Does Your State Have an Estate or Inheritance Tax?

Does Your State Have an Estate or Inheritance Tax? https://bit.ly/3A5ThgC

IRS warns on scams

“Taxpayers should not kid themselves into believing they can hide income from the IRS,” warns IRS commissioner Chuck Rettig. That doesn’t seem to stop some people from trying, often with assistance from unethical tax preparers. So the IRS is fighting back. It plans to hire up to 200 attorneys to help combat abusive tax scams. […]

IRS uses voice bots to cut wait time

One of the ways the IRS is addressing complaints about phone call wait times is with voice bots. The agency has been using voice-activated software to help taxpayers navigate service menus and get answers to relatively simple questions since January 2022. Now, it’s expanding bot use to help callers set up and modify payment plans. […]

Your estate plan: Don’t forget about income tax planning

As a result of the current estate tax exemption amount ($12.06 million in 2022), many people no longer need to be concerned with federal estate tax. Before 2011, a much smaller amount resulted in estate plans attempting to avoid it. Now, because many estates won’t be subject to estate tax, more planning can be devoted […]

The Impact of the Earned Income Tax Credit (EITC) on IRS audits

The Congressional Research Service (CRS) has issued a report (https://bit.ly/3MVTXb7 ) that examines the impact of the Earned Income Tax Credit (EITC) on IRS audits. The report was spurred by concern that the IRS is auditing low-income taxpayers, particularly taxpayers who claim the EITC, at disproportionately high rates compared with higher-income taxpayers. “These higher audit rates […]

Report on IRS Whistleblower Office

In a report to Congress, the IRS’s Whistleblower Office said that in 2021 the agency collected more than $245 million from noncompliant taxpayers as a result of whistleblowers’ tips. The IRS made 179 awards totaling more than $36 million to the whistleblowers. Since the whistleblower program began in 2007, the number and amounts of awards […]

Is your corporation eligible for the dividends-received deduction?

There’s a valuable tax deduction available to a C corporation when it receives dividends. The “dividends-received deduction” is designed to reduce or eliminate an extra level of tax on dividends received by a corporation. As a result, a corporation will typically be taxed at a lower rate on dividends than on capital gains. Ordinarily, the […]

IRS impersonator scams

You can help fight IRS impersonator scams. The Treasury Inspector General for Tax Administration (TIGTA) is alerting taxpayers about scammers claiming to be from the IRS. These criminals tell victims they owe unpaid tax and threaten them with arrest or other consequences if the victims don’t send money. Scammers may also ask for personal information, […]

Federal Revenue collections up

U.S. revenues for fiscal year 2022 so far have exceeded predictions, according to the Congressional Budget Office (CBO). The CBO reports that FY 2022 revenues outpaced the same period in FY 2021 by 29%, due to increases in individual taxes, payroll taxes and corporate income tax collections. The estimated federal budget deficit for FY 2022 […]

Private business owners: Don’t wait until year end to evaluate financial performance

How often does your company generate a full set of financial statements? It’s common for smaller businesses to issue only year-end financials, but interim reporting can be helpful, particularly in times of uncertainty. Given today’s geopolitical risks, mounting inflation and rising costs, it’s wise to perform a midyear check-in to monitor your year-to-date performance. Based […]