Are your business expenses substantiated?

The tax code, specifically Section 162(a), allows businesses a tax deduction for “ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business.” The hitch is that the expenses must be business related and properly substantiated. In one case, the U.S. Tax Court ruled that a married couple […]

IRS rules on private foundations

Tax-exempt private foundations that award scholarships and grants must meet certain requirements. The IRS recently issued private letter rulings for three foundations. One, which makes grants to alumni of certain schools, won’t be taxed on related qualified expenses. A second foundation makes awards to dependents of its employees for college. It won’t be taxed on […]

Deficit projections

Fiscal challenges are ahead for the United States, according to the Congressional Budget Office (CBO). Each year, the nonpartisan CBO publishes its projections of where the federal budget and the economy will be in 30 years, based on current laws. Overall, the CBO foresees that large, sustained deficits will lead to high and rising debt, […]

AICPA expresses need for NFT guidance

In a June letter to the IRS, the American Institute of CPAs (AICPA) responded to IRS Notice 2023-27 about non-fungible tokens (NFTs). In it, the organization expressed a need for additional guidance and made several recommendations. Among the AICPA’s suggestions to the IRS and U.S. Treasury Department were that the agencies should: clarify and define […]

When Missouri drivers can expect construction on I-70 to start

When Missouri drivers can expect construction on I-70 to start – KTVI Fox 2 St. Louis https://bit.ly/3XD6fwh

IRS warns of new fraud scam

The IRS is warning taxpayers about a new fraud scam. Be suspicious if you receive a cardboard envelope from a delivery service claiming to be from the IRS. The enclosed letter will be riddled with typos and inaccuracies and mention an “unclaimed refund.” It will ask you to reply with “filing information,” including your Social […]

2019 Tax year closing soon

The IRS is issuing a last call to nearly 1.5 million taxpayers to claim their refunds for tax year 2019 by filing a tax return before the July 17, 2023, deadline. For these unclaimed refunds, the IRS estimates that the average median refund amounts to $893. Indeed, many low- and moderate-income workers may be eligible […]

IRS issues final regs on replacement of offer rates

The transition from the use of interbank offer rates (IBORs) to other reference rates has been years in the making. Recently, the IRS issued final regs that provide the replacement rate for the IBOR. The replacement rate may be used by taxpayers to determine the amount of interest expense attributable to their excess U.S.-connected liabilities […]

Are you a gig worker?

Are you part of the “gig economy?” Many people earn money as independent contractors by providing on-demand work, goods or services. If so, the IRS wants to remind you that money earned in the gig economy is taxable. It’s common for gig work (including driving a car for booked rides, renting out property and selling […]

Is Cancellation of debt taxable?

Generally, when individuals borrow money, they’re obligated to repay the debts. If the lender subsequently does a cancellation of debt (COD), the borrower may have to include all or part of the COD amount in gross income. Exclusions exist, such as when the debtor is insolvent (defined as when liabilities exceed assets) at the time […]