CAMT penalty relief

The Inflation Reduction Act established a corporate alternative minimum tax (CAMT), which imposes a 15% minimum tax on the adjusted financial statement income of large corporations. The CAMT generally applies to large corporations with average annual financial statement income exceeding $1 billion. In April, the IRS waived the estimated tax penalty imposed on corporations to […]

Changing jobs? Don’t forget your 401(k)

Leaving a job? You may want to roll over funds in your former employer’s 401(k) plan to an IRA. But there’s a tax trap for the unwary. You can dodge it by arranging for a direct trustee-to-trustee transfer from the plan to your IRA. Why a direct transfer? If you receive a 401(k) plan check […]

IRS issues another scam warning

The IRS has issued a warning about the rising threat of impersonation scams targeting older adults. In these scams, criminals pretend to be government officials with the goal of stealing sensitive personal information and money. They may pose as representatives from the IRS or other agencies and try to extract information through phone calls, emails […]

ABLE accounts for disabled children

If your child is disabled, consider setting up a tax-advantaged Achieving a Better Life Experience (ABLE) account. Currently, ABLE accounts allow people who became disabled before age 26 to save money without harming their eligibility to receive Medicaid or Social Security benefits. Account owners, family members and friends can contribute to an individual’s ABLE account, […]

Did you make your estimate payment?

The second quarter estimated tax payment deadline was June 17. If you missed that deadline you should make your payment as soon as possible to minimize possible penalties. If you don’t currently make estimated payments, should you? In general, individuals should make payments if they expect to have a tax liability of $1,000 or more […]

An Overview of the Federal Tax System for 2024

The Joint Committee on Taxation has released a report titled “Overview of the Federal Tax System as in Effect for 2024” (JCX-26-24). It breaks down the current system into four main elements: 1) an income tax on individuals, estates, trusts and corporations (which consists of both a “regular” income tax and, in certain cases, an […]

IRS payment plans

The IRS is reminding taxpayers that they have options if they can’t pay their tax bills in full. The tax agency advises these individuals to file their returns by the deadline, pay what they can and explore payment options for the balances. The IRS offers short- and long-term plans. The former is offered if the […]

IRS Whistleblower Office

Taxpayers who give the IRS Whistleblower Office (WBO) information may get cash awards. To be eligible, tips must be credible, specific, relate to tax underpayments or tax law violations, and lead to collection of proceeds exceeding $2 million. One tipster submitted claims relating to seven taxpayers, alleging that each may have failed to report income […]

The IRS National Research Program

The IRS National Research Program (NRP) randomly selects tax returns for audits in order to collect information about noncompliance. To pick returns for audit, the NRP employs artificial intelligence (AI). But a recent report by the U.S. Government Accountability Office (GAO) said the process lacks transparency. One example cited is the random selection of returns […]

Tax Debt in Bankruptcy

Under certain conditions, taxpayers who file for bankruptcy may be able to discharge some federal tax debt, but not necessarily all of it. Influencing factors include the age and type of the tax debt and when the taxpayer filed tax returns. At one bankruptcy proceeding that later led to litigation, the taxpayer and IRS entered […]