How will the IRS contact you?

If the IRS needs to initiate an in-person contact with you, it generally follows a three-step process. The agency typically makes first contact using regular mail delivered by the U.S. Postal Service. The IRS will mail multiple letters, for example, to remind a taxpayer of an overdue tax bill or an unfiled tax return. If […]

5 tax tips for older adults

5 tax tips for older adults – The Hill https://bit.ly/3KH7zcw

Social Security wage base increases

For 2023, the Social Security wage base notably increased by $13,200, to $160,200. (Wages and self-employment income above the threshold aren’t subject to the 6.2% Social Security tax.) For 2024, the Social Security Administration’s Office of the Chief Actuary (OCA) is projecting that the wage base will increase by $7,500, to $167,700. Note that actual […]

IRS issues proposed regs for clean vehicle tax credit

The IRS has issued proposed regs for the new clean vehicle tax credit, which was part of the Inflation Reduction Act. The maximum credit is $7,500 per vehicle placed in service on or after April 18, 2023. A vehicle that meets the requirements for critical materials may qualify for a $3,750 credit. A vehicle that […]

Does Your State Have a Throwback or Throwout Rule?

Does Your State Have a Throwback or Throwout Rule? https://bit.ly/3UgOzVs

Is my mileage deductible?

Business owners can generally deduct ordinary and necessary costs of doing business, if they prove the costs are legitimate. One married couple owned an engineering firm. Among other tax issues, for two tax years, they claimed depreciation of $76,264 on three vehicles, but didn’t provide required details including each vehicle’s ownership, cost and useful life. […]

New IRS guidance on Trust Fund Recovery Penalty

New IRS guidance says that during an investigation, revenue officers must wait to send proposed assessments of the Trust Fund Recovery Penalty (TFRP). The TFRP is assessed on individuals who are responsible for collecting, accounting for and paying over payroll taxes but willfully fail to do so. The penalty is equal to the amount of […]

Choosing an entity for your business? How about an S corporation?

If you’re starting a business with some partners and wondering what type of entity to form, an S corporation may be the most suitable form of business for your new venture. Here are some of the reasons why. A big benefit of an S corporation over a partnership is that as S corporation shareholders, you won’t […]

Ways and Means members denounce OECD funding

In a letter to the chair and ranking member of the House Appropriations State Department Subcommittee, 10 U.S. House Republicans denounced U.S. contributions to the Organisation for Economic Co-operation and Development (OECD). The Ways and Means Committee members claim that the OECD “advocates against the economic interests of United States workers and business.” They object […]

New Scam Alert

The IRS is warning of a new tax scam promoted on social media. The scam encourages people to manually fill out false W-2 forms, claiming large income and withholding figures. They then file bogus tax returns claiming false refunds. One variation of the scam involves making false claims for sick and family medical leave for […]