Burden to prove the deductions is on the taxpayer.

Business owners can generally deduct the ordinary and necessary costs to conduct business. However, the burden to prove the deductions are legitimate is on the taxpayer. In one case, the U.S. Tax Court ruled that a physician who owned a film company wasn’t entitled to deduct expenses associated with the business because he didn’t “engage […]

Seriously delinquent tax debt could put your passport at risk

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. Under such conditions, the U.S. State Dept. can deny, revoke or limit a passport. In one case, […]

4 tax challenges you may encounter if you’re retiring soon

Are you getting ready to retire? If so, you’ll soon experience changes in your lifestyle and income sources that may have numerous tax implications. Here’s a brief rundown of four tax and financial issues you may contend with when you retire: Taking required minimum distributions. These are the minimum amounts you must withdraw from your […]

HSA contribution limits for 2023 & 2024

Health Savings Accounts (HSAs) are tax-advantaged savings accounts funded with pretax dollars. Funds can be withdrawn tax-free to pay for qualified medical expenses. An HSA must be coupled with a high-deductible health plan (HDHP). The IRS annually adjusts HSA and HDHP amounts based on inflation. For 2024, the HSA contribution amount for individuals is $4,150 […]

Offer in Compromise in US Tax Court

Taxpayers who owe more taxes than they can pay may seek an Offer in Compromise with the IRS to settle the debt for less than the amount owed. In one case, a married couple offered to settle their $33,000 tax bill for $1,629. The couple argued that the IRS should accept the offer because they […]

Information Returns Intake System for 1099s

In January 2023, the IRS launched its Information Returns Intake System (IRIS), as required by 2019’s Taxpayer First Act. The web portal enables taxpayers to electronically file Forms 1099, a series of information forms used to report to the IRS everything from acquisitions of secured property to investments in life insurance contracts. Forms accepted by […]

Green energy projects tax credit

The Inflation Reduction Act amended the tax code to provide a domestic content bonus credit for owners of green energy projects placed in service after Dec. 31, 2022. It also added Sections 45Y and 48E that include the credit for investments in green energy storage technologies placed in service after Dec. 31, 2024. Domestic content […]

Achieving the right balance of working capital

Working capital — the funds your company has tied up in accounts receivable, accounts payable and inventory — is a critical performance metric. During times of rising inflation and interest rates, managers search for ways to free up cash and eliminate waste. However, determining the optimal amount of working capital can sometimes be challenging. Balancing […]

Secure 2.0 Act guidance requested

The American Institute of CPAs (AICPA) has requested guidance from the IRS on several provisions of the SECURE 2.0 Act. One provision noted in an AICPA letter to the IRS involves matching contributions on student loan payments. SECURE 2.0 aims to help employees who miss out on their employers’ matching retirement contributions because their student […]

IRS reveals 2024 health savings account limits

IRS reveals 2024 health savings account limits. What to know about the ‘significant increase,’ says advisor – CNBC https://bit.ly/42TDf53