The House Ways and Means Committee

The Ways and Means Committee is the chief tax-writing committee in the U.S. House of Representatives. It also oversees Social Security, Medicare and other issues. Not surprisingly, it’s a popular assignment. Now that Republicans have secured a House majority, their representation on the committee is expected to increase from 17 to 25. (Democrats likely will […]

Former IRS Commissioners comment on IRA funding

Three former IRS commissioners said that the agency can best use its 10-year, $80 billion appropriation from the Inflation Reduction Act by improving its audit selection process rather than merely increasing the number of audits. The trio agreed that the money should also be put toward investments in technology that reduce the chance of a […]

Happy Thanksgiving

“I can no other answer make but thanks, and thanks, and ever thanks.”– William Shakespeare, Twelfth Night We wish you and your family a blessed and happy Thanksgiving. And thank you, thank you, thank you…

Lame Duck Session

With the 2022 midterm election mostly in the rearview mirror, the congressional agenda for the upcoming lame duck session is beginning to come into view. Senate Finance Committee Chairman Ron Wyden (D-OR) said: “There’s going to be a clear debate about tax choices, and this whole debate about the child tax credit is front and […]

The Trust Fund Recovery Penalty

Employers that withhold taxes from wages but don’t pay them over to the IRS may face a penalty of 100% of the unpaid tax. The Trust Fund Recovery Penalty (TFRP) can be assessed personally against “responsible” parties. In one case, a corporation owner’s daughter/corporate officer was assessed a TFRP of $680,472 for unpaid payroll taxes. […]

The IRS is hiring

The IRS is set to hire a new wave of customer service reps, to end staff shortages and ensure taxpayers can access the help they need. That’s one of the key purposes of the $80 billion allotted to the agency as part of the Inflation Reduction Act. “If the IRS does not make significant changes, […]

Courts rule on student loan forgiveness plan

A U.S. District Court in Texas ruled on Nov. 10 that President Biden’s student loan debt relief plan is unlawful. On Aug. 24, 2022, Biden announced a student loan forgiveness plan that further extends the suspension of collection actions and wage garnishment. It also allows for a certain amount of debt forgiveness for eligible individuals […]

IRS Office of Appeals issues Focus Guide

The IRS Independent Office of Appeals has come under some criticism, most recently by members of the American Institute of Certified Public Accountants. But Appeals claims it’s “taking important steps to expand communications with external stakeholders and to improve taxpayer access.” It has just released its fiscal year 2023 Focus Guide, which provides details on […]

Bankruptcy of cryptocurrency platform

The recent bankruptcy of cryptocurrency exchange platform FTX Trading Ltd. is unsettling for stakeholders. It also has tax implications. FTX is only the latest crypto platform to enter Chapter 11 bankruptcy protection, after Celsius Network and Voyager Digital earlier this year. With no real precedent for large-scale bankruptcy in the crypto industry, tax consequences are […]

The 2022 Renewable Electricity Production Credit

The IRS has provided new 2022 Renewable Electricity Production Credit amounts for qualified facilities. New credit amounts were needed because the Inflation Reduction Act changed the way these amounts are calculated. The 2022 credit amounts on the sale of electricity produced in a qualified facility placed in service after Dec. 31, 2021, are: 2.75 cents […]