IRS update on diversity

IRS Commissioner Chuck Rettig recently outlined (https://bit.ly/3uvlvOu ) how the agency has expanded its services to diverse communities. Specifically, he detailed steps the IRS has taken since 2021 to expand services offered in multiple languages. Examples he cited include: providing Form 1040 in Spanish; making Publication 1, “Your Rights as a Taxpayer” available in 20 […]

The Trust Fund Recovery Penalty

Employers that withhold taxes from employee wages but don’t pay them over to the IRS may face a penalty of 100% of the unpaid tax. The Trust Fund Recovery Penalty (TFRP) can be assessed personally against “responsible” parties. One corporate president and his then-wife (the corporate secretary) were assessed a TFRP of $146,682 for the […]

Vapor Taxes by State, 2022

Vapor Taxes by State, 2022 https://bit.ly/3bYi508

IRS funding increase proposed

Is better customer service from the IRS coming? The U.S. House of Representatives Appropriations Subcommittee has approved the fiscal 2023 Financial Services and General Government bill, including IRS funding that is $1 billion above the FY 2022 level. Subcommittee Chair Mike Quigley (D-IL) said this “continues restoring the IRS from draconian cuts this agency has […]

Report on Stimulus payments

A new Government Accountability Office (GAO) report, “Stimulus Checks: Direct Payments to Individuals During the COVID-19 Pandemic,” states that the federal government made $931 billion in stimulus payments in 2020 and 2021. However, 2% of those payments were made improperly. The GAO suggests that the IRS and Treasury Department can reduce errors while administering tax […]

2022 Q3 tax calendar: Key deadlines for businesses and other employers

Here are some of the key tax-related deadlines affecting businesses and other employers during the third quarter of 2022. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. August […]

Impact of Divorce on Taxes

If you’re getting divorced, you have one more thing to think about: taxes. When you receive a final divorce decree, update your withholding by filing a new W-4 with your employer. If you receive alimony, you may need to increase withholding or make estimated payments. However, if your divorce was finalized after Dec. 31, 2018, […]

The research and development credit

U.S. Rep. Jackie Walorski (R-IN) has introduced a bill that would double the research and development (R&D) credit. The Fostering Innovation and Research to Strengthen Tomorrow (FIRST) Act would double the “traditional” credit to 40%. For more established companies, the existing credit rate, which uses a complicated formula, would double, from 20% to 40% of […]

Vehicle expenses: Can individual taxpayers deduct them?

It’s not just businesses that can deduct vehicle-related expenses on their tax returns. Individuals also can deduct them in certain circumstances. Unfortunately, under current law, you may not be able to deduct as much as you could years ago. For years prior to 2018, miles driven for business, moving, medical and charitable purposes were potentially […]

Global minimum tax update

Requiring large multinational corporations to report income everywhere they operate is essential to a global deal on minimum corporate income tax, according to Kimberly Clausing, a UCLA law professor who recently served as the U.S. Deputy Assistant Treasury Secretary for tax analysis. Clausing said the country-by-country reporting provision is a “core principle” of Pillar Two, […]