GAO reports on IRS technology

The Government Accountability Office (GAO) in a report rebukes the IRS for problematic IT modernization and cloud computing efforts. The GAO analyzed IRS legacy applications, software, and hardware data and assessed plans for 21 modernization initiatives. The GAO found that the IRS’s legacy IT environment includes applications that range from 25 to 64 years in […]

IRS evaluating taxability of state special tax refunds

Early birds: Hold up! The IRS is asking some taxpayers to wait a bit longer before they finalize and file their 2022 federal income tax returns. That’s because the IRS is still evaluating the taxability of special tax refunds and payments made last year by approximately 20 states to their residents. Some payments may be […]

Reading the tea leaves: Potential tax legislation in the new Congress

The 2022 mid-term election has shifted the scales in Washington, D.C., with the Democrats no longer controlling both houses of Congress. While it remains to be seen if — and when — any tax-related legislation can muster the requisite bipartisan support, a review of certain provisions in existing laws may provide an indication of the […]

Educators can still deduct $300 of out of pocket classroom costs

Educators: As you file your 2022 taxes, be aware there’s a tax deduction just for you. Even if you take the standard deduction, an eligible educator can deduct up to $300 in unreimbursed, out-of-pocket expenses. If you’re married filing jointly and both spouses are eligible, you may deduct up to $300 each. Based on inflation, […]

Is a IRS audit in your future?

More IRS audits are ahead, but for whom? That is the question asked by U.S. House Ways and Means Committee Chair Jason Smith (R-MO) in a letter to the Acting IRS Commissioner. Smith requested to see a plan for allocation of the $80 billion provided to the IRS by the Inflation Reduction Act. He noted […]

Have employees who receive tips? Here are the tax implications

Many businesses in certain industries employ individuals who receive tips as part of their compensation. These businesses include restaurants, hotels and salons. Tip definition Tips are optional payments that customers make to employees who perform services. They can be cash or noncash. Cash tips include those received directly from customers, electronically paid tips distributed to […]

AICPA recommends changes to tax code

The American Institute of Certified Public Accountants (AICPA) is recommending more than 60 changes to the current tax code. In a recent letter to the chairs and ranking members of the Senate Finance and House Ways and Means Committees, the AICPA raised “noncontroversial” issues that its members believe should be addressed in the interest of […]

Billionaire minimum tax proposed

President Biden renewed a proposal during the Feb. 7 State of the Union address to impose a 20% minimum tax on billionaires. In a typical year, the average billionaire pays only 8% in taxes, according to a White House fact sheet. This minimum tax would help ensure that the wealthiest Americans don’t pay a tax […]

Answers to your questions about 2023 limits on individual taxes

Many people are more concerned about their 2022 tax bills right now than they are about their 2023 tax situations. That’s understandable because your 2022 individual tax return is due to be filed in 10 weeks (unless you file an extension). However, it’s a good time to familiarize yourself with tax amounts that may have […]

President Biden proposes quadrupling tax on stock buybacks

In the Feb. 7 State of the Union address, President Biden called for quadrupling the tax on corporate stock buybacks. Critics say that such buybacks enable corporations to funnel tax-advantaged payments to wealthy investors instead of paying taxable dividends to shareholders. In August 2022, an excise tax on corporate stock buybacks was enacted that was […]