Contingent liabilities: To report or not to report?

Disclosure of contingent liabilities — such as those associated with pending litigation or government investigations — is a gray area in financial reporting. It’s important to keep investors and lenders informed of risks that may affect a company’s future performance. But companies also want to avoid alarming stakeholders with losses that are unlikely to occur […]

Summer work

School is out for the summer and many teenagers will be looking for ways to earn money. That’s why the IRS is reminding young workers of their tax responsibilities. New employees must provide employers with a Form W-4 (Withholding Allowance Certificate). If they need help with the form, they can log onto the IRS website, […]

IRS processing backlog update

The IRS is facing an enormous backlog of unprocessed returns, due in part to COVID-19 and other issues. By April 29, 2022, the IRS reported the paper return backlog had topped 18.5 million. One solution being urged by a group of Republican senators is for the IRS to adopt 2-D barcode technology. This would allow […]

Is it possible to save too much?

The IRS is working to increase its audit rates

The IRS is working to increase its audit rates for higher earners https://cnb.cx/3NO75Qy

Determination Letters are going electronic

Employers must soon electronically submit a form to the IRS. Form 5300 (Application for Determination for Employee Benefit Plan) is filed to request a determination letter from the IRS for the initial qualification of a defined benefit or a defined contribution plan. Beginning June 1, 2022, Form 5300 must be submitted electronically here: https://bit.ly/3NOpPj1. The […]

Report on IRS handling of credits

As part of a series of COVID-19-related audits, the Treasury Inspector General for Tax Administration (TIGTA) has completed its evaluation of how the IRS handled advance premium tax credit (APTC) issues. TIGTA has found that the IRS “took immediate steps to remove excess APTC repayment” from 2020 tax returns. But it also identified 30,231 taxpayers […]

Refund available for Missouri Gas Tax Increase

Missouri sets up refunds of gas tax increase – The Center Square https://bit.ly/3mbCfWq

updated “Where’s My Refund” tool

Recently, the IRS updated its “Where’s My Refund” tool. Now taxpayers can check the status of current and two previous years’ refunds, including expected refund issuance dates. Updates for 2021 refunds are available within 24 hours of e-filing and four days of e-filing 2019 and 2020 returns. To access the tool, you’ll need your Social […]

Electric vehicle tax credit

The IRS has added more electric vehicles to its list of those eligible for a federal tax credit. The tax code provides a credit (of up to $7,500) to purchasers of qualified plug-in electric-drive passenger vehicles and light trucks. The credit phases out over four calendar quarters, beginning when a manufacturer has sold at least […]