Lawmakers show support of expanding disclosure of tax information

Lawmakers are showing bipartisan support for legislation that would expand disclosure of certain individuals’ tax information to third parties. Recently, the U.S. House Ways and Means Committee unanimously advanced the Strengthening State and Tribal Child Support Enforcement Act to the full chamber. A similar bill is moving through the U.S. Senate. The House version would […]

IRS updates its online taxpayer tools

The IRS continues to make progress on expanding its online taxpayer services and tools. The tax agency’s Individual Online Account tool now offers improved features, including detailed refund status updates and comprehensive audit information, among other enhancements. Specifically, the tool gives taxpayers the ability to retrieve tax-related information from one source. It also allows them […]

IRS shares new red flags on ERTC claims

To say that the Employee Retention Tax Credit (ERTC) has been troublesome for the IRS and some taxpayers is an understatement. Indeed, the IRS crackdown on ineligible ERTC claims came to light in July 2023, when the tax agency announced that it was shifting its ERTC review focus to compliance concerns. Now, the IRS has […]

IRS updates fact sheet on eligibility for clean vehicle tax credit

Under the Inflation Reduction Act, an eligible taxpayer can claim a tax credit of up to $7,500 for a new “clean vehicle.” There’s also a credit of up to $4,000 for a used clean vehicle. These are qualified plug-in electric vehicles and fuel cell vehicles. A vehicle must meet certain requirements, and there are income […]

Is it ordinary and necessary, and for profit?

Business owners can generally deduct on their tax returns the ordinary and necessary costs they incur. But they must be able to prove they’re engaged in legitimate businesses to make a profit. In one case, the U.S. Tax Court ruled a taxpayer wasn’t entitled to deduct business expenses associated with writing because she wasn’t engaged […]

Sales Tax Holidays by State, 2024

Sales Tax Holidays by State, 2024 https://bit.ly/4bY5zXB

Can Name, image and Likeness collectives obtain tax-exempt status?

In recent years, many name, image and likeness (NIL) collectives have sought tax-exempt status from the IRS. These collectives are formed for the benefit of college student-athletes and solicit and provide financial support from business “boosters.” Some of the entities may qualify as tax exempt if their mission and activities can be shown to primarily […]

Lifecycle analysis is an important part of this tax credit

The IRS has released guidance for companies that want to claim a tax credit for the sequestration of carbon oxide (a greenhouse gas emission). Although the credit has been available since 2008, the Inflation Reduction Act amended it. Notice 2024-60 (https://bit.ly/3zWt6uW ) explains what information taxpayers should include in written lifecycle analysis (LCA) reports submitted […]

Record maintenance is critical to success

When it comes to running a successful small business, there are numerous tasks owners must perform. One important job is to maintain tax and financial records. Granted, this can be overlooked in the day-to-day grind of running a business, but it’s vital when it comes time to prepare and file financial statements and tax returns. […]

Are changes coming to Form 990 reporting?

Tax-exempt organizations are coming under increased scrutiny by members of the House Ways and Means Committee. Lawmakers are looking to boost transparency around tax-exempt organizations’ activities and funding mechanisms. There are also calls to revise Form 990 and proceed on legislation that limits 501(c)(3) status. Rep. David Schweikert (R-AZ) remarked at a recent meeting, “17% […]