Missing a W-2 or 1099 form?

What should you do if you haven’t yet received a 2022 Form W-2 or Form 1099-NEC from an employer? Don’t panic. Call the employer and ask for a copy of the form. If you still don’t receive it, call the IRS to find out if it has a copy of the missing form. If it […]

IRS issues scam alert

With tax season underway, new tax scams are on the rise. The IRS has issued an alert regarding new scams that urge people to use wage information on a tax return to claim false credits in hopes of getting a big refund. One scam currently circulating on social media encourages people to use tax software […]

Buying a new business vehicle? A heavy SUV is a tax-smart choice

If you’re buying or replacing a vehicle that you’ll use in your business, be aware that a heavy SUV may provide a more generous tax break this year than you’d get from a smaller vehicle. The reason has to do with how smaller business cars are depreciated for tax purposes. Depreciation rules Business cars are […]

Disclosure of Tax Havens and Offshoring Act

Eleven Democratic Senators are backing legislation, dubbed the Disclosure of Tax Havens and Offshoring Act, intended to provide transparency around corporations’ use of tax havens and incentives to offshore jobs. The bill would require public companies to disclose their financial reporting on a country-by-country basis. Supporters of the bill say that ensuring public access to […]

Taxpayer wins FBAR penalty case

On Feb. 28, a taxpayer prevailed in a case before the U.S. Supreme Court (SCOTUS) concerning the “Report of Foreign Bank and Financial Accounts” (FBAR). Taxpayers who have foreign financial accounts worth over $10,000 in the previous year must report them on annual FBARs or face penalties. Lower courts have disagreed on how to apply […]

Awarded money in a lawsuit or settlement? It’s only tax-free in certain circumstances

You generally must pay federal tax on all income you receive but there are some exceptions when you can exclude it. For example, compensatory awards and judgments for “personal physical injuries or physical sickness” are free from federal income tax under the tax code. This includes amounts received in a lawsuit or a settlement and […]

Charitable donations for non-itemizing taxpayers

Taxpayers may see the return of a popular but bygone tax deduction. A bipartisan group of 11 U.S. Senators seeks to expand and extend the expired deduction for charitable donations for non-itemizing taxpayers. Senate Finance Committee members James Lankford (R-OK) and Christopher Coons (D-DE) have introduced the Charitable Act. If passed, this bill would allow […]

Payroll Taxes withheld carry stiff penalities if not paid

Here’s why it’s critical for employers to comply with employment tax rules and pay the IRS what they collect from employees. In February, a Kentucky man was sentenced to 15 months in prison for willful failure to pay over federal income and employment taxes that he withheld from his employees’ paychecks over a period of […]

Use visual aids to enhance financial reporting

Graphs, charts, tables and other data visualizations can be inserted in your financial statement disclosures to improve transparency and draw attention to key accomplishments. As your organization prepares its year-end or quarterly financials, consider presenting some information in a more user-friendly, visual format. Reimagine data presentation In business, the use of so-called “infographics” started with […]

TIGTA reviews IRS examination policies

How does the IRS choose businesses for employment tax examinations and assess taxes if they aren’t in compliance? That’s what the Treasury Inspector General for Tax Administration (TIGTA) reviewed in a recent audit. The IRS Specialty Employment Tax (ET) segment conducts most employment tax examinations. TIGTA found that ET examinations had higher average dollars assessed […]