4th Quarter estimate payment is due soon

As 2023 winds down, the IRS is reminding taxpayers who didn’t pay enough tax during the year to help avoid penalties by making a 4th quarter estimated tax payment by Jan. 16, 2024. Those who may need to make estimated payments include investors, gig workers and others with self-employment income. Also, it’s common for those […]

The Trust Fund Recovery Penalty is a 100% penalty

Employers that withhold taxes from employee wages but don’t pay them over to the IRS may face a penalty of 100% of the unpaid tax. The Trust Fund Recovery Penalty (TFRP) can be assessed personally against “responsible” parties. In one case, a Maryland man owned two restaurants and a property management company. For 26 months, […]

Merry Christmas

May the Christmas season bring only happiness and joy to you and your family.Merry Christmas

IRS issues proposed regulations on the Advanced Manufacturing Production Credit

The Inflation Reduction Act introduced the IRC Section 45X Advanced Manufacturing Production Credit in 2022. The credit is available to manufacturers that produce clean energy components in the United States, including solar and wind energy components, inverters, qualifying battery components, and applicable critical minerals. The IRS has issued proposed regulations that, among other things, provide […]

CAMT guidance released

The corporate alternative minimum tax (CAMT) was introduced in 2022 by the Inflation Reduction Act. The CAMT imposes a 15% minimum tax on the adjusted financial statement income (AFSI) of large corporations for taxable years beginning after Dec. 31, 2022. It generally applies to large corporations with average annual financial statement income exceeding $1 billion. […]

The IRS is updating its organizational structure

The IRS is updating its organizational chart to align with its transformation goals. Changes are being made in response to the Taxpayer First Act Report to Congress in January 2021 and the more recent IRS Strategic Operating Plan (released in April 2023). The new management structure will include a single deputy commissioner and four chief […]

Advice | IRS is waiving $1B in penalties. Beware of tax debt relief companies

Advice | IRS is waiving $1B in penalties. Beware of tax debt relief companies. – The Washington Post https://bit.ly/48suamd

What is a fraud penalty?

To err is human. But if you intentionally underpay taxes owed, the IRS may slap you with a fraud penalty. Such was the case in two recent U.S. Tax Court decisions against taxpayers. In one case (TC Memo 2023-149), the taxpayer willfully concealed partnership income to such an extent that he hired people to create […]

IRS launching compliance program for ERTC recipients

The IRS has announced that it’s planning to launch a compliance program for taxpayers who’ve received Employee Retention Tax Credit (ERTC) payments in error. The program is expected to roll out by year end. The problem of fraudulent ERTC claims has been well documented. Indeed, the IRS issued a moratorium (currently through year end) on […]

How Recent Reforms to Retirement Saving Will Impact Taxpayers in 2024 and Beyond

How Recent Reforms to Retirement Saving Will Impact Taxpayers in 2024 and Beyond https://bit.ly/3vjjsjq