Tax Court case shows importance of mailing to correct IRS address

It’s critical to get the details right when mailing items to the IRS. Most taxpayers know that a tax return and payment (or other documents) must be mailed by the due date, to the correct address and with adequate postage. But in one case, a taxpayer was charged with failure to timely file his return […]

The battle between tax pros and social media

The battle between tax pros and social media: Many apps offer unreliable tax advice, experts say – CNBC https://bit.ly/3tnt0sJ

Special per diem rates announced

The IRS has just announced special per diem rates for ordinary and necessary business travel expenses in fiscal year 2023-24. The rate for incidental expenses when traveling in or outside the continental United States (CONUS) will be $5 per day. When using the high-low substantiation method, the rate for travel to high-cost localities will be […]

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 […]