How does the ACA premium tax credit impact the deficit?

Republican members of the House Ways and Means Committee have asked the Congressional Budget Office and the Joint Committee on Taxation how making the Affordable Care Act’s premium tax credit permanent would affect the deficit and health care costs in general. The lawmakers are requesting the “budgetary effects on outlays, revenues and the deficit.” The […]

The Federal Disaster Tax Relief Act

The U.S. House of Representatives has passed the Federal Disaster Tax Relief Act by a vote of 382 to 7. The legislation is a standalone bill carved out from the broader Tax Relief for American Families and Workers Act, which passed the House last January but has stalled in the U.S. Senate. Among other things, […]

Revocation of tax-exempt status?

The IRS regularly revokes the tax-exempt status of nonprofit organizations that violate its rules. Such revocations often carry dire consequences because itemizing donors may no longer claim tax deductions for their gifts. This can, in turn, dramatically reduce donations. To help protect your nonprofit from losing its exempt status, follow all applicable IRS rules. For […]

In the courts; US Tax Court finds donor not liable for gift tax

In a new U.S. Tax Court decision, a donor’s estate wasn’t liable for gift tax after the termination of a qualified terminable interest property (QTIP) trust and distribution of its assets. The QTIP owner’s widow funded it with closely held corporation shares. When she later terminated the trust, she received the assets and transferred stock […]

Is my Scholarship tax-free?

If a student receives a scholarship or grant, all or part of the amounts received may be tax-free. Scholarships and grants are tax-free if certain conditions are met. In two new Private Letter Rulings, the IRS approved two private foundations’ procedures for awarding scholarships and grants. The awards were made on a nondiscriminatory basis and […]

Are taxes too high?

Are taxes too high? In a survey taken earlier this year, roughly two-thirds of people said “yes” when asked about federal, state sales and local property taxes. The survey was taken by the University of Chicago Harris School of Public Policy and the AP-NORC Center for Public Affairs Research. Only about one-quarter of those polled […]

Beneficial Owner Reporting

Under the Corporate Transparency Act (CTA), certain companies are required to provide information related to their “beneficial owners” (the individuals who ultimately own or control the company) to the Financial Crimes Enforcement Network. Failure to do so may result in civil or criminal penalties, or both. In late March, a U.S. District Court ruled that […]

An update on the American Families and Workers Act

The Tax Relief for American Families and Workers Act has been stalled in the Senate since January. (It passed the House of Representatives by a vote of 357-70.) In recent remarks at a Tax Council Policy Institute meeting, Senator Ron Wyden (D-OR), Chair of the Senate Finance Committee, said Senate Republicans are inclined to wait […]

Cost of Fraud rising

The cost of business fraud is ramping up, said the Assoc. of Certified Fraud Examiners (ACFE). In its biannual report, the ACFE said the median fraud loss per incident rose in the last two years from $117,000 to $145,000. The good news is, more businesses have adopted fraud detection and prevention measures. The top methods […]

Thinking of giving to a political campaign?

As this election year heats up, many of us want to financially support our candidates, but limits apply. Here are a few pointers from the Federal Election Commission (FEC): contributions to federal elections aren’t tax deductible. In 2024, individuals can donate up to $3,300 per federal election to a candidate committee (but cash contributions are […]