The IRS direct file program may shut down in new administration

The IRS’s Direct File program, which was rolled out to taxpayers in 12 states during the 2024 tax season, enables eligible individuals to file returns with the IRS. In May 2024, the IRS announced it would expand Direct File. However, in a recent letter, 29 U.S. House Republicans asked President-Elect Trump to use an executive […]

SALT deduction set to expire after 2025

The Tax Cuts and Jobs Act capped the state and local tax (SALT) deduction at $10,000. This “SALT cap” is scheduled to expire after 2025. The future of the cap is sure to play a key role in tax policy negotiations on Capitol Hill next year. Some Democratic and Republican lawmakers, mainly from high-tax states, […]

Premium Tax Credit continues through 2025

The Inflation Reduction Act extended the premium tax credit (PTC) through the end of 2025. The credit helps eligible individuals cover their premiums for health insurance purchased through the Health Insurance Marketplace. The Congressional Budget Office recently estimated if the expiring credit isn’t renewed, 3.8 million more people will go uninsured each year over a […]

How do auditors verify account balances and transactions?

Audit season is just around the corner for calendar-year entities. Understanding the types of source documents your audit team might request can minimize disruptions during audit fieldwork and maximize your audit’s effectiveness. Here are some common sources of “substantive evidence” that auditors gather to help them form an opinion regarding your financial statements. Original source […]

Tax avoidance or tax evasion?

Do you know the difference between tax avoidance and tax evasion? Tax avoidance is taking legitimate actions to reduce your tax bill, such as funding an IRA or appropriately claiming a tax credit. Tax evasion is a deliberate failure to comply with the tax law. It includes actions such as falsifying tax records, inflating expenses […]

Act fast if you want to expense equipment in 2024

Businesses must act fast if they plan to take the valuable Sec. 179 expense deduction this year. In 2024, you can expense up to $1.22 million in qualified assets. The deduction begins to phase out when 2024 qualified asset additions exceed $3.05 million. (In 2025, these limits rise to $1.25 million and $3.13 million, respectively.) […]

Tax breaks may help offset business holiday expenses

Reporting wage and tax information to employees and the IRS

Protect your identity with an IP PIN

The IRS’s IP PIN program, which is intended to help prevent tax identity theft, is being put to new use this coming tax season. In the past, the IRS rejected e-filed returns that claimed dependents already claimed on another return. The rejected returns were required to be refiled on paper. But in 2025, taxpayers can […]

Don’t forget your RMD

Time is running out if you’re age 73 or older and haven’t yet taken this year’s required minimum distributions (RMDs) from retirement plans such as IRAs and 401(k)s. If not withdrawn on time, RMDs are generally subject to a 25% excise tax on the amount the taxpayer should have withdrawn. If you reached age 73 […]