Did you file? Alaska, Maine and Rhode Island extended deadline passes

Another filing deadline recently arrived for certain taxpayers. Monday, July 15, 2024, was the 2023 federal tax return and payment due date for individuals and businesses affected by 2024 storms in Alaska, Maine and Rhode Island. The IRS typically provides tax relief to taxpayers if the Federal Emergency Management Agency declares a disaster in their […]

US Supreme Court ruling impacts Whistleblower Claim

The U.S. Supreme Court’s recent ruling in Loper Bright Enterprises v. Raimondo, which overturned “Chevron deference,” has changed the fate of an IRS whistleblower case. An appeals court had rejected a whistleblower’s claim that he was owed an award for a tip that didn’t directly help the IRS recover funds. The court cited the IRS’s […]

TIGTA report states that the IRS needs to perform better

A Treasury Inspector General for Tax Administration (TIGTA) report states that the IRS needs to perform better in underserved markets. TIGTA said “The IRS has made improvements to increase the accessibility and availability of customer service in underserved and rural communities.” However, “additional efforts are needed to improve the geographic outreach efforts in these communities.” […]

IRS warns on clean energy tax credit scam

The IRS is warning taxpayers of a scam involving clean energy tax credits. Under the Inflation Reduction Act (IRA), taxpayers can purchase tax credits for eligible investments in clean energy to offset income tax liability. The IRS has seen an increase in Forms 1040 filed by unscrupulous tax return preparers with purchased clean energy credits […]

Is my business travel tax deductible?

Before traveling for business, it’s important to know what’s tax deductible. To qualify, travel must take a taxpayer away from home or the main place of work for business reasons, and the demands of the work must be such that the taxpayer must sleep away from home. The expense must be ordinary, necessary, not lavish […]

WBO reports on cash award to whistleblowers

Taxpayers who give the IRS Whistleblower Office (WBO) credible information about unpaid taxes may qualify for cash awards. The program has been around for a long time in some form. According to a recent WBO report, the number of awards shrank a bit in fiscal year 2023 from FY 2022, but the dollar value more […]

A reminder from the IRS concerning marijuana

The IRS is reminding the public that, for the time being, marijuana remains a Schedule 1 controlled substance. Although the U.S. Justice Dept. published a notice of proposed rulemaking with the Federal Register on May 21, 2024 to initiate formal rescheduling of marijuana, no final rule has been published. Until that happens, businesses that sell […]

IRS and US Treasury propose regulations for recapture of inaccurate COVID claims

Many businesses received financial help from the government during the pandemic, but there was also a lot of fraud. The IRS and U.S. Treasury Dept. have proposed regulations that will allow them to recapture funds that were inaccurately refunded to employers for COVID tax credits. Employers may be affected if they claimed the paid sick […]

Will some type of tax advantaged universal savings account come to the US?

Some type of universal savings account is currently available in the United Kingdom and Canada, and the concept is very popular. Could this savings vehicle be coming to the United States? The Cato Institute, in a mid-June report, urged Congress to create a universal savings account where “income saved in the account would be taxed […]

IRS issued final regulations on stock repurchase excise tax

The IRS issued final regulations on how to report and pay the 1% excise tax owed on corporate stock repurchases. The excise tax is equal to 1% of the aggregate fair market value of stock repurchased by certain corporations during the taxable year. The final regs affect publicly traded domestic corporations that repurchase their stock […]