The Treasury Inspector General for Tax Administration recently issued a report on IRS spending under the Inflation Reduction Act (IRA). It found the IRS has spent nearly $6.9 billion of its approximately $57.8 billion in IRA funding through the third quarter of fiscal year 2024. Notably, the IRS has used supplemental IRA funding to fund […]

For more than 70 years, the U.S. tax code allowed companies to currently deduct certain research and development (R&D) expenses. This benefitted manufacturers and businesses in other industries. However, under the Tax Cuts and Jobs Act, since 2022, companies have had to amortize R&D costs over a period of years. Specifically, R&D expenses covered under […]

If the IRS contacts you about a specific tax matter, you can authorize a third party to handle it on your behalf. It could be a relative, friend or a tax pro at our firm, as long as you grant formal permission. You can do this by assigning your power of attorney to a person […]

Americans are generous, especially when disasters strike. In the wake of the devastation caused by Hurricanes Milton and Helene, the IRS is cautioning taxpayers that this is a prime time for scammers to use fake charities to target the public. IRS Commissioner Danny Werfel warned that “Too often, criminals take advantage of would-be donors’ kindness […]

What’s new with the IRS’s Employee Retention Tax Credit (ERTC) investigations? The agency has announced that it’s currently processing approximately 400,000 ERTC claims. This batch includes eligible and ineligible claims, with the eligible claims having an estimated value of $10 billion. Those filers deemed eligible can expect to receive refund checks in the mail in […]

The “tax gap” is the difference between what the IRS estimates as the U.S. tax liability and the amount of tax that’s actually paid on time. Recently, the IRS announced its tax gap estimate for tax year (TY) 2022 is $606 billion, less than the TY 2021 estimated gap of $617 billion. A majority of […]