Filing day approaching

With tax day approaching, the IRS is reminding individuals that they have until April 18, 2023, to make 2022 contributions to a traditional or Roth IRA. Another reminder: Taxpayers in plans including 401(k)s and 403(b)s whose salary deferrals exceed the 2022 limit ($20,500 for taxpayers under age 50) must remove the excess deferral amount, plus […]

IRS penalties subject of proposed regulations

With a goal of making IRS penalties easier for taxpayers to understand, the IRS has issued proposed regs that examine how tax penalties are applied. According to the tax agency, the IRS seeks a process that it can administer with nationwide uniformity. Generally, the IRS can’t assess a penalty against a taxpayer unless the assessment […]

Is it a deductible legal expense?

Business owners can generally deduct business legal expenses on their tax returns. The taxpayer bears the burden of showing that the legal fees arose from business, rather than personal issues. In one case, a physician specializing in gene therapy and his wife (a surgeon) had multiple legal issues and deducted legal expenses of $360,295 for […]

IRS guidance coming regarding the IRA’s Clean Vehicle Credit

The Inflation Reduction Act (IRA) extended and expanded the Section 30D Clean Vehicle (CV) Credit, previously known as the Electric Vehicle (EV) Credit. The credit now covers “clean vehicles,” which include plug-in hybrids, hydrogen fuel cell cars and EVs. On April 17, 2023, the IRS will publish proposed regulations to clarify how a CV can qualify for the credit. […]

IRS uses bank deposits analysis for underreporting of income

If the IRS suspects a taxpayer isn’t reporting all income, it may conduct a “bank deposits analysis” to compare deposits with what the taxpayer reported. In one case, the IRS analyzed the bank deposits of a man who held multiple accounts in his name and in the names of his businesses. The IRS argued he […]

Will the New Markets Tax Credit be permanent?

Bipartisan legislation introduced in Congress would make the New Markets Tax Credit (NMTC) permanent. Currently, it’s set to expire on Dec. 31, 2025. The NMTC program helps economically distressed communities attract private capital by providing investors with a 39% nonrefundable federal tax credit. Since 2000, the U.S. Treasury Department has used the NMTC to make […]

Missouri Tax Package Would Set State Up for Success

Missouri Tax Package Would Set State Up for Success https://bit.ly/3mBTFiv

Reactions to IRS strategic plan

Reactions following the April 6 release of the IRS’s $80 billion spending plan were swift, not to mention, mixed. U.S. House Ways and Means Chair Jason Smith (R-MO) complained that the plan lacks specifics on items such as hiring and audits. And many Republicans are speculating that the IRS intends to boost audits of middle-class […]

TIGTA releases audit of IRS systems

The IRS made positive strides during the 2022 tax filing season, but work remains to shore up lingering areas of concern, according to a Treasury Inspector General for Tax Administration (TIGTA) audit. TIGTA found that by July 1, 2022, all 2020 paper tax returns were processed, but 9.5 million 2021 paper tax returns remained unprocessed. […]

The tax advantages of hiring your child this summer

Summer is around the corner so you may be thinking about hiring young people at your small business. At the same time, you may have children looking to earn extra spending money. You can save family income and payroll taxes by putting your child on the payroll. It’s a win-win! Here are four tax advantages. […]