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 […]

Tax Extenders

With control of both the Senate and the House of Representatives at stake in November’s midterm election, the fate of so-called “tax extenders” may depend on the election’s outcome. However, inserting tax extenders into a continuing resolution to fund federal programs into fiscal year 2023, which begins Oct. 1, at the same levels appropriated for […]

Tax breaks that recognize caregivers

Missouri in Special Session

No agreement on tax cut plan as Missouri lawmakers return for special session – KTVI Fox 2 St. Louis https://bit.ly/3eKoOfo

Collections

Taxpayers who can’t pay their past-due tax bills may request a Collection Due Process (CDP) hearing, but they must support their claims. In one case, a physician and his wife, a retail manager, failed to timely file a tax return one year. They later filed a past-due return but didn’t pay the $19,690 tax due. […]

TIGTA audit of IRS procedures

Do IRS employees follow the law when contacting taxpayers? In most cases, yes, according to a recent audit. Taxpayers have the right to seek representation when contacted by the IRS. The Treasury Inspector General for Tax Administration (TIGTA) did its annual audit of IRS compliance practices to ensure these rights are protected and violations are […]

Rate hikes cause increased borrowing costs on federal government

Fed interest rate hikes poised to make the US national debt even more expensive https://fxn.ws/3UcOTUN

Is the settlement taxable?

Tax law excludes from “gross income” damages received in a legal action for “personal physical injuries or physical sickness,” if certain conditions are met. There must be a “direct causal link” between the damages and the injury. In one case, the U.S. Tax Court ruled that married taxpayers weren’t entitled to income exclusion for a […]

Mississippi filing relief

The IRS is providing tax relief to victims of the Mississippi water crisis, effective Aug. 30, 2022. You qualify for relief if you reside or have a business in Hinds County. Affected individuals and businesses now have until Feb. 15, 2023, to file returns and pay any taxes that were originally due during the relief […]