IRS issues 2024 mileage rates

The IRS has issued the 2024 optional cents-per-mile rates used to calculate the tax-deductible costs of operating a vehicle. Effective Jan. 1, 2024, the standard mileage rate for the business use of a car (including vans, pickups, and panel trucks) is 67 cents per mile. (This is up from 65.5 cents per mile for 2023.) […]

Cash payment reporting – When do I need to report?

Businesses must report transactions of $10,000 in cash or cash equivalents to the IRS using Form 8300. The purpose is to combat tax evasion, money laundering and more. A business that deliberately arranges transactions to bypass this threshold may be charged with illegally avoiding bank reporting requirements, also called “structuring.” In one case, a businesswoman […]

Proposal issued for middle-class housing tax credit

A proposed middle-class housing tax credit for developers could help ease the housing crunch for taxpayers who fall between low-income and those who can afford million-dollar homes. The bipartisan Workforce Housing Tax Credit Act is being discussed in the U.S. House and Senate and builds on the Low-Income Housing Tax Credit. Data from the National […]

Independent Office of Appeals Focus Guide

With the release of its 2024 Focus Guide, the IRS continues its pursuit of streamlining and modernization goals. Published by the IRS’s Independent Office of Appeals, the guide outlines several service initiatives. These include offering more accessible paperless processes, promoting certainty earlier in the dispute resolution process and extending the option of video conferences to […]

FSA contribution limits rise for 2024

If you have a flexible spending account (FSA) through your employer, know that the maximum contribution limit is rising by $150 to $3,200 in 2024. This means you can use that much more in pre-tax dollars to pay for unreimbursed medical expenses. The IRS is encouraging FSA participants to plan for next year’s health care […]

CBO reports on budget deficit

The Congressional Budget Office (CBO) has reported that the fiscal year 2023 federal budget deficit was nearly $1.7 trillion, a 23% increase ($320 billion) over 2022. According to the CBO’s final budget review, the deficit equaled 6.3% of gross domestic product (GDP), an amount greater than the 50-year average of 3.7%. And, compared with the […]

House Republicans to address three tax provisions of TCJA

House Republicans have expressed interest in year-end tax legislation that addresses what are often referred to as the “Big Three” tax provisions of the Tax Cuts and Jobs Act (TCJA). Specifically, they want to: 1) restore immediate expensing under the research credit, 2) restore the bonus depreciation amount to 100% (it’s currently 80% and drops […]

ERC claims continue to receive IRS scrutiny

It’s no secret that the IRS is aggressively seeking to disallow dubious claims for the Employee Retention Credit (ERC). That’s why new claims have been halted for now. As part of the process, the IRS is sending out more than 20,000 letters to taxpayers whose claims have been disallowed. Key reasons for disallowance include that […]

Clean Vehicle tax credit may reduce the cost of a new or used car

Taxpayers in the market for a new or used “clean” vehicle may save money up front, beginning in 2024. Those who qualify for tax credits for the purchase of a clean vehicle may be able to transfer the tax credits to an eligible dealer. In exchange, they can receive a financial benefit equal to the […]

A little known fact about wrongful incarceration

Here’s a little-known tax fact: Wrongfully incarcerated individuals aren’t required to include in federal taxable income civil damages, restitution or other monetary awards related to their wrongful incarceration. Taxpayers qualify if they’ve been convicted of a covered offense and meet one of the following: 1) They’ve been pardoned, granted clemency or granted amnesty; 2) their […]