Captive Insurance Company loses in Tax Court

When businesses owned by a married couple supplemented traditional insurance with “microcaptive” policies from companies the husband controlled, the IRS called foul. The tax agency said these policies were used to claim deductions and avoid paying tax. The Tax Court agreed. It ruled, among other things, that the taxpayers failed to show their captive policies […]

Requirements for Clean Vehicle Tax Credits

For an electric vehicle to qualify for the clean vehicle tax credit (IRC Sec. 30D), it must meet certain requirements. The maximum credit is $7,500. A vehicle that meets the requirements for critical materials may qualify for a $3,750 credit. A vehicle that meets requirements for battery components may qualify for a $3,750 credit. At […]

The SALT Marriage Penalty Elimination Act

Coming on the heels of its recent passage of the proposed Tax Relief for American Families and Workers Act, the U.S. House of Representatives may soon vote on another tax-related bill, the SALT Marriage Penalty Elimination Act. It addresses the state and local tax (SALT) deduction, which was capped at $10,000 by the Tax Cuts […]

Deadline is tomorrow

The IRS is reminding certain disaster victims of a fast-approaching deadline on Feb.15, 2024. Those affected by federally declared disasters that occurred in 2023 between Aug. 8 and Oct. 9 were granted extra time to file their 2022 tax returns, but not extra time to pay taxes due. Among those disasters were Hurricane Lee, Hurricane […]

The Tax Relief for American Families and Workers Act

On Jan. 31, the U.S. House of Representatives passed a bipartisan tax package. The Tax Relief for American Families and Workers Act of 2024 contains enhancements to the Child Tax Credit (CTC) and would restore some tax breaks for businesses. Specifically, it would expand CTC eligibility for some low-income families. It would also bring back […]

A reminder from the IRS

It’s easy to overlook smaller amounts of income when it’s time to prepare your tax return. Taxpayers must generally include all income, not just the amount they find on an employer-generated W-2 form. For example, did you make goods and sell them on an online marketplace or at a crafts fair? Did you provide and […]

IRS Commissioner reminds tax professionals of possible changes coming

In a recent speech, IRS Commissioner Daniel Werfel suggested that tax professionals may need to stay on their toes during the 2024 tax season. If the Tax Relief for American Families and Workers Act of 2024 passes soon, new rules for the Child Tax Credit could go into effect starting with the 2023 tax year. […]

An update on the global minimum tax

The Organization for Economic Co-operation and Development (OECD) has issued an assessment of the effects thus far of the 15% global minimum tax (GMT). The report says that the GMT levied on large multinational enterprises (MNEs) under Pillar Two of the OECD framework has disincentivized the practice of profit shifting as intended. The GMT is […]

IRS launches outreach program for Earned Income tax credit

The IRS has launched an outreach campaign designed to help low- to moderate-income taxpayers learn about the earned income tax credit (EITC). The IRS estimates that about one in five EITC-eligible taxpayers don’t claim it. To qualify for the credit, an individual must be employed, file a tax return and have a valid Social Security […]

This costly withholding mistake is ‘always a surprise,’ tax pro says

This costly withholding mistake is ‘always a surprise,’ tax pro says – CNBC https://bit.ly/3UvVI6o