IRS focuses on US Tax Gap

The gross tax gap is defined as the difference between estimated “true” tax liability for a given period and the amount of tax that’s actually paid to the IRS on time. The Congressional Budget Office estimates that the U.S. tax gap from 2014 to 2016 averaged $496 billion annually. Because of funding from the Inflation […]

Required minimum distributions from IRAs

The SECURE 2.0 Act made several changes regarding the beginning dates for required minimum distributions (RMDs) from IRAs. The IRS is providing transition relief to IRA owners and some beneficiaries regarding these changes. Specifically, in Notice 2023-54, the IRS is extending the rollover deadline for certain distributions that were mischaracterized as RMDs. In addition, the […]

Future threats to the Social Security Trust Fund

In a July 12 hearing, the U.S. Senate Budget Committee addressed future threats to the Social Security (SS) Trust Fund. If nothing changes, by 2035, benefits may have to be reduced. One option is to raise the full retirement age, based on gains in life expectancy that allow people more years to draw benefits. But […]

Extra time for Vermont Floods

Victims of flooding in Vermont have extra 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 flooding that began on July 9. These victims now have until Nov. 15, 2023, to file various individual and business tax returns and […]

Tax Court says no

The U.S. Tax Court said “no” to several taxpayers who tried to claim charitable contribution deductions related to a sale of property owned by their family’s S corporation. After a “bargain” sale of the property for $5.25 million to a government entity, they claimed $5.22 million in charitable contribution deductions on their individual tax returns. […]

Work continues on taxation of digital assets

Lawmakers are continuing to work on the tricky issue of how digital assets should be taxed. Currently, certain tax aspects of these assets can create complex reporting challenges for taxpayers. U.S. Senate Finance Committee Chairman Ron Wyden (D-OR) and Ranking Member Mike Crapo (R-ID) say they’re investigating key questions, including treatment of loans, wash sales, […]

Monday is the last chance to claim your 2019 tax refund

Monday is the last chance to claim your 2019 tax refund – CNN https://bit.ly/3pGdQO5

IRS Issues Alerts and Begins Audit Activity Related to the Employee Retention Tax Credit

IRS Issues Alerts and Begins Audit Activity Related to the Employee Retention Tax Credit … – JD Supra https://bit.ly/3OfBfzo

Electronic Filing regulations for W-2s highlighted

Attention: employers! The IRS has issued a reminder that highlights the electronic filing regulations implemented earlier this year for Form W-2, Wage and Tax Statement. Indeed, beginning calendar year 2024, most Forms W-2 are required to be filed electronically if employers are filing 10 or more such forms. Previously, for calendar years 2022 and 2023 […]

Penalties updated for TIN reporting

Employers and businesses that must obtain taxpayer identification numbers (TINs): The IRS just updated some relevant information. Publication 1586, “Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs on Information Returns” has several objectives. The publication provides general information needed to avoid penalties for information returns that are filed with missing or incorrect TINs, […]