Who receives an automatic extension?

Certain taxpayers receive an automatic extension to file their tax returns. Most taxpayers must formally request a filing extension (this year to Oct. 16, 2023) on Form 4868 and pay any tax due on April 18, 2023. However, U.S. citizens and resident aliens who live and work outside the U.S. and Puerto Rico receive an […]

Spring cleaning in QuickBooks

Have your company’s accounting records become cluttered with duplicate items and unused accounts? When you need to revise your QuickBooks® lists — such as the chart of accounts, customers and vendors — the software provides methods for deleting, inactivating and merging list entries. Here’s what you can do to help spruce things up. Deleting QuickBooks […]

IRS proposes Clean Vehicle Credit limits

The Inflation Reduction Act (IRA) extended and expanded the Section 30D Clean Vehicle (CV) Credit. However, recently proposed IRS regulations effectively limit the number of CVs eligible for the credit due to strict sourcing requirements. The proposed regs apply to CVs that buyers take delivery of on or after April 18, 2023. The CV Credit […]

Owe the IRS more in tax than expected? These are the next steps for business owners

Owe the IRS more in tax than expected? These are the next steps for business owners – CNBC https://bit.ly/3UWUoI0

M&A market: Looking back, looking forward

What is a substitute return?

If an individual has taxable income but doesn’t file a return, the IRS can prepare one under its “Substitute for Return” program. In one case, a man received $55,738 in retirement payments and $40 in interest one year but didn’t file a return or pay tax. The IRS prepared a return and informed him that […]

Live outside the US, then file by June 15

The IRS is reminding U.S. citizens and resident aliens that worldwide income (including wages, unearned income and tips) is subject to U.S. income tax, regardless of where taxpayers live or earn income. If you live outside the U.S. or Puerto Rico, you have an automatic two-month filing extension to June 15, 2023. But even with […]

Tax Court dismisses case brought by Whistleblower

A person who provides information about unpaid federal tax to the IRS Whistleblower Office (WBO) may qualify for a cash award. The information must be specific, credible and lead to the collection of tax. One tipster claimed that over 200 fast-food restaurants connected to a franchisor were “skimming cash off sales and not reporting the […]

How big is the tax gap?

The “tax gap” is the difference between the amount of tax owed for a tax year and the amount that’s actually paid on time and voluntarily. How big is it? The Treasury Inspector General for Tax Administration (TIGTA) conducted an audit “to assess the IRS’s process for developing the tax gap estimates.” TIGTA found issues […]

Retirement saving options for your small business: Keep it simple

If you’re thinking about setting up a retirement plan for yourself and your employees, but you’re worried about the financial commitment and administrative burdens involved, there are a couple of options to consider. Let’s take a look at a “simplified employee pension” (SEP) or a “savings incentive match plan for employees” (SIMPLE). SEPs are intended […]