Don’t Panic if You Receive an IRS CP14 Notice After Paying Your Taxes

Would you know what to do if you received a CP14 notice from the IRS informing you that a tax balance is due when, in fact, you’ve paid your tax bill? According to the Taxpayer Advocate Service, the first step is to verify that the taxes were paid. If you have documentation proving that you […]

IRS Signals New Guidance on Tax-Exempt Executive Compensation Rules

The IRS has announced that it will issue proposed regulations addressing the excise tax on excessive compensation to employees of tax-exempt organizations. The tax generally applies to any applicable tax-exempt organization (ATEO) that pays a covered employee more than $1 million in a tax year or an excess parachute payment. Tax legislation signed into law […]

Planning a Business Sale or Succession? Consider an F Reorganization

An F reorganization can help some companies restructure tax efficiently during succession planning or before a business sale. This type of restructuring is generally available only to businesses treated as corporations for federal income tax purposes, including C corporations and S corporations. F reorganizations may preserve tax attributes, support administrative continuity, and help balance buyer […]

Home Buying This Summer? Know What’s Tax Deductible

Thinking about buying a home this summer? Some costs may be deductible while others aren’t. To claim homeownership tax benefits, you must itemize deductions — which will save tax only if your total itemized deductions exceed your standard deduction. Deductible expenses generally include state and local property taxes and qualified mortgage interest (both subject to […]

Not All Income Is Tax-Exempt: A Key Reminder for Religious Organizations

Religious organizations are generally exempt from federal income tax. However, like some other tax-exempt charities, these organizations can be subject to unrelated business income tax (UBIT). They usually can conduct income-producing activities that are related to their tax-exempt purpose (such as selling religious books) as long as the activities aren’t “substantial.” But income may be […]

Congress Proposes Clearer Tax Rules for Digital Assets

In the U.S. House, a bipartisan group of legislators has proposed a new tax framework for digital assets. The Digital Asset Protection, Accountability, Regulation, Innovation, Taxation and Yields (PARITY) Act is intended to establish clear standards for taxing digital assets, maintaining market stability and preventing abuse. The bill’s main provision is a “deemed-basis rule” that […]

Large Estate? The GST Tax Could Impact Your Legacy Plan

Are you considering making gifts during your lifetime or bequests at death to loved ones two generations or more below you? If so, beware of the generation-skipping transfer (GST) tax. It ensures that large estates can’t bypass a round of taxation that would normally apply if assets were transferred from parent to child and then […]

IRS Announces Updated 2027 HSA and HDHP Limits

If you’re covered by a high-deductible health plan (HDHP), you can contribute pretax income to a Health Savings Account (HSA). Funds can be withdrawn tax-free to pay qualified medical expenses. The IRS annually adjusts various HSA and HDHP limits for inflation. For 2027, the maximum HSA contribution amount will be $4,500 for individuals (vs. $4,400 […]

IRS Releases New Calculator for Long-Term Contract Reporting

The IRS has released a new calculator to help businesses with multi-year construction and manufacturing contracts. The Excel-based Percentage-of-Completion Method (PCM) Look-Back Interest Calculator is designed to help with completing Form 8697, “Interest Computation Under the Look-Back Method for Completed Long-Term Contracts” (https://bit.ly/4u9m6RM). While the calculator may simplify part of the process, it doesn’t guarantee […]

Teen Tip Earners May Qualify for a Valuable Tax Deduction

Many teens are starting summer jobs and may earn tips. Tips are a nice bonus because they’re extra cash before payday. They can also result in a tax deduction. Employees who earn tips from jobs like waiting tables, delivering food or other eligible occupations may be able to deduct up to $25,000 of qualified tips […]