IRS Announces 27 States Participating in New Federal Scholarship Tax Credit Program

The IRS has announced that 27 states have elected to participate in the Federal Scholarship Tax Credit (FSTC) program. Under the program, beginning in 2027, eligible taxpayers can claim a federal tax credit for contributions to Scholarship Granting Organizations (SGOs) that provide scholarships for qualified elementary and secondary education expenses. To claim the credit of […]

New IRS Security Framework Targets Identity Theft and Payroll Fraud

In response to ongoing threats to tax and payroll data, the IRS and Security Summit partners have introduced a new framework to better protect taxpayers from identity theft and related fraud. One key improvement is increased collaboration with payroll providers, whose wage and withholding data are frequent targets for cybercriminals. The initiative also establishes five […]

Emergency Preparedness Includes Protecting Important Tax Documents

Emergencies can strike your home at any time, whether it’s a natural disaster, such as a hurricane or wildfire, or another event, such as an electrical fire or burst pipe. Preparation can help minimize disruption. Create (or update, if needed) your emergency plan today to protect your financial and tax records. Consider making secure electronic […]

Starting a Business? Your Choice of Entity and Tax Year Matters

The ultimate success of a business often comes back to decisions made at its inception. If you’re planning to start a business, one key decision is choosing its structure, commonly sole proprietorship, C corporation, S corporation, partnership or limited liability company. In addition to owner liability variations, all have different tax requirements that can affect […]

FinCEN and IRS Increase Scrutiny on Payroll Tax Fraud and Off-the-Books Wages

The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN), in coordination with the IRS and other federal government agencies, is warning banks about “exploitation of the U.S. financial system by non-work authorized populations and their employers.” Banks are instructed to look for off-the-books payroll arrangements that might suggest an employer is hiring and concealing unauthorized workers […]

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 […]