Whistleblower Awards

Taxpayers who give the IRS Whistleblower Office (WBO) information about unpaid federal 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, the manager-shareholder of a family business provided the WBO details […]

California Storm victim relief

Victims of California storms that began Jan. 8, 2023, have been granted tax relief, the IRS announced. Relief is available to those who live or have a business in the disaster area, giving them until May 15, 2023, to file various individual and business tax returns and make tax payments. Also extended are the deadlines […]

Corporate Alternative Minimum Tax

Recently, the IRS issued interim guidance about the new corporate alternative minimum tax (CAMT), which was created as part of the Inflation Reduction Act. The CAMT imposes a 15% minimum tax on the adjusted financial statement income of large corporations for taxable years starting after Dec. 31, 2022. Typically, the tax applies to corporations with […]

Ways and Means Committee Leader elections

Now that the U.S. House has elected a speaker, it’s down to business. On Jan. 9, Jason Smith (R-MO) beat several competitors to become chair of the powerful Ways and Means Committee. He announced several agenda items, including rescinding the $80 billion recently allocated to the IRS to hire new employees, upgrade technology and fix […]

2020 Unemployment tax corrections

The IRS has completed its final corrections of tax year 2020 accounts for taxpayers who overpaid their taxes on unemployment compensation they received in 2020. The American Rescue Plan Act, enacted in 2021, excluded up to $10,200 in 2020 unemployment compensation from taxable income calculations. The exclusion applied to individuals and married couples whose modified […]

Energy Efficient Home Improvement Credit

The IRS recently updated its FAQs regarding the Energy Efficient Home Improvement (EEHI) Tax Credit. As amended by the Inflation Reduction Act, the EEHI Credit amount increases to 30% of a taxpayer’s cost for certain qualified expenditures made during a calendar year. This includes qualified energy efficiency improvements, residential energy property expenditures and home energy […]

Florida Storm Relief

Tax relief is being provided for victims of Hurricane Nicole, which began hitting Florida on Nov. 7, 2022. Individuals qualify for relief if they reside in, or have a business in, affected counties in the covered disaster area. This gives them until March 15, 2023, to file certain individual and business tax returns, including quarterly […]

Employer Tax crimes

Employers that withhold taxes from employees and don’t pay them over to the IRS can face severe penalties. They may even wind up in jail. In one case, a Maryland man was sentenced to three years in prison for not paying employment taxes to the IRS on behalf of his companies’ employees. According to court […]

Quarterly Tax Estimate Deadline approaching

The deadline to make a final estimated quarterly tax payment for 2022 is Jan. 17, 2023. Many taxpayers who should be paying taxes this way overlook this important task. That’s why the IRS is urging those who paid too little in 2022 to not miss this deadline and possibly avoid a surprise tax bill or […]

Uncertain Tax Positions

A contested new requirement related to uncertain tax positions (UTPs), or how tax positions affect corporations’ income tax liability, will largely remain intact. In October, the IRS announced changes to UTP reporting. But many affected taxpayers and tax professionals objected to the requirement that they would have to cite “authoritative sources” contrary to the positions […]