Do I qualify for a cash award?

Taxpayers who give the IRS Whistleblower Office (WBO) information about unpaid taxes may qualify for cash awards. To be eligible, tips must be credible and specific, relate to tax underpayments or violations of tax laws and be used to collect proceeds. One individual submitted a claim that targeted taxpayers based on 36 broad categories of […]

What should I do if I receive a refund, but it’s wrong?

Mistakes happen. What if you receive a refund from the IRS that you’re not entitled to? Or what if you receive one that’s more than you’re entitled to? How you must handle it depends on details. A paper check refund should be voided and returned within 21 days of receipt to the address in the […]

What’s happening in the courts?

In one recent federal court case, a nonresident alien taxpayer claimed deductions from taxable income for multiple personal exemptions. The IRS denied them. The taxpayer argued in court that the Tax Cuts and Jobs Act had made everyone other than nonresident aliens ineligible for several personal exemptions. Not surprisingly, the court disagreed with this interpretation […]

Introduction to Tax Forms for Gig Economy Workers

Are you one of millions of Americans who participate in the gig economy? If so, the IRS considers you an independent contractor. Essentially, you’re a solo business owner, which ushers in a unique set of tax rules and obligations. A recent post in the National Tax Advocate blog examines some of the essential tax issues […]

Deadline to return ERTC funds fast approaching

Earlier this year, the IRS launched a voluntary disclosure program involving the Employee Retention Tax Credit (ERTC). It allows eligible businesses to pay back money they received after filing ERTC claims in error. The disclosure program runs through March 22, 2024, and allows employers to repay 80% of the money received. With the deadline to […]

What do I do if I donate a car to charity?

Donating a car to your favorite charity helps the organization and may give you a nice tax deduction. But you must itemize deductions and follow the rules. For a car worth at least $250 but not more than $500, you need a written acknowledgment letter from the charity with certain details. You must have this […]

Did you Gamble and win?

Did you bet money on the Super Bowl? If so, you aren’t alone. The American Gaming Association estimated that a record $23.1 billion would be wagered on Super Bowl 58. If you won, congratulations! Not to rain on your parade, but Uncle Sam generally wants his share. The rules apply even to “casual gamblers” who […]

Phase 2 of the IRS Pre-Examination Retirement Plan Compliance Program

The IRS is beginning phase two of its Pre-Examination Retirement Plan Compliance Program. The overall project is intended to reduce taxpayer burden, minimize IRS time spent auditing plans and encourage plan sponsors to self-correct. Sponsors currently chosen for participation will receive a letter urging them to review their plan documents and operations for tax law […]

The new or used clean vehicle tax credit

If you’re in the market for an electric vehicle and hope to qualify for the new or used clean vehicle tax credit, take note: Deadlines for submitting seller reports to the IRS have been extended. Your seller is required to submit a report to the IRS Energy Credits portal by a specified deadline and provide […]

IRS updates on the health insurance premium tax credit

Just in time for tax filing season, the IRS has made several updates to (and added several new) FAQs related to the health insurance premium tax credit. This refundable credit is designed to help eligible individuals and families with low or moderate income afford health insurance purchased through the Health Insurance Marketplace. The size of […]