Early withdrawal penalties upheld by Tax Court

At tax time, age matters. Taxpayers who take distributions from their retirement accounts before age 59½ will generally owe a penalty of 10% of the amount. Exceptions exist, such as the need to pay documented medical bills (within statutory limits). One taxpayer, a software developer under age 59½, took a distribution after losing his job. […]

Payment date for Backup withholding approaching

The due date for paying and reporting backup withholding is almost here, reminds the IRS. Businesses and other payers that were required to withhold tax from certain payments in 2022 to meet backup withholding requirements must report the amounts by filing Form 945 by Jan. 31, 2023. Payers that made all federal deposits in full […]

State Tax Policy as an Inflation Response

State Tax Policy as an Inflation Response https://bit.ly/40ra6gL

Tax Court ruling allows an Engineering Company to take deduction in an unusual case

Recently, the Tax Court ruled that an engineering company that installs energy efficient commercial building property (EECBP) qualified for a deduction. The company asserted it was entitled to a Sec. 179 deduction for the cost of installing EECBP in a Veterans Affairs (VA) hospital. In the absence of Congressional regulations, the court found that the […]

IRS launches Information Return Intake System for 1099s

On Jan. 23, 2023, the IRS launched the Information Returns Intake System (IRIS) to help taxpayers electronically file Forms 1099. Although individuals, businesses of all sizes, not-for-profits, government agencies and third parties can all use IRIS, the new portal is expected to benefit small businesses in particular. The service is free, and taxpayers can upload […]

Summary of the Latest Federal Income Tax Data

Summary of the Latest Federal Income Tax Data, 2023 Update https://bit.ly/3XXbeaa

Virtual currencies are now digital assets and still require reporting to the IRS

Are you properly accounting for your “digital asset-related” income? The IRS is reminding taxpayers that they must answer a digital asset question and report all digital asset-related income when they file their 2022 income tax returns. Be aware that the term “digital assets” has replaced “virtual currencies,” a term used in previous years. The question, […]

IRA impact on the IRS

The Inflation Reduction Act (IRA), which was enacted in 2022, included 38 provisions affecting the IRS. The agency estimated that these provisions required creating or revising 24 tax forms, 29 tax form instructions and three publications. In a recent report, the Treasury Inspector General for Tax Administration (TIGTA) assessed the IRS’s development of processes to […]

How the new SECURE 2.0 law may affect your business

If your small business has a retirement plan, and even if it doesn’t, you may see changes and benefits from a new law. The Setting Every Community Up for Retirement Enhancement 2.0 Act (SECURE 2.0) was recently signed into law. Provisions in the law will kick in over several years. SECURE 2.0 is meant to […]

Where’s my check?

Are you expecting a tax refund? With tax season officially underway as of Jan. 23, 2023, the IRS is encouraging taxpayers to streamline tax filing this year by having refunds directly deposited into their bank accounts. Although some people still like to receive a paper check, they should at least consider the advantages of direct […]