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 […]

Will ERC Equal PPP In Terms of Fraud? – Newswise https://bit.ly/3hPKKY1

Remarks by outgoing IRS Commissioner

Outgoing IRS Commissioner Charles P. Rettig remains optimistic about the agency’s opportunities to implement transformational changes over the next decade. Rettig said he’s confident that funding provided by the Inflation Reduction Act will be used to accelerate new online features, explore artificial intelligence projects and expand community outreach. At the same time, he added, the […]

donating to charity through an IRA

Distributions from a traditional Individual Retirement Account (IRA) are generally taxable when received, though exceptions exist. For charitably inclined taxpayers who are at least 70½ years old, one tax-favored exception is the qualified charitable distribution (QCD). A QCD is a nontaxable distribution made directly by an IRA’s trustee to organizations that are qualified to receive […]

Closing a business?

If you’re closing a business, there are important bases you may have to cover. Here’s a rundown: File a final tax return and related forms, depending on the type of business. Issue final paychecks to employees and file employment tax reports for the quarter, plus annual reports. Provide Forms W-2 to employees, and Forms 1099-NEC […]