee’s required contribution doesn’t exceed the annual percentage […]

Selling your home for a big profit? Here are the tax rules

Many homeowners across the country have seen their home values increase in recent years. According to the National Association of Realtors, the median price of existing homes sold in July of 2023 rose 1.9% over July of 2022 after a couple years of much higher increases. The median home price was $467,500 in the Northeast, […]

Are you subject to the Foreign Tax Compliance Act?

Are you subject to the Foreign Account Tax Compliance Act (FATCA)? You may be if you own foreign financial assets valued at more than $50,000 aggregate. Certain taxpayers must report these holdings annually to the IRS, using Form 8938. But the reporting threshold is generally higher for married taxpayers who file jointly and people living […]

Tax evasion leads to prision

A man who owned several companies was sentenced in 2022 to 30 months in prison for tax evasion and employment tax crimes. According to the U.S. Dept. of Justice, he withheld more than $1 million in taxes from his employees’ wages but didn’t pay required taxes to the IRS. After serving about 12 months of […]

Divorcing business owners should pay attention to the tax consequences

If you’re getting a divorce, you know the process is generally filled with stress. But if you’re a business owner, tax issues can complicate matters even more. Your business ownership interest is one of your biggest personal assets and in many cases, your marital property will include all or part of it. Transferring property tax-free […]