SS Benefits includable in income

A U.S. Court of Appeals has ruled that a taxpayer’s Social Security (SS) benefits are includable in income. In the case, a former health insurance company employee didn’t report her SS income. She argued that the SS benefits were tax exempt because they were part of her employer-provided disability benefits. The U.S. Tax Court and […]

WOTC available through 2025

Is your business looking to hire? If so, you should know about a valuable one-time tax credit. The Work Opportunity Tax Credit (WOTC), available through 2025, encourages employers to hire from targeted groups that face employment barriers. Interested employers should start by contacting their state workforce agency to file a form. Employers must also obtain […]

Separating your business from its real estate

Does your business need real estate to conduct operations? Or does it otherwise hold property and put the title in the name of the business? You may want to rethink this approach. Any short-term benefits may be outweighed by the tax, liability and estate planning advantages of separating real estate ownership from the business. Tax […]

EARN Retirement Bill Update

A bill aimed at boosting retirement savings has been introduced by top U.S. Senate Finance Committee members. Senators Ron Wyden (D-OR) and Mike Crapo (R-ID) have added new text to a previous proposal, known as the Enhancing American Retirement Now (EARN) Act. Among other things, the $40 billion bill would encourage small businesses to adopt […]

Arizona filing relief

The IRS is providing tax relief to eligible victims of Arizona severe storms that occurred July 17 and 18, 2022. Taxpayers affected by the storms that reside or have a business in the Salt River Pima-Maricopa Indian Community now have until Nov. 15, 2022, to file returns and pay any taxes originally due during the […]

Seller-paid points: Can homeowners deduct them?

In its latest report, the National Association of Realtors (NAR) announced that July 2022 existing home sales were down but prices were up nationwide, compared with last year. “The ongoing sales decline reflects the impact of the mortgage rate peak of 6% in early June,” said NAR Chief Economist Lawrence Yun. However, he added that […]

Blockchain hurdles

At a recent American Bar Association (ABA) Tax Section meeting, members discussed obstacles preventing blockchain-based financial entities from gaining tax-exempt status. According to one member, decentralized autonomous organizations (DAOs) that execute blockchain transactions aren’t accountable or predictable. Applicants for tax-exempt status usually must explain how they conduct not-for-profit activities, which DAOs can’t do. In addition, […]

Independent Office of Appeals

In 2019, the Taxpayer First Act established the IRS Independent Office of Appeals (IOA) to resolve federal tax “controversies” without litigation. In general, the IOA’s resolution process is available to all taxpayers, but the IOA isn’t required to consider every dispute. Now, the IRS is proposing regulations to clarify what rules the IOA must follow […]

Why auditors prefer in-person interviews to assess fraud risks

Auditing standards require financial statement auditors to identify and assess the risks of material misstatement due to fraud — and to determine overall and specific responses to those risks. Here’s why face-to-face meetings are essential when assessing these risks. Audit inquiries Fraud-related questions are a critical part of the audit process. The AICPA requires auditors […]

Refund Claims

A Treasury Inspector General for Tax Administration (TIGTA) audit found that compliance efforts are needed to address refund claims based on net operating losses (NOLs) reported on Form 1139, “Corporation Application for Tentative Refund.” The CARES Act allows taxpayers with an NOL in a taxable year beginning in 2018, 2019 or 2020 to carry that […]