Debt Limit Reached

Absent congressional intervention, the federal government will soon reach its limit on the amount of money it’s authorized to borrow, according to U.S. Treasury Secretary Janet Yellen. The current limit was set on Dec. 16, 2021. If not raised (or suspended) once again, the limit will be met on Thursday, Jan. 19. “Once the limit […]

Changes to Charitable giving documentation recommended

Does current tax law encourage charitable giving? According to National Taxpayer Advocate (NTA) Erin M. Collins in her annual report to Congress, the answer may be “no.” Donations to qualified charities can generally be deducted on the donor’s tax return. However, the donor must have received a written acknowledgement from the charity before filing a […]

Want your tax refund ASAP?

Want your tax refund ASAP? Here are 5 pitfalls that can delay your check. – CBS News https://cbsn.ws/3wiwWcJ

Do you have a profit motive?

Taxpayers who are in business to make a profit can usually deduct related expenses on their tax returns. If the IRS doubts a profit motive exists, the activity may be deemed a hobby, limiting the ability to deduct costs. The burden to prove there’s a profit motive is on the taxpayer. In one case, a […]

Ways and Means Committee makes member changes

Newly elected U.S. House Ways and Means Committee Chair Jason Smith (R-MO) has wasted no time in assembling his team. The majority party typically gets 25 seats (compared with 18 for the minority party) on the tax-writing committee, and Smith has added 10 members now that Republicans are in charge. These include lawmakers with tax-writing […]

Filing Season Opens Soon

Get ready to file your 2022 tax return! The IRS has announced that the 2023 tax season begins on Monday, Jan. 23. As always, taxpayers are encouraged to file well in advance of the April 18, 2023, deadline to beat the last-minute rush and help prevent tax identity theft. The IRS is expecting more than […]

CBO revenue projections on the mark?

How accurate are the Congressional Budget Office’s (CBO’s) revenue projections? To answer that question, the CBO annually assesses the quality of its past projections and identifies factors that might have led to under- or overestimates of revenues. In a report, the CBO said its projected $4.4 trillion for federal revenues in 2022 was too low, […]

Americans Moved to Low-Tax States in 2022

Americans Moved to Low-Tax States in 2022 https://bit.ly/3iL61Dl

Update on the IRS and the 2023 filing season

The National Taxpayer Advocate, Erin Collins, says that, while the IRS continues to be plagued by the same problems, she is hopeful for its future. In her “2022 Annual Report to Congress,” Collins noted issues the IRS has faced since the beginning of the COVID-19 pandemic, such as paper return processing delays and customer service […]

House votes to rescind IRS funding infusion

On Jan. 10, the U.S. House of Representatives passed a bill that would rescind most of the $80 billion provided by Congress for the IRS to step up enforcement, update antiquated technology systems and make other changes. However, the Family and Small Business Taxpayer Protection Act is destined to die in the Senate, where Democrats […]