GAO reports on hospital nonprofit status

The Government Accountability Office (GAO) has released a report on IRS oversight of nonprofit hospitals. It identifies legal requirements hospitals must satisfy to maintain a tax-exempt status, including community benefits. Several factors make it difficult for the IRS to verify compliance. For example, it’s up to the hospitals to decide the community benefits they provide. […]

Taxation of Unemployment benefits

If you’ve lost your job, keep in mind that any unemployment compensation you receive is taxable income. Unemployment benefit recipients generally must include the payments in their income when they file their federal tax returns. You should receive Form 1099-G, Certain Government Payments, showing the amount of unemployment compensation paid to you during the year. […]

Ranking Individual Income Taxes on the 2023 State Business Tax Climate Index

Ranking Individual Income Taxes on the 2023 State Business Tax Climate Index https://bit.ly/42k05SN

TIGTA issues report on effectiveness of IRS cybersecurity measures

A Treasury Inspector General for Tax Administration (TIGTA) audit has determined that the IRS continues to make progress in many of its information technology program areas. Indeed, most required security controls and control enhancements were implemented for the Child Tax Credit Update Portal and the Secure Access Digital Identity system. However, shortcomings were revealed as […]

GAO issues “High-Risk List”

The Government Accountability Office (GAO) issued a “High-Risk List” that highlights areas across the federal government that are vulnerable to waste, fraud, abuse and mismanagement, or that need broad reform. In its 2023 report, issued in April, the list includes the enforcement of tax laws. According to the report, this high-risk area includes two segments […]

Debt Limit bill passes House

On April 26, the U.S. House of Representatives passed a bill to raise the government’s $31.4 trillion debt ceiling that includes sweeping spending cuts. The bill, which passed 217-215, isn’t expected to pass the Senate. In addition, President Biden has said he’ll veto it. The “Limit, Save, Grow Act” would increase the debt limit by […]

Noncash Charitable donation failure

The U.S. Supreme Court (SCOTUS) recently declined to hear a case involving a charitable donation. To secure a tax deduction, property donated to a qualified charity must be accompanied by a contemporaneous receipt from the organization. If the value is more than $5,000, the taxpayer must also submit IRS Form 8283, Noncash Charitable Contributions, and […]

What’s ahead for Social Security?

What could be ahead for Social Security (SS)? SS Trustees and the bipartisan Congressional Budget Office now estimate that the retirement trust fund will be exhausted within 10 years, a year earlier than previously predicted. Due to rising interest rates and the highest inflation since 1981, SS recipients needed cost-of-living increases of 8.7%, which consumes […]

Am I a partnership?

Spouses who operate a business together must understand the federal tax rules involved. A spouse is considered an employee if there’s an employer/employee arrangement. For example, if one spouse controls the business and the other spouse is under his or her direction, the second spouse is subject to tax and FICA withholding. However, if the […]

Collection Financial Standards Revised

IRS Collection Financial Standards are revised annually and used to determine how much income delinquent taxpayers are allowed to keep to pay their bills (with the rest going to settle their tax debts). Allowable living expenses include those that meet the “necessary expense test.” This test is defined as expenses that are necessary to provide […]