Tax Cuts Proposed

Republican members of the U.S. House Ways and Means Committee have introduced multiple bills that total around $237 billion in tax cuts. One would extend and retroactively restore three expired business tax breaks from the Tax Cuts and Jobs Act that involve research spending, interest expenses and equipment purchases. The package would also introduce a […]

State Tax Reform and Relief Trend Continues in 2023

State Tax Reform and Relief Trend Continues in 2023 https://bit.ly/3Cy6Sxu

Department of Treasury releases compliance framework

The U.S. Dept. of the Treasury has announced a framework designed to promote fair and transparent compliance in tax administration and enforcement. Four core principles make up the framework. The government should: 1) make it easier for taxpayers who want to comply with the law to fulfill their obligations; 2) prioritize enforcement efforts based on […]

The new Corporate Alternative Minumum Tax

The Inflation Reduction Act created the new corporate alternative minimum tax (CAMT). It imposes a 15% minimum tax on the adjusted financial statement income of large corporations for taxable years beginning after Dec. 31, 2022. CAMT generally applies to large corporations with average annual adjusted financial statement income exceeding $1 billion. The IRS, in Notice […]

IRS issues scam alert

The IRS is cautioning taxpayers with outstanding tax bills to avoid a scam that claims they can resolve tax debt for pennies on the dollar. They’re called offer in compromise (OIC) “mills,” and are run by unscrupulous companies that lead taxpayers to believe they can “magically get rid of tax debt,” the IRS warns. In […]

Reasonable compensation

Under tax law, compensation can be deducted by a business only to the extent that it’s reasonable. Any unreasonable portion, if paid to a shareholder, isn’t deductible and may be taxed as a dividend. In one case, a U.S. Appeals Court found that a closely held construction company didn’t establish that the compensation paid to […]

Estate tax case rules life insurance taxable

In an estate tax case, a U.S. Court of Appeals found life insurance was taxable and properly valued. Two brothers, who were the sole shareholders of a corporation, had life insurance policies so that if one brother died, the other could use the proceeds to redeem his brother’s shares. After one brother died, the IRS […]

What is a small business?

A recent report by the Joint Committee on Taxation, a nonpartisan committee of the U.S. Congress, discusses the definitions of “small business” for tax purposes. As the report states, there’s no one definition of a small business. Instead, several definitions apply depending on the context, various criteria and certain thresholds. Criteria include a business’s gross […]

IRS hiring provides information on the Tax Gap

A recent report from the Treasury Inspector General for Tax Administration (TIGTA) about IRS hiring provides some information about the size of the “tax gap.” The tax gap is the difference between the amount of tax owed for a tax year and the amount that’s actually paid on time and voluntarily. In the report, the […]

Deductible travel costs

Individuals who travel for business may be eligible for tax deductions. The IRS defines a “business traveler” as an individual who travels away from home for longer than an ordinary day’s work and needs to sleep somewhere other than home to meet the demands of work while away. Deductible expenses must be ordinary and necessary. […]