Deductible medical Expenses?

If you’ve incurred medical expenses this year, you may qualify for a tax deduction. Taxpayers can deduct the amount of unreimbursed medical expenses that exceeds 7.5% of their adjusted gross income. To qualify for the deduction, the expenses must be paid specifically for medical or dental services, prescription drugs, insulin, medical equipment and supplies, medical […]

The Self Employment Tax Credit

You’ve probably never heard of the “Self Employment Tax Credit.” That’s because it doesn’t exist! However, unscrupulous promoters on social media are peddling the nonexistent credit as a way for self-employed people and gig workers to receive big payments related to the COVID-19 pandemic. In reality, the underlying limited and technical credits referenced in these […]

Ransomware attack on car dealers

Recently, there was a ransomware attack aimed at car dealers. As a result, the IRS is warning individuals and businesses selling cars about evolving phishing and smishing scams. Scammers relentlessly pursue the sensitive financial and personal data of individuals, which they may use to steal identities or assets or install malicious software on victims’ computers. […]

Should i convert to a Roth IRA?

If you expect the tax rates you pay to rise, you may be able to proactively avoid higher taxes on retirement funds by converting a traditional IRA to a Roth account. This may be a smart tax move but be aware that there’s a current cost. That is, a conversion is treated as a taxable […]

No plans to extend BOI reporting deadline

Recently, several members of the U.S. House Financial Services Committee claimed that many small business owners weren’t aware of the Beneficial Ownership Information (BOI) reporting deadline. They are, according to these members, vulnerable to noncompliance penalties. However, U.S. Treasury Secretary Janet Yellen responded that there are no plans to extend the regulation’s compliance deadline. This means […]

Fact sheet released on clean fuel production credit

The IRS has released a new fact sheet (https://bit.ly/3XUv7BN ) to help businesses that produce clean transportation fuel apply for registration for the clean fuel production credit. The fact sheet clarifies such issues as which entities must apply for registration and what actions disregarded entities should take. This credit (under Code Sec. 45Z) was made […]

Bill Introduced to extend and enhance Paid Family and Medical Leave Credit

In the U.S. House of Representatives, a bill was recently introduced that would extend and enhance the Paid Family and Medical Leave Credit (under IRC Section 45S). The bill proposes, among other things, to expand eligibility by reducing the minimum employment period for qualifying employees from one year to six months. The bill has broad […]

IRS reports collections from High-Income taxpayers

Through an expanded enforcement initiative launched last year, the IRS reports it has collected more than $1 billion in past-due taxes from “high-income, high-wealth” individuals. As part of larger efforts taking place, the tax agency stepped up activity on 1,600 individuals whose incomes were more than $1 million per year and who each owed more […]

Don’t ignore notices from the IRS

Ignoring the IRS doesn’t make it go away. While the tax agency is generally willing to work with taxpayers who dispute their tax bills or need more time to pay, cooperation is key. In one case, the owner of a boat and RV storage facility owed unpaid federal income and self-employment taxes, as well as […]

Another scam warning from the IRS

The IRS continues to warn the public about tax-related scams and myths making the rounds on social media. The scams involve the Fuel Tax Credit, a COVID-19-related employer credit for employees taking sick and family leave during the pandemic, household employment taxes and overstated withholding. These scams are aimed at helping taxpayers use false and […]