Giving Generously? Make Sure Your Charity Still Qualifies

Many Americans donate to charities they wish to support. If donors itemize deductions, they may also enjoy a tax break. But if a nonprofit violates tax laws or regulations, the IRS may revoke its tax-exempt status and remove it from the list of charities qualified to receive tax-deductible contributions. Suppose you’ve donated to a qualified […]

Emotional Distress = Taxable Income, Says Tax Court

For federal tax purposes, proceeds from legal settlements are generally included in taxable income unless specifically excluded by law, such as those for personal physical injuries or sickness. One taxpayer received $135,000 from her former employer to resolve claims of sexual harassment and discrimination. She didn’t report it on her tax return. After receiving an […]

Lawmakers Push for Clearer Tax Rules on Crypto

Members of the U.S. Senate Finance Committee recently met to discuss ongoing issues with the federal tax treatment of digital assets. Both Republicans and Democrats on the committee essentially agreed that the tax rules are confusing and could use improvement. One of the hearing’s witnesses asserted that the “tax code still treats digital assets as […]

IRS Operations at Risk Amid Government Shutdown

The IRS’s contingency plan called for it to remain open and fully staffed (funded by Inflation Reduction Act money) for at least the first five business days of the current federal government shutdown. However, the plan updated on Sept. 29, 2025 (https://bit.ly/4o6alcc), didn’t specify what would happen after that. According to Bloomberg, if the government […]

IRS Dispute? Mediation Might Be the Easier Path

Taxpayers involved in a dispute with the IRS may want to consider using one of the IRS’s alternative dispute resolution (ADR) mediation programs. These programs can help taxpayers efficiently resolve tax issues with the IRS. Taxpayers for whom mediation can be a good option include those who don’t have many disputed issues or who’re seeking […]

EV Tax Credit Still Available — But Only for Leases, Thanks to a Loophole

The cutoff date for purchasing or leasing a new electric vehicle (EV) to take advantage of the $7,500 EV tax credit was Sept. 30, 2025. But General Motors (GM) and Ford have found a workaround to extend the credit into the fourth quarter. In a nutshell, GM and Ford had their financing arms make down […]

Denied by the IRS: What One Taxpayer’s Case Teaches About Payment Plans

Taxpayers who owe more taxes than they can pay have options, which include payment plans, but compliance is key. If repayment will take more than 180 days, a taxpayer may seek an installment agreement with the IRS. Interest and penalties still apply. To qualify for an agreement, the taxpayer must be current with estimated tax […]

Tax Extension Deadline: File by October 15!

The deadline to file an individual extended federal income tax return for 2024 is coming soon, on Wednesday, Oct. 15. If you still need to file, you should gather Social Security numbers for everyone on your return; bank account and routing numbers for direct deposit; any Forms W-2 and 1099; records related to any virtual […]

Real Estate Professionals Get More Time to Comply with FinCEN Rule

The Anti-Money Laundering Regulations for Residential Real Estate Transfers Rule (RRE Rule) was first published in 2024 and is intended to help fight money laundering. It requires real estate professionals to report certain information to the Financial Crimes Enforcement Network (FinCEN) and was originally scheduled to become effective Dec. 1, 2025. But on Sept. 30, […]

Oct. 15 Tax Deadline: Last Chance for 2024 Retirement Plan Contributions

Do you own a business (or are you self-employed) and have you extended your 2024 income tax return to Oct. 15, 2025? You may still be able to reduce your 2024 tax liability by setting up a retirement plan and making deductible contributions by Oct. 15. Keep in mind that, if you have employees who […]