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 […]

Living abroad?

U.S. citizens and resident aliens living abroad may have tax obligations, and there’s still time to file 2023 tax returns. For these individuals, worldwide income (including wages, unearned income and tips) is subject to U.S. income tax, regardless of where they live or earn income. They also have filing requirements. Taxpayers have an automatic two-month […]

Innocent Spouse Relief

A married couple filing a joint tax return makes the spouses “jointly and severally” liable for the entire tax due. A joint filer may seek “innocent spouse” relief to avoid liability. In one case, an ex-wife was denied relief. She and her ex-husband managed rental properties. The tax deficiency arose from sources including unreported cancellation […]

IRS warns taxpayers they may be a scam victim

The IRS is reporting that this tax season it’s seeing an uptick of inflated refund claims centered around the Fuel Tax Credit, the Sick and Family Leave Credit, and household employment taxes. It stated that a series of tax scams and inaccurate social media advice has led to thousands of taxpayers claiming credits for which […]

Extending expiring provisions in the TCJA would increase deficit

Most of the individual income tax provisions in the Tax Cuts and Jobs Act (TCJA) are slated to expire at the end of 2025. The estimated cost of extending expiring tax provisions, including those under the TCJA, for the next 10 years would add nearly $4.6 trillion to the federal budget deficit, according to the […]