IRS can use bank deposit analysis to determine income

If the IRS suspects a taxpayer isn’t reporting all income, it may conduct a “bank deposits analysis” to compare deposits with what was reported on a tax return. In one case, the IRS found that a taxpayer had unreported income after conducting a bank deposits analysis. When notified of the unreported income by the IRS, […]

An Update on the ERC program

Recently, the IRS halted processing of claims for the Employee Retention Credit (ERC), due to a high volume of fraudulent claims. The moratorium is through at least the end of 2023. ERC claims that were already filed are now subject to longer processing, including heightened scrutiny to weed out fraud. The IRS is creating a […]

Timing bonuses for a tax deduction

Businesses planning to pay employees year-end bonuses can time their payments to reduce tax. For example, if your business operates on the cash basis, you must deduct bonuses in the year they’re paid. So you could pay bonuses either in late 2023 or early 2024, whichever makes the most tax sense. Accrual-basis businesses must pay […]

EV tax credits

For many car buyers, new electric vehicles (EVs) are priced out of reach, even when tax credits are applied. But it still may be possible to buy an affordable EV and qualify for a credit. Previously owned EVs and fuel cell vehicles purchased from a licensed dealer on or after Jan. 1, 2023, for $25,000 […]

What is your marital status?

Major life changes can greatly affect your tax situation. This is especially true if you get married or divorced. If you experienced one of these events, be sure to address it with your tax advisor as part of your year-end tax planning. Indeed, your marital status for the entire year is determined as of Dec. […]

Year-end tax planning season is here

Year-end tax planning season is here. The up-and-down financial markets this year may provide you the opportunity to harvest your losses. This tried-and-true tax strategy may be an option if you’ve realized adjusted net capital gains and are now facing a high tax bill as a result. To soften the tax blow, review your portfolio […]

IRS grants tax relief for most California residents and businesses

The IRS has granted most California residents and businesses extra time to file their 2022 taxes and pay any tax due. During the past year, 55 of California’s 58 counties have been declared federal disaster areas. Indeed, all counties except Lassen, Modoc and Shasta qualify for the tax filing relief. Affected taxpayers now have an […]

FinCEN announces filing relief for taxpayers affected by events in Israel

The U.S. Dept. of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has announced filing relief for taxpayers affected by the terrorist attacks in Israel. Certain taxpayers must annually report their foreign financial accounts to the U.S. Treasury by filing Reports of Foreign Bank and Financial Accounts (FBARs) on FinCEN Form 114. Specifically, U.S. taxpayers must […]

Lifetime Learning credit can be used for educational expenses

If you’re looking to upgrade job skills, possibly to qualify for a higher-paying position, don’t overlook the Lifetime Learning credit (LLC). Unlike with the American Opportunity Tax Credit, you don’t need to be pursuing a degree or credential to claim an LLC of up to $2,000 a year (calculated as a 20% match of as […]

Tax relief for individuals and businesses affected by events in Israel

Taxpayers affected by recent events in Israel may qualify for tax relief, according to a new IRS notice. Affected individuals and businesses will have until Oct. 7, 2024, to file returns and make payments that originally were due on or after Oct. 7, 2023, and before Oct. 7, 2024. This includes 2022 returns that qualified […]