The Tax Treatments of cryptocurrency are complex

Questions surrounding the tax treatment of cryptocurrency are complex. According to new IRS Revenue Ruling 2023-14, the process of verifying ownership of cryptocurrency is called “staking.” And when a taxpayer has successfully staked his or her units of cryptocurrency, he or she may also receive “staking rewards” consisting of additional units. When does the taxpayer […]

Educational tax credits

Before long, students will be heading off to college or trade school. Higher education is expensive, but taxpayers who take post-high school coursework in 2023 (or who have dependents taking such courses) may qualify for one of two tax credits that can reduce their tax bills. The American Opportunity Tax Credit is worth up to […]

GAO questions IRS efficiency

A Government Accountability Office (GAO) report is questioning whether the IRS can be more efficient when auditing large partnerships, especially those with complicated structures. The GAO defines a large partnership as one with more than $100 million in assets and 100 or more partners. It reports that the number of large partnerships has risen almost […]

IRS updates FAQ’s for ERTC

In response to widespread fraud involving the Employee Retention Tax Credit (ERTC), the IRS has added new frequently asked questions (FAQs) about the credit to its website. The IRS stresses that while some promoters are claiming that all employers qualify for the ERTC, this isn’t true. Eligibility depends on the facts and your specific circumstances. […]

IRS provides guidance on whether supply chain disruption qualifies for ERC

Recent IRS guidance clarifies whether businesses affected by supply chain disruptions during the COVID-19 pandemic are entitled to claim an Employee Retention Tax Credit (ERTC). It reviews five illustrative scenarios in which business activities, including commerce, travel and group meetings, were suspended due to government orders. Details of the five scenarios can be found here: […]

Bill introduced to cut PGA Tour’s tax breaks

On June 26, 2023, U.S. Senate Finance Committee Chair Ron Wyden (D-OR) introduced two bills that would cut the PGA Tour’s tax breaks now that it’s merging with the Saudi Public Investment Fund (PIF). Currently, the PGA Tour is classified as a tax-exempt 501(c)(6) organization. The proposed Sports League Tax-Exempt Status Limitation Act would modify […]

Pocket a tax break for making energy-efficient home improvements

An estimated 190 million Americans have recently been under heat advisory alerts, according to the National Weather Service. That may have spurred you to think about making your home more energy efficient — and there’s a cool tax break that may apply. Thanks to the Inflation Reduction Act of 2022, you may be able to […]

IRS clears backlog of ERC claims

IRS Commissioner Danny Werfel recently said that the IRS is shifting its efforts after successfully clearing the backlog of valid Employee Retention Credit (ERC) claims. The agency will now focus its efforts on compliance work and putting in place additional procedures to handle fraudulent ERC claims. The ERC was enacted to help businesses during the […]

The advantages of using an LLC for your small business

If you operate your small business as a sole proprietorship, you may have thought about forming a limited liability company (LLC) to protect your assets. Or maybe you’re launching a new business and want to know your options for setting it up. Here are the basics of operating as an LLC and why it might […]

Enhanced Child Tax Credit in bill moving thru House and Senate

Republicans in the U.S. House of Representatives and the U.S. Senate are sponsoring a bill, dubbed the Providing for Life Act, that includes an expansion of the Child Tax Credit (CTC). Specifically, the bill would expand the CTC to up to $3,500 per child under age 18 and $4,500 per child under age six, make […]