Disaster Tax relief announced for Massachesetts and Maine

Portions of Massachusetts and Maine have been declared federal disaster areas following the landfall of Hurricane Lee on Sept. 15, 2023. Residents and businesses in the affected counties may qualify for tax relief. The IRS has extended most filing deadlines falling on or after Sept. 15, 2023, and before Feb. 15, 2024, to Feb. 15, […]

IRS expands use of chatbot AI

The IRS is expanding its use of chatbot technology. The agency has used chatbot features since early 2022 to help more than 13 million taxpayers avoid wait times by resolving their tax issues, including setting up roughly $151 million in payment agreements. The IRS will now employ a chatbot technology to help answer basic questions […]

Can I deduct my equipment purchase?

Taxpayers who purchase assets for business use may be eligible to deduct the full cost in the year of purchase, subject to Section 179 limits. A taxpayer must prove the asset’s cost, where and when it was purchased, and the percentage of business use. Only the percentage of cost that applies to business use may […]

Failure to comply results in revocation of tax exempt status

Tax-exempt agencies enjoy favorable federal tax status, but they must guard it. Failure to comply with tax law and IRS regulations could result in loss of that status. Recently, in Letter Rulings 202338007-202338026, the IRS revoked the tax-exempt status of 20 agencies. These agencies failed to respond to repeated requests from IRS examiners to review […]

Alternative dispute resolution programs

In a Sept. 15, 2023, letter to the IRS, the American Bar Association (ABA) offered several suggestions for improving alternative dispute resolution (ADR) programs. In general, ADR is a set of mediation options available to taxpayers who have unresolved issues or disputes with the IRS. Among other things, the ABA recommended that the IRS improve […]

IRS establishes new group to focus on Large or complex pass-through entities

The IRS is continuing to focus on high-income taxpayer compliance issues. To that end, it has announced plans to establish a new work group that focuses on large or complex pass-through entities, such as partnerships and S corporations. These entities aren’t subject to the corporate income tax. Instead, income is “passed through” to the income […]

IRS granted extension to meet electronic recordkeeping

An Office of Management and Budget / National Archives and Records Administration directive requires all federal agencies to adopt electronic recordkeeping by June 30, 2024. According to a Treasury Inspector General for Tax Administration (TIGTA) audit, the IRS won’t be able to meet the deadline. “Due to delayed efforts to digitalize records, the IRS was […]

Extension Deadline 2023

Extension Deadline 2023 https://bit.ly/48uI4Fh

Survey focuses on Public Trust of tax systems

Distrust in tax authorities and governments is a global problem, according to a 2023 survey conducted by the Assoc. of Chartered Certified Accountants. The survey included responses of 7,700 members of the G20 intergovernmental forum. Of those, 67.8% agreed that paying taxes is needed for “sustainable development,” but 53.8% said that their attitudes toward tax […]

Do you owe past due taxes?

Taxpayers that owe more taxes than they can currently pay can request a Collection Due Process (CDP) hearing, but they must follow instructions. One successful rapper owed past-due taxes of $2,319,678 on which he made monthly payments. When his income fell, he requested a CDP hearing to reduce the payments. At the hearing, he was […]