US federal budget soars

The U.S. federal budget deficit will double this year, excluding student loans, according to the August report from the Congressional Budget Office. The widening deficit is due to a 3% rise in spending and a 10% decline in federal tax receipts. Spending increases include higher interest on the national debt and higher Social Security, Medicare […]

Will there be a shutdown?

If Congress fails to strike a spending deal and the U.S. government shuts down on Oct. 1, 2023, hundreds of thousands of federal workers will be furloughed. Originally, the IRS said it would remain fully staffed and operate normally, no matter what happens. However, the tax agency is now working on new contingency plans, which […]

IRS pauses on processing ERC Claims

Amid urgent concerns about scams, the IRS has immediately halted acceptance of new claims for the Employee Retention Credit (ERC), at least through year end. IRS Commissioner Danny Werfel has seen a flood of reports from tax pros and others, stating that many new claims are ineligible. To reduce the chances of fraud, previously filed […]

Keep good records of your cryptocurrency transactions

As the IRS begins compliance work on cryptocurrency transactions, taxpayers who participate in them should prepare their documentation for scrutiny. You need to keep good crypto activity records because you may not be able to rely on your transaction platform to provide that data. However, some platforms, such as Coinbase, send Form 1099s to customers […]

IRS issues estimate reminder

The IRS is reminding self-employed people, gig workers, retirees and others who make estimated tax payments that their third quarter deadline was Sept. 15, 2023. You should make estimated payments if you expect to owe at least $1,000, after subtracting for withholding and credits, in 2023. Use the Tax Withholding Estimator at irs.gov to accurately […]

Georgia Tax relief

Following a disaster declaration issued by the Federal Emergency Management Agency, the IRS is providing victims of Hurricane Idalia in Georgia relief from upcoming tax deadlines. The relief applies to individuals and businesses in 28 Georgia counties affected by Hurricane Idalia. It postpones various filing and payment deadlines from Aug. 30, 2023, to Feb. 15, […]

IRS issues notice covering corporate alternative minimum tax

The corporate alternative minimum tax (CAMT) imposes a 15% minimum tax on the adjusted financial statement income (AFSI) of large corporations. Generally, the CAMT applies to large corporations with average AFSI exceeding $1 billion. In Notice 2023-64, the IRS has provided guidance to help corporations determine whether they’re liable for the CAMT and, if so, […]

Is your charity legitimate?

Many taxpayers ramp up their charitable giving towards year-end, to support causes they care about and possibly secure a tax deduction. Before you give, the IRS reminds taxpayers to verify that the organizations they give to are legitimate and tax-exempt. You can use the IRS Tax Exempt Organization Search tool to find out the status […]

GAO issues report on IRS safeguarding taxpayer data

The “IRS needs to address critical safeguard weaknesses,” according to a Government Accountability Office (GAO) report. The GAO’s focus was to look at how well the IRS has implemented prior recommendations related to cybersecurity and protection of taxpayer data. One serious challenge is the risk involved when the IRS transfers taxpayer data to contractors. Since […]

Deceased spousal unused exclusion in your estate

When taxpayers die, their deceased spousal unused exclusion (DSUE) can be transferred to their surviving spouses. This is usually referred to as “portability.” However, the executor of an estate is required to file an estate tax return within nine months of the decedent’s death that elects portability and describes how the DSUE amount was calculated. […]