Failure to Report Foreign Bank Account

In a recent court case, a taxpayer hit with an IRS penalty of $2,173,703 claimed that the penalty violated the excessive-fines clause of the U.S. Constitution. She’s now seeking help from the U.S. Supreme Court. The penalty involves her failure to file a required “Report of Foreign Bank and Financial Accounts” to timely disclose a […]

Remember 9/11

“Are you guys ready? Let’s roll.” –Todd Beamer, a passenger on United Airlines Flight 93. We remember……

Deducting business-related restaurant meals

AICPA requests expanded relief

AICPA asks IRS to expand penalty relief https://bit.ly/3RRPWrk

The Federal Budget versus National Income and Product Accounts

Should you be worried that federal government budget numbers and the national income and product accounts (NIPAs) numbers for fiscal years 2022–2023 don’t match? For example, current receipts in the NIPAs exceed projected revenues in the Congressional Budget Office’s (CBO) baseline by about 5%. According to the CBO, that’s due to “conceptual differences.” The annual […]

Withholding Tax Case in the News

Most business owners and managers understand their responsibilities to withhold Social Security, Medicare and income taxes from employee wages. One Florida staffing company manager who didn’t follow the law learned about consequences the hard way: He was sentenced to 48 months in prison. The manager admitted to the U.S. District Court for the Southern District […]

Clean Vehicle Credit comes with caveats

The Inflation Reduction Act (IRA) includes a wide range of tax incentives aimed at combating the dire effects of climate change. One of the provisions receiving considerable attention from consumers is the expansion of the Qualified Plug-in Electric Drive Motor Vehicle Credit (IRC Section 30D), now known as the Clean Vehicle Credit. While the expanded credit seems […]

National Preparedness Month

September is National Preparedness Month. The height of hurricane season is fast approaching and there’s an ongoing threat of wildfires and flooding in many areas of the country. Therefore, the IRS is urging you to develop an emergency preparedness plan, or if you already have one, update it for 2022. Specifically, it’s critical to secure […]

Tax Return Backlog

How is the IRS progressing through its tax return processing backlog? As of Aug. 19, the IRS reports that it had 8.7 million unprocessed individual tax returns received in calendar year 2022. Among the returns are 1.7 million that contain errors or require special handling, while 7 million are paper returns that still must be […]

Inflation Reduction Act provisions of interest to small businesses

The Inflation Reduction Act (IRA), signed into law by President Biden on August 16, contains many provisions related to climate, energy and taxes. There has been a lot of media coverage about the law’s impact on large corporations. For example, the IRA contains a new 15% alternative minimum tax on large, profitable corporations. And the […]