Court of Appeals rules on Payroll Trust Fund penalties case

A U.S. Court of Appeals ruled against a hospital administrator and held her liable for trust fund recovery penalties (TFRPs) assessed by the IRS. The administrator was responsible for payroll, as well as signing and reviewing checks. She also knew that the financially troubled hospital wasn’t paying withholding taxes to the IRS. Instead of prioritizing […]

What does it mean If my business receives a Notice CP2100 from the IRS?

What does it mean if a business receives a Notice CP2100 or CP2100A from the IRS? These notices tell recipients that the Form 1099 information returns they’ve submitted contain missing or incorrect Taxpayer Identification Numbers, names or both. In response, payers need to compare accounts listed on the notice with their own records and make […]

Expensing of Machinery and Equipment Should Be Made Permanent

Expensing of Machinery and Equipment Should Be Made Permanent https://bit.ly/43KE00l

Whistleblower award or not?

Taxpayers who give the IRS Whistleblower Office information about unpaid taxes may qualify for cash awards. To be eligible, tips must be credible and specific, relate to tax underpayments or violations of tax laws and be used to collect proceeds. In one case, a whistleblower provided a tip to the IRS regarding a company he […]

Debt agreement impacts to the budget

The U.S. Senate has passed the Fiscal Responsibility Act (FRA) and President Biden signed it last weekend. It suspends the debt ceiling until 2025 and makes several changes related to domestic spending. Among the discretionary spending cuts, the IRS will lose some of its $80 billion funding provided by the Inflation Reduction Act. The FRA […]

Identity unknown?

Identity unknown? If the IRS suspects a person with unknown identity of tax violations, it may ask a court for permission to serve a “John Doe summons” to obtain information. At the same time, the U.S. Dept. of Justice states that cryptocurrency transactions have an “inherently pseudo-anonymous aspect” and may be used to hide taxable […]

Living Overseas?

Attention Americans living and working abroad: The clock is ticking toward the deadline to file your federal income tax return. The due date is June 15 if your tax home and residence are outside the U.S. and Puerto Rico, or you’re serving in the military outside the U.S. and Puerto Rico on the regular tax […]

Debt Bill passes

On May 31, the U.S. House of Representatives passed a bill to suspend the debt ceiling through Jan. 1, 2025. The Fiscal Responsibility Act will limit non-defense federal spending, and according to the Congressional Budget Office, would reduce federal budget deficits by $1.5 trillion over the next 10 years. Among other provisions, the bill will […]

Student Loan Debt

Tax relief may be available for student loan debtors, but only if they meet income requirements. Individuals with qualified student loans can deduct on their federal income tax return up to $2,500 of interest annually if their modified adjusted gross income is $75,000 or less ($155,000 for married couples filing jointly). If they earn more, […]

Can we simplify the tax code?

The American Institute of CPAs (AICPA) believes the U.S. tax code should be simpler, much simpler. In a letter to the IRS, the AICPA urged the agency and U.S. Treasury Dept. to “continue pursuing tax simplification.” Among the suggestions supplied by the AICPA were safe harbor alternatives; clear and consistent definitions and simple, general rules; […]