TIGTA completes audit of Child Tax Credit

The Treasury Inspector General for Tax Administration (TIGTA) has completed another audit of IRS processes for the 2021 advance Child Tax Credit (CTC). The American Rescue Plan Act enabled eligible taxpayers to receive up to one half of their estimated 2021 CTC in advance monthly payments for part of the year. As a result, the […]

SCOTUS agrees to hear case on Tax Cuts and Jobs Act

The U.S. Supreme Court has agreed to hear a constitutional challenge to a tax established by the Tax Cuts and Jobs Act. The taxpayers, a married couple, owned shares in a controlled foreign corporation (CFC). This made them subject to the mandatory repatriation tax (MRT), which says that owners of 10% or more shares of […]

How High Are Beer Taxes in Your State?

How High Are Beer Taxes in Your State? https://bit.ly/3NB2wdO

State Tax Changes Taking Effect July 1, 2023

State Tax Changes Taking Effect July 1, 2023 https://bit.ly/3NWg6tV

Understanding Backup withholding requirements

Businesses need to be aware of the rules for backup withholding, if required. Backup withholding, currently 24%, applies to income not typically subject to withholding. If your business makes certain payments to people who haven’t provided you with their legal names and taxpayer ID numbers (TINs), or if the IRS notifies you that a payee’s […]

Tax Treaty with Chile goes to the President’s desk

In a nearly unanimous vote, a tax treaty between the United States and Chile passed the U.S. Senate on June 22, 2023. Supporters say this could boost investment between the two countries by greatly reducing certain taxes. U.S. citizens and residents who pay taxes to Chile will be able to claim a tax credit on […]

How Would the American Families and Jobs Act Change Opportunity Zones?

How Would the American Families and Jobs Act Change Opportunity Zones? https://bit.ly/3NzTC03

What is practicing before the IRS?

In general, any tax professional (including in-house tax counsel) who submits Form 2848, Power of Attorney and Declaration of Representative, is considered to be “practicing before the IRS.” This means they’re subject to Circular 230. The IRS Office of Professional Responsibility has issued an alert that answers frequently asked questions about the issue. The alert […]

National Taxpayer Advocate wants improvements to correspondence audits

In a recent report to Congress, the National Taxpayer Advocate addressed several of her service’s FY 2024 priorities. One of them is to improve correspondence audit processes. Most IRS audits are conducted by correspondence (through the mail), but taxpayers often have trouble navigating the process. They may not, for example, understand the notices they receive, […]

IRS backlog continues

The IRS continues to have a backlog of unprocessed paper amended tax returns, the National Taxpayer Advocate (NTA) recently reported to Congress. However, the overall backlog of original and amended paper returns has been significantly reduced in the past year. “The IRS reduced its backlog of unprocessed paper tax returns from 13.3 million at the […]