The Child Tax Credit

If Democratic members on the House Ways and Means Committee had their way, enhancements to the Child Tax Credit (CTC) in the proposed Tax Relief for American Families and Workers Act would have been more expansive. In its current form, the bill increases the maximum “refundable” CTC (the amount you can get as a refund […]

Collection Due Process hearings

Taxpayers that owe more taxes than they can currently pay may request a Collection Due Process (CDP) hearing if they follow the rules. Possible assistance may include an installment plan, penalty relief and innocent spouse relief. One taxpayer was granted a CDP hearing on his 2022 tax return but was denied an installment plan and […]

House Ways and Means pushes bill with tax relief goals

The U.S. House Ways and Means Committee is continuing to move forward a wide-ranging tax package. The proposed Tax Relief for American Families and Workers Act extends some expired tax breaks for businesses and contains enhancements to the Child Tax Credit. It also has a provision that would reduce paperwork for some businesses. Currently, businesses […]

Taxpayer Bill of Rights

As the 2024 tax season approaches, taxpayers should know they’re protected by a Taxpayer Bill of Rights. It provides the right to: 1) be informed, 2) quality service, 3) pay no more than the correct amount of tax, 4) challenge the IRS’s position and be heard, 5) appeal an IRS decision in an independent forum, […]

IRS reports on collections

The IRS reports that it has collected $482 million in its ongoing efforts to recoup taxes owed by 1,600 millionaires. This is part of the agency’s initiative to expand investigation of tax abuse by complex partnerships, large corporations and high-income taxpayers. The IRS is working “to reverse the historic low audit rates and limited focus […]

When do I report the receipt of a Digital Asset?

The IRS is informing businesses that they don’t have to report the receipt of digital assets the same way they report the receipt of cash until the IRS issues final regulations. The Infrastructure Investment and Jobs Act (IIJA) revised the rules requiring taxpayers engaged in a trade or business to report receiving cash of more […]

The Tax Relief for American Families and Workers Act

Senate Finance Committee Chair Ron Wyden (D-OR) and House Ways and Means Committee Chair Jason Smith (R-MO) have announced a $78 billion bipartisan bill dubbed the Tax Relief for American Families and Workers Act. It includes several tax-related changes. For example, it would temporarily expand the Child Tax Credit and enable more taxpayers to benefit […]

IRS has started simplifying millions of complicated taxpayer notices ahead of the filing season

IRS has started simplifying millions of complicated taxpayer notices ahead of the filing season – CNBC https://bit.ly/3UaNuk2

It is ordinary and necessary?

Business owners can generally deduct ordinary and necessary costs of doing business if they can prove them. One man faced a slew of issues including claims for business deductions such as rent, insurance and utilities, supported only by bank records and profit and loss statements. The IRS called these documents unreliable and insufficient. He also […]

Pension-linked emergency savings accounts

With the arrival of 2024, employers can opt to offer their employees pension-linked emergency savings accounts (PLESAs). Authorized by the SECURE 2.0 Act, these are individual accounts within a defined benefit plan, though participation in the defined benefit plan isn’t required. PLESAs are designed to encourage saving for emergencies, with a maximum balance of $2,500, […]