National Tax Security Awareness Week

National Tax Security Awareness Week is here. As part of an effort to help reduce identity theft, the IRS and its partners will sponsor a week of press releases, social media posts and other communications. The week runs from Nov. 27 to Dec. 1, and is timed to make people aware of fraud threats during […]

IRS announces delay in the $600 1099-K reporting threshold

The IRS has announced a delay in releasing the $600 Form 1099-K reporting threshold for third-party settlement organizations. Calendar year 2023 will now be considered a transition year and third parties (including payment apps and online marketplaces) won’t be required to report transactions unless a taxpayer receives more than $20,000 and has more than 200 […]

US House members push back against proposed digital asset regulations

In a letter, a bipartisan group of U.S. House of Representatives members urged the U.S. Dept. of Treasury to revise proposed digital asset reporting regs released last August. The letter said the proposed regs “would inhibit innovation and harm the digital asset ecosystem, if finalized in its current form.” The proposed regs’ definitions of “broker” […]

There is still time to claim the Recovery Rebate Credit

You may be surprised to learn that there’s still time for certain individuals to claim the Recovery Rebate Credit. Specifically, eligible 2020 and 2021 nonfilers have until May 17, 2024, and April 15, 2025, respectively, to file a claim. The Recovery Rebate Credit is a refundable credit for individuals who missed out on one or […]

Opportunities to reduce the Tax Gap

Efforts to close the $496 billion “tax gap” continue to make news. The tax gap is defined as the difference between federal income tax owed and the amount timely paid. One of the largest segments of the gap (16% of the total) is underreporting by sole proprietors, according to a report by the Government Accountability […]

QCDs can be used to satisfy IRA RMD requirements

Eligible IRA owners who are charitably inclined may be able to achieve two goals at once. Using a transfer known as a qualified charitable distribution (QCD), taxpayers who are at least 70½ can transfer up to $100,000 per year to a 501(c)(3) tax-free. Married couples where both spouses meet the age requirement and have IRAs […]

Tax relief for federally declared disaster areas

The IRS announced tax relief for dozens of federally declared disaster areas in 2023. If you live or work in one of those areas, you generally can deduct related losses on your 2023 return. As an alternative, you can deduct losses on the preceding year’s return. If you choose the latter option and have already […]

GAO report criticizes IRS

A recent Government Accountability Office (GAO) report criticizes some of the IRS’s handling of W-2 forms, 1099s and other information returns (IRs). The IRS uses IRs to verify taxpayers’ income and uncover fraud and noncompliance. The GAO report affirms that IRs are critical to ensuring correct tax payments. But it states that the IRS lacks […]

IRS updates ERC issues

Last September, the IRS issued a moratorium (currently through year end) on the processing of claims for the Employee Retention Tax Credit (ERTC), due to a high volume of fraudulent claims. IRS Commissioner Danny Werfel recently said the agency is continuing to develop processes to help taxpayers that may have fallen for deceptive marketing that […]

The annual gift tax exclusion

One of the most effective estate-tax-saving techniques is also one of the simplest: making use of the annual gift tax exclusion. It allows you to give to an unlimited number of family or friends cash or property valued up to a “specified” amount each year without owing gift tax. That “specified” amount is subject to […]