Guidance issued for Clean Vehicle Credit

The U.S. government has begun issuing guidance regarding the Clean Vehicle Credit in the new Inflation Reduction Act (IRA). The IRA introduced a $4,000 tax credit for the purchase of used EVs and updated the $7,500 credit for new ones, with major changes. To qualify for the credit, there are now new requirements, including caps […]

Business identity theft

Is the IRS successfully combatting business identity theft? The Treasury Inspector General for Tax Administration (TIGTA) recently took a look. In an audit, TIGTA reported that progress is being made by using filters to detect potential fraud, plus conducting prompt reviews of business tax returns with high-dollar refunds. However, it added: “TIGTA continues to believe […]

IRS will rebate late filing penalties

IRS to refund penalties for millions of taxpayers who filed late https://fxn.ws/3PP7AKU

More on the Inflation Reduction Act

The Inflation Reduction Act was signed into law by President Biden on Aug. 16. The bill comes with a price tag of $740 billion and imposes a new 15% minimum tax on large, profitable corporations. It also adds a 1% excise tax on stock buybacks. Other revenue would come from more enforcement of tax compliance […]

Inflation Reduction act won’t reduce inflation but will reduce deficit

A Penn Wharton Budget Model report is weighing in on the Inflation Reduction Act. It says the final version of the bill isn’t expected to increase inflation. However, the bill probably won’t reduce inflation soon, either. It will likely take 10 years for the legislation to lower non-interest cumulative deficits by $264 billion. Taxes on […]

How to Think About IRS Tax Enforcement Provisions in the Inflation Reduction Act

How to Think About IRS Tax Enforcement Provisions in the Inflation Reduction Act https://bit.ly/3Trs7Iz

Increase in IRS interest rates

Even IRS penalties are affected by inflation. The IRS just announced that fourth quarter 2022 interest rates for tax overpayment and underpayment will increase by 1%. The interest rate for overpayments will be 6% for most taxpayers and 5% for corporations. If a corporation overpays by more than $10,000, the rate will be 3.5%. The […]

CBO scores budget deficit

The Congressional Budget Office (CBO) estimated that the federal budget deficit for the first 10 months of fiscal year 2022 was $727 billion, with an expectation that “the total deficit for 2022 will be close to the $1 trillion estimate” it published in May. “That deficit projection doesn’t include costs for a possible executive action […]

Why an LLC might be the best choice of entity for your business

The business entity you choose can affect your taxes, your personal liability and other issues. A limited liability company (LLC) is somewhat of a hybrid entity in that it can be structured to resemble a corporation for owner liability purposes and a partnership for federal tax purposes. This duality may provide you with the best […]

Inflation Reduction revenue target

The IRA will raise revenue through a new 15% minimum tax on large, profitable corporations and a 1% excise tax on stock buybacks. The bill is intended to reduce the U.S. deficit by about $300 billion. Other revenue would come from stricter enforcement of tax compliance by the IRS. The IRA also includes significant provisions […]