Secure Act 2.0 Catch up Provisions

The IRS has issued proposed regulations addressing several SECURE 2.0 Act provisions related to catch-up contributions. These are additional amounts that employees age 50 and older can contribute to 401(k)s and other employer plans. The proposed regs provide guidance for plan administrators. They include proposed rules related to a provision requiring that catch-up contributions made […]

Taxpayer Advocate releases annual report

The National Taxpayer Advocate (NTA) released her latest annual report to Congress, which identifies problems that taxpayers face in dealing with the IRS. While the NTA reported there has been “overall improvement in IRS taxpayer service,” there are still “persistent challenges.” One of the most serious problems involves IRS delays in processing the Employee Retention […]

Planes, trains and deductible business travel

What is a CP24 notice?

What does it mean if you receive a CP24 notice from the IRS? Don’t panic. It’s probably not bad news. The IRS sends this notice when the amount of tax paid on a taxpayer’s return doesn’t match its records of estimated tax payments posted. A CP24 generally will inform you that the IRS has corrected […]

Hydrogen Production Tax Credit regulations issued

The IRS has issued final regulations that broaden the Inflation Reduction Act’s Clean Hydrogen Production Tax Credit (Section 45V). In a nutshell, the final regs expand the number of hydrogen production sources that qualify for the credit. Among other matters, the final regs clarify how hydrogen producers can determine credit eligibility. Producers include those using […]

Adoption tax credits: Easing the financial journey of parenthood

There are two tax breaks that help eligible parents offset the expenses of adopting a child. In 2025, adoptive parents may be able to claim a credit against their federal tax for up to $17,280 of “qualified adoption expenses” for each child. This is up from $16,810 in 2024. A tax credit is a dollar-for-dollar […]

What will happen with expiring tax provisions?

How will Republican lawmakers address expiring provisions in the Tax Cuts and Jobs Act and tax-related campaign promises? There are various opinions on how to proceed. President-Elect Donald Trump is calling for “one powerful bill” to address tax, border and energy issues. House Ways and Means Committee Chair Jason Smith (R-MO) also recommends one reconciliation […]

Deductions versus credits

One of the most common misconceptions about filing an income tax return is the distinction between deductions and credits. Deductions lower a taxpayer’s taxable income before the tax is calculated. For instance, on an individual return, you can either claim the standard deduction or itemize deductions, depending on which option reduces your taxable income more. […]

The tax treatment of intangible assets

Intangible assets, such as patents, trademarks, copyrights and goodwill, play a crucial role in today’s businesses. The tax treatment of these assets can be complex, but businesses need to understand the issues involved. Here are some answers to frequently asked questions. What are intangible assets? The term “intangibles” covers many items. Determining whether an acquired […]

IRS tax offset program

Taxpayers with outstanding federal tax debt may be subject to the IRS tax offset program. It allows the IRS to use federal refunds to cover unpaid taxes and other debt, such as child support. The Treasury Inspector General for Tax Administration (TIGTA) recently reported on the program. From tax years 2020–2022, nearly $40.1 billion was […]