IRS announces delay in 990-T filings

Certain tax-exempt organizations that must file Forms 990-T, Exempt Organization Business Income Tax Return, will be unable to file electronically until March 17, 2024, due to a system upgrade. This will affect certain taxpayers with filing due dates from Jan. 15, 2024, through March 15, 2024. The IRS said affected taxpayers can request a six-month […]

Does the IRS notice have you confused? Improvements are on the way.

Have you ever been perplexed when reading an IRS letter you received in the mail? You’re not alone. The IRS is attempting to simplify and clarify its letters by launching the Simple Notice Initiative. The new program will review and redesign hundreds of documents with an immediate focus on the most common notices that individual […]

IRS reminds taxpayers to answer question on digital assets

Are you properly accounting for your “digital asset-related” income? The IRS is reminding taxpayers that they must answer a digital asset question and report all digital asset-related income when they file their 2023 income tax returns. Common digital assets include convertible virtual currency and cryptocurrency, stable coins and non-fungible tokens. The question, which appears at […]

Clarification on the census tract requirement

A recent IRS notice clarifies the “census tract requirement” to quality for the alternative fuel vehicle refueling property credit. Eligible tracts must be in low-income areas in the United States or U.S. territories, based on Community Development Financial Institutions Fund data. Also eligible are tracts in nonurban areas. To identify nonurban areas, the IRS plans […]

The Tax Relief for American Families and Workers Ac

The Tax Relief for American Families and Workers Act, which was approved by the U.S. House Ways and Means Committee, makes changes to the current tax treatment of research and development (R&D) expenditures. Right now, a business must amortize such costs after Dec. 31, 2021, over a five-year period. Previously, they could be deducted in […]

Clean Energy Credits have two delivery methods

The Inflation Reduction Act created two new tax credit delivery mechanisms, elective pay (otherwise known as direct pay) and transferability. These enable state and local governments, nonprofits and other entities to claim clean energy tax credits. Using the IRS’s Energy Credits Online (ECO) tool, more than 1,000 projects have been registered. To facilitate receiving a […]

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, […]