Seriously delinquent tax debt (SDTD) could put your passport at risk (unless an exception applies). In 2023, SDTD is an unpaid federal tax assessment exceeding $59,000, where a lien has been filed and other remedies have been exhausted. If such conditions exist, the U.S. State Dept. can deny, revoke or limit a passport. One taxpayer […]
Read More SDTD status can put your passport at riskA glitch in the recently passed SECURE 2.0 Act involving catch-up contributions has been uncovered. A trade group, the American Retirement Association, noticed a technical error and has alerted the U.S. Treasury Dept. and the Joint Committee on Taxation (JCT), which are studying how to correct it. The law was supposed to allow certain taxpayers […]
Read More Glitch in tax bill stops catch-up contributionsMost retirement plan distributions are subject to income tax and may be subject to an additional penalty if you take an early withdrawal. What’s considered early? In general, it’s when participants take money out of a traditional IRA or other qualified retirement plan before age 59½. Such distributions are generally taxable and may be subject […]
Read More Retirement plan early withdrawals: Make sure you meet the requirements to avoid a penaltyThe IRS estimates that 80% of taxpayers who are eligible for the Earned Income Tax Credit actually claim it. But that leaves 20% who don’t. Many people also leave the Child Tax Credit, Additional Child Tax Credit, Credit for Other Dependents and American Opportunity Tax Credit on the table. To help reach these taxpayers, the […]
Read More Are you eligible for refundable credits?In a new report, the Congressional Research Service (CRS), a nonpartisan advisory group, reviews several ways the federal income tax system might treat small companies preferentially. The CRS studied 14 current small business tax benefits, including an expensing allowance for machinery and equipment and tax credits for start-ups to establish employee retirement plans. It found […]
Read More CRS issues report on small company tax provisionsWhen companies report financial results, they often rely on estimates made by management. Examples include the allowance for doubtful accounts, warranty obligations, costs of pending litigation, goodwill impairment and the fair values of acquired intangible assets. How do auditors evaluate whether amounts reported on the financial statements for these items seem reasonable? Inquiry and testing […]
Read More Auditing accounting estimatesThe Government Accountability Office (GAO) has issued a report on corporate income tax rates before and after the enactment of the Tax Cuts and Jobs Act (TCJA) in Dec. 2017. The GAO described the percentage of large corporations that had no federal income tax liability, the average effective tax rates of large corporations and the […]
Read More GAO reports on corporate tax ratesHouse Ways and Means Committee Chairman Jason Smith (R-MO) is planning aggressive oversight of the IRS. To that end, he’s established an online form to assist IRS personnel who want to submit information confidentially to the committee. Smith said such information can include concerns, information or documents related to misconduct, maladministration, taxpayer mistreatment, wrongdoing or […]
Read More IRS oversight by Ways and Means CommitteeLife events that should prompt an estate plan review
Read More Life events that should prompt an estate plan reviewThese are 5 scams to watch out for in 2023, according to a consumer protection expert https://cnb.cx/3Y1yaVS
Read More 5 scams to watch out for in 2023
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