US Tax Court rules on IRS method to determine unreported income

If the IRS suspects a taxpayer isn’t reporting all income, it may conduct a “bank deposits analysis” to compare deposits with what the taxpayer reported on a tax return. In one case, the IRS conducted an analysis of a married couple’s business because they hadn’t reported all income and hadn’t maintained proper records. The couple […]

Just Married?

It’s a good bet that taxes are the furthest thing from the minds of a newlywed couple. (Unless, that is, one of them is a CPA!) Regardless, sometime after the wedding and honeymoon, it’s important to sit down to review a few tax-related items. Indeed, a change in marital status can precipitate tax implications. For […]

What happens if I don’t pay?

If a taxpayer fails to pay the IRS following a tax assessment, the agency can take legal action to collect the overdue tax. Options include filing liens and issuing levies to claim and seize the delinquent taxpayer’s property. In one new case, a federal appeals court ruled that the U.S. Tax Court properly sustained the […]

Did you make a gift?

Taxpayers may want to reduce their taxable estates by making completed gifts during their lifetimes. To be complete, a donor must intend to make the gift and it must be irrevocable (that is, the donor has given up control). A check is revocable until it’s deposited or cashed. In one case, a decedent’s son had […]

Let Mattel You about Barbie’s Taxes

Let Mattel You about Barbie’s Taxes https://bit.ly/44rvHY5

What is an ordinary and necessary expense?

Business owners can deduct ordinary and necessary expenses on their tax returns in the year the costs were incurred, if the costs are substantiated. The U.S. Tax Court ruled that a married couple who reported no income for a new business wasn’t allowed to deduct most costs. They spent money on supplies and materials that […]

Filing Date Coming for Spring Storm relief states

The IRS is reminding residents and businesses in parts of four states that their extended 2022 tax filing due date is coming up fast on July 31, 2023. Taxpayers in certain counties in Arkansas, Indiana, Mississippi and Tennessee were granted extensions (see eligibility, https://bit.ly/3rundkh ) following severe spring storms. Among other things, this due date […]

The war against inflation is a long way away from being won

The war against inflation is a long way away from being won – CNBC https://bit.ly/3OitxUS

Summer activities can impact your taxes

Summer isn’t tax season (thank goodness!), but common summer activities can have tax implications. For example, if you’re getting married, you should notify the IRS and Social Security Administration about any name or address changes. Sending kids to camp? Depending on various factors, camp expenses could qualify for the Child and Dependent Care Credit. If […]

2 big takeaways from the Supreme Court ruling on Biden’s student loan forgiveness plan

2 big takeaways from the Supreme Court ruling on Biden’s student loan forgiveness plan – CNBC https://bit.ly/44y3w9W