Federal Deficit Grew to $2 Trillion in FY 2023

Federal Deficit Grew to $2 Trillion in FY 2023 https://bit.ly/3QgxYAx

IRS is focusing on improving overall experience

One area the IRS is focusing its efforts on is improving the overall taxpayer experience. To that end, the deputy chief of the IRS’s Taxpayer Experience Office, Courtney Kay-Decker, recently published an article outlining efforts “to make improvements and make progress toward the IRS goal of delivering exceptional service every day.” According to Kay-Decker, funding […]

New guidance issued on home contractor tax credit

New IRS guidance is available for a tax credit for eligible home contractors of up to $5,000 per home. Eligible contractors must construct or substantially reconstruct and rehab qualified new energy efficient homes. The credit amount varies by the type of home, the home’s energy efficiency and more. The home must be in the United […]

House Ways and Means asks for clarification on IRS’s ERC pause

Just weeks ago, the IRS halted acceptance of new claims for the Employee Retention Credit amidst fraud concerns. IRS Commissioner Danny Werfel said that a flood of ineligible claims promoted by fraudsters had led to a pause in accepting new claims and added to the processing time for claims filed. Members of the U.S. House […]

Year-end tax strategies may affect how much retirees pay for Medicare

Year-end tax strategies may affect how much retirees pay for Medicare. Here’s what to know – CNBC https://bit.ly/3tv6lef

Tax Court rules on corporaton’s rewards program

The Tax Court refused to “reward” a corporation when it failed to include customer rewards program revenue in its gross income. The IRS had determined that the taxpayer’s method of accounting was improper because it didn’t treat the program’s operating fund revenue as taxable. The corporation argued it could exclude the revenue because its use […]

IRS Tax Exempt and Government Entities Unit releases 2024 Program Letter

Compliance that’s “holistic, smarter, broader and stronger” is the hoped-for result of the IRS Tax Exempt and Government Entities (TE/GE) unit’s plan for Fiscal Year (FY) 2024. In its recently released FY 2024 Program Letter, TE/GE stressed that its priorities are aligned with those of the IRS’s FY 2023-2031 Strategic Operating Plan. That plan contains […]

TIGTA raises concerns on IRS tax liens

After the completion of an audit, the Treasury Inspector General for Tax Administration (TIGTA) is raising concerns that the IRS isn’t properly notifying taxpayers regarding tax liens. TIGTA’s annual audit reviewed IRS compliance with Notice of Federal Tax Lien (NFTL) filing and Collection Due Process (CDP) procedures. The audit examined a statistically valid sample of […]

Congress asks questions on IRS handling of ERTC

Members of Congress have questions for the IRS and Treasury Dept. on overall tax fairness and on the Employee Retention Tax Credit (ERTC). Regarding the former, Democratic senators sent a letter to Treasury Secretary Janet Yellen and IRS Commissioner Danny Werfel urging the IRS to “use its rulemaking authority to close tax loopholes that create […]

Cooperation is key forCollection Due Process hearings

Taxpayers that owe more taxes than they can currently pay can request a Collection Due Process (CDP) hearing, but cooperation with the IRS is key. One taxpayer timely filed a return but didn’t include income that was reported to the IRS by third parties. The IRS sent a notice of deficiency by certified mail to […]