IRS error causes improper balance due notices

The IRS is acknowledging that some taxpayers have erroneously received CP14 (Balance Due, No Math Error) notices. Affected taxpayers include those who made electronic or check payments with their 2023 tax returns. CP14 notices may indicate that a taxpayer’s account is “pending,” even if a payment has been received and processed. The IRS has explained […]

Green Energy tax credits

Employers that want to claim “green energy” tax credits made available by the Inflation Reduction Act, take note: The IRS is releasing final regulations and guidance about prevailing wage and apprenticeship (PWA) requirements. In general, businesses must comply with the PWA tests if a worker performs construction, alteration or repair of a qualified facility. However, […]

Educational assistance benefits

Did you know that you can exclude certain educational assistance benefits from your gross income if they’re provided under Section 127 educational assistance programs? Educational assistance benefits include payments for tuition, fees, books, supplies and equipment. They also include certain principal or interest payments on qualified education loans made by employers. Generally, taxpayers don’t have […]

Basis Shifting

The IRS has issued guidance addressing the increasing instances of abusive basis shifting by related-party partnerships. Taxpayers are inappropriately using partnership rules to inflate the basis of underlying assets without affecting the economics of their businesses. The basis-shifting transactions targeted in Notice 2024-54 fall into three groups: 1) transfer of partnership interests to a related […]

Is it a hobby or a business?

Do you or someone you know have a side hustle? As a rising number of Americans earn side income, the IRS is reminding taxpayers that money earned this way is taxable. Depending on whether the IRS considers the activity to be a hobby or a business, the tax treatment is very different. Businesses can generally […]

IRS focus on high income compliance continues

The IRS is continuing its focus on compliance issues among some high-income earners, including partnerships. With funding from the Inflation Reduction Act (IRA), the agency is developing guidance designed to close loopholes used by some partnerships. Currently, the IRS is looking at tens of billions of dollars of deductions claimed by partnerships, with a focus […]

Historic Preservation Tax Incentives

One of the lesser-known tax breaks available to qualified businesses and individuals is the rehabilitation credit. If you own (or in some cases, lease) a historically important building and renovate it, you may be able to claim a 20% credit of eligible rehabilitation costs. Covered expenses include those for renovation, restoration and rehabilitation, but not […]

New FTC rule aims to protect individuals from fraud

Recently, a new Federal Trade Commission (FTC) rule went into effect to better protect individuals from fraud, particularly impersonation scams. For example, the rule makes it easier for the FTC to file federal court cases to recover funds for victims and impose penalties on perpetrators. According to the FTC, consumer losses to fraudsters falsely claiming […]

IRS will deny most claims for Employee Retention Credit program

IRS will deny most claims for Employee Retention Credit program – The Washington Post https://bit.ly/3zdo4tx

I.R.S. Extends Freeze of Pandemic-Era Tax Credit Amid Widespread Fraud

I.R.S. Extends Freeze of Pandemic-Era Tax Credit Amid Widespread Fraud – The New York Times https://bit.ly/3xiAEat