The IRS has updated table used for health insurance credit

The IRS has updated the table used to determine an individual’s health insurance premium tax credit for federally subsidized health plans. The benchmark to calculate the affordability of employer-sponsored health care will drop to 8.39% of household income for 2024. A plan is deemed affordable if the employee’s required contribution doesn’t exceed the annual percentage […]

Are you subject to the Foreign Tax Compliance Act?

Are you subject to the Foreign Account Tax Compliance Act (FATCA)? You may be if you own foreign financial assets valued at more than $50,000 aggregate. Certain taxpayers must report these holdings annually to the IRS, using Form 8938. But the reporting threshold is generally higher for married taxpayers who file jointly and people living […]

Tax evasion leads to prision

A man who owned several companies was sentenced in 2022 to 30 months in prison for tax evasion and employment tax crimes. According to the U.S. Dept. of Justice, he withheld more than $1 million in taxes from his employees’ wages but didn’t pay required taxes to the IRS. After serving about 12 months of […]

Tax relief for Hawaii wildfires announced

Eligible victims of the wildfires in Hawaii, including on the island of Maui, now have additional time for certain tax-related tasks. Following a disaster declaration issued by the Federal Emergency Management Agency, the IRS granted tax relief to those affected by wildfires that began on Aug. 8. These victims now have until Feb. 15, 2024, […]

IRS issues final regulations and guidance for COVID credits

The IRS recently issued final regulations and guidance for COVID-19-related employment tax credits. Specifically, the regs provide that businesses that erroneously received additional refunds in excess of what they were entitled to may be assessed underpayment penalties. This involves the Employee Retention Tax Credit, the Qualified Paid Sick Leave Credit and the Qualified Paid Family […]

Child Care tax credit update

Child care tax credits could expand if a bipartisan bill passes. On July 17, U.S. House members Salud Carbajal (D-CA) and Lori Chavez-DeRemer (R-OR) introduced the Child Care Investment Act. “Skyrocketing costs have left affordable child care out of reach for too many families,” stated Chavez-DeRemer in a press release. If passed, the bill would […]

Happy Labor Day

“I’m a greater believer in luck, and I find the harder I work the more I have of it.” ― Thomas Jefferson Wishing you a Happy Labor Day!

IRS asks for feedback on notices

These days, it seems as though every service provider wants customer feedback. The IRS is no different. As part of its 2023 Strategic Operating Plan, the agency is updating the notices and letters it sends taxpayers. It’s asking people who’ve recently received these communications to suggest changes that would make them easier to understand and […]

Cook County Illinois receives storm relief

Cook County, Ill. residents and businesses affected by severe storms and tornados that started March 31, 2023, now have until Oct. 31 to file most federal tax returns that were due on or after June 29. This relief includes extra time to make payments. In addition, taxpayers can claim disaster-related casualty losses on their 2022 […]

IRS reminds educators about unreimbursed expense deduction

It’s time to face facts: Summer is winding down and “back to school” is in the air. Teachers and other educators have been working hard ahead of the school year to prepare their classrooms. The IRS is reminding qualified educators that they may deduct up to $300 of unreimbursed expenses on their 2023 tax returns. […]