IRS asks for feedback

The IRS wants to hear your thoughts about improving certain federal tax processes! The agency is calling on taxpayers to submit ideas for its 2024–2025 Priority Guidance Plan. The plan will identify regulations, revenue rulings, notices and other guidance the IRS intends to provide from July 1, 2024, through June 30, 2025. In evaluating submissions, […]

General health care is not medical care

Do you have a health flexible spending account, health savings account or similar plan through your employer? The IRS is warning about misinformation that could lead to serious mistakes. Non-medical nutrition, wellness and exercise expenses that aren’t explicitly related to a medical diagnosis or treatment aren’t deductible or reimbursable under these plans. That hasn’t stopped […]

Proposal for new homebuyer credit

One proposal in President Biden’s State of the Union address was to help potential homebuyers and current homeowners. Biden proposed a $10,000 mortgage relief tax credit for first-time homebuyers. It would provide a $5,000 credit for two years. He also proposed a one-year credit of up to $10,000 to middle-class families who sell their starter […]

Tax Proposals in the State of the Union address

In the State of the Union address, President Biden announced several tax-related proposals. In a nutshell, he vowed to raise taxes on the wealthiest Americans, increase the corporate minimum tax, cut executive pay tax deductions and curb corporate jet tax breaks. Specifically, Biden renewed his call for a “billionaire” tax. It would impose a 25% […]

TIGTA reports on IRS protection of taxpayer data

Is the IRS properly protecting sensitive taxpayer data? That’s the subject of a recent report by the Treasury Inspector General for Tax Administration (TIGTA), based on a request from Congress. The report looked at a “massive leak” of data in June 2021 that allowed a media outlet to obtain a “vast trove” of more than […]

What’s my status?

When it comes to tax filing, the correct status to claim isn’t always obvious. Suppose the parents of a young child live together but were never married. Both contribute to the cost of maintaining a household and caring for the child. Are both able to claim the favorable head of household (HOH) status? The answer […]

House advances resolution rejecting SEC Bulletin

The U.S. House Financial Services Committee has advanced a resolution that rejects SEC Staff Accounting Bulletin (SAB) 121, which was issued to help account for crypto assets in SEC custody. The guidance instructs registered entities responsible for safeguarding crypto assets to include a liability and corresponding asset on their balance sheets. But many legislators and […]

IRS has issued final regulations for manufacturing investment tax credit

The IRS has issued final regulations for manufacturers eligible to make the elective payment election of the advanced manufacturing investment tax credit. This credit was created in 2022 by the CHIPS Act and is intended to incentivize companies to make semiconductors and semiconductor equipment in the United States. The final regulations describe procedures for making […]

Deadline to claim Recovery Rebate Credit nears

The Recovery Rebate Credit is a refundable tax credit for individuals who missed out on one or more Economic Impact Payments. These were initially issued in 2020 and 2021 to provide relief during the pandemic. Some individuals and families remain eligible for the payments. However, taxpayers must file tax returns to make claims, even if […]

Myths versus facts for 1099-K forms

Third-party settlement services are popular because of how convenient they are to use. These services include payment apps, such as Venmo, and online marketplaces, such as eBay. However, if you cross certain transaction thresholds, you may receive Form 1099-K, Payment Card and Third Party Network Transactions. Late last year, the IRS delayed enforcing a $600 […]