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 […]

Why Your Tax Refund Is Nothing to Celebrate

Why Your Tax Refund Is Nothing to Celebrate https://bit.ly/49JTzJd

Innocent Spouse relief granted

When spouses file a joint federal tax return, both are generally liable for the tax owed. If eligible, joint filers may seek “innocent spouse” relief that shields them from liability. In one case, it was undisputed that a married couple’s joint tax return included an understatement. The IRS and the wife agreed that she didn’t […]

High Income non-filers are now receiving IRS attention

In its efforts to raise tax compliance among certain high-income individuals, the IRS recently reached out by mail. Letters went to 125,000 taxpayers with incomes between $400,000 and $1,000,000, who haven’t filed tax returns since 2017. In all cases, the IRS received third-party information, such as Forms W-2 and 1099s, showing income. In a statement, […]

Do you qualify for a premium tax credit?

Filing an accurate tax return can require higher-than-usual attention to detail and it’s relatively easy to miss something. Case in point: The IRS reports it has received and is rejecting an increased number of electronically filed 2023 returns that claim the premium tax credit (PTC). That’s because taxpayers neglected to attach the supporting Form 8962. […]

The use of AI in fraud investigations

Artificial intelligence (AI) has quickly become critical to many types of fraud investigations, including those of the U.S. government. The U.S. Treasury Department’s Office of Payment Integrity (OPI) has announced it recovered more than $375 million in fiscal year 2023 using AI. OPI currently is focusing on check fraud, which has increased 385% since the […]