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 […]

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 […]