IRS backlog – cause and effect

The Treasury Inspector General for Tax Administration (TIGTA) has issued an audit that evaluates whether the IRS timely and accurately processed individual paper and e-filed tax returns during the 2022 filing season. As of March 4, 2022, the IRS received 54.7 million tax returns and issued $129.2 billion in refunds. The audit found that “significant […]

Add it up: Deducting medical expenses

How Does Your State Rank on Sales Taxes?

Ranking Sales Taxes on the 2022 State Business Tax Climate Index https://bit.ly/3GuChSn

Improper use of taxpayer data

The IRS closed nearly 1,700 cases in which agency employees may have improperly accessed taxpayer data between 2012 and 2021, according to a recent report. The Government Accountability Office (GAO) found 27.3% of the incidents were substantiated as misconduct. The IRS established that misconduct occurred in 462 cases involving unauthorized information access, from among 1,694 […]

IRS audits

U.S. House Democrats held a hearing questioning the fairness of IRS audit rates. A recent GAO report found IRS audits of high-income Americans have dropped while audits of those claiming the Earned Income Tax Credit (EITC) remain high. The audit rate for EITC taxpayers is 0.77%, compared with 0.25% for all taxpayers. A taxpayer with […]

Getting Married? Don’t forget to check your tax withholding.

It’s wedding season — a happy time that includes gifts, cake and endless details. Chances are, taxes are the last thing on your mind. But the IRS wants to remind you of a few important steps. Soon, you’ll be filing your first tax return as a married person and that could affect how much taxes […]

Marijuana businesses face compliance woes

Marijuana businesses still face federal income tax compliance woes. Though 18 states allow cannabis for recreational use and 37 states allow it for medical use, the National Taxpayer Advocate Erin Collins recently issued a warning for those in the cannabis industry. Businesses that produce, distribute or sell cannabis “should be aware that there are significant […]

Proposed regs for inherited IRAs bring unwelcome surprises

Back in late 2019, the first significant legislation addressing retirement savings since 2006 became law. The Setting Every Community Up for Retirement Enhancement (SECURE) Act has resulted in many changes to retirement and estate planning strategies, but it also raised some questions. The IRS has been left to fill the gaps, most recently with the […]

e-file your payroll tax returns

The IRS is urging employers to e-file payroll tax returns. Common payroll tax forms, including Forms 940, 941, 943 and 944, all can be submitted electronically using third-party software approved by the IRS or through a tax professional. Filers can sign e-filed returns with a signature PIN assigned by the IRS or by printing, signing, […]

IRS audits

If you’re worried about an IRS audit, there’s good news! According to a recent Government Accountability Office report, audits of individuals between 2010 and 2019 decreased for all income brackets, from 0.9% to 0.25%. Higher-income taxpayers experienced the biggest decline in audits, probably because they require more IRS staff review and resources. Lower-income audits, on […]