IRS set to increase overview

The IRS is poised to use some of its $80 billion appropriation from the Inflation Reduction Act to increase scrutiny on multinational companies’ transfer pricing activities, according to one tax professional. The expectation is that new enforcement agents and technological investments will focus some attention on large corporations with international operations to curb tax avoidance […]

Nanny Tax

The Social Security Administration (SSA) has announced that the so called “nanny tax” threshold will increase by $200 in 2023. Cash paid by an employer for domestic services in the employer’s private home aren’t considered FICA wages in 2023 if the amount paid during the year is less than $2,600 (up from $2,400 in 2022). […]

Settlement Announced

The U.S. Treasury Department’s financial intelligence and money laundering watchdogs announced settlements reached with a virtual currency exchange platform for violations and failure to monitor potential illegal activity. The platform agreed to pay more than $29 million to the Financial Crimes Enforcement Network. Over $24 million of that payment will be credited towards the company’s […]

Disaster relief

Most people know that victims of disasters such as storms, wildfires or floods may get tax relief from the IRS. But do you know what must happen first? The area must be declared a major disaster by the Federal Emergency Management Agency (FEMA). Taxpayers in a FEMA-declared disaster area automatically get more time to file […]

IRS releases new tax Brackets

IRS new tax brackets and standard deduction could save some families hundreds or even thousands of dollars. Now, for the bad news. – MarketWatch https://on.mktw.net/3TAkgHN

Deductions for business expenses

Do you operate a small business? You can deduct the costs involved in bringing in new customers and keeping existing ones, including advertising and marketing expenses. The expenses must be ordinary (common in your industry) and necessary (appropriate for your business). The IRS reminds business owners that among the expenses you generally can’t deduct are […]

A “needs improvement” grade given to the IRS

Following a recent audit, the Treasury Inspector General for Tax Administration (TIGTA) basically issued a “needs improvement” grade to the IRS. TIGTA examined the agency’s compliance with legal restrictions on using records of tax enforcement results when evaluating employees. It found “instances of noncompliance,” including improper designation of workers, failure to maintain documentation and uneven […]

Crypto-Asset Reporting Framework

It’s no secret that some international criminals use cryptocurrency for illegal transactions and to evade tax authorities. The Organization for Economic Co-operation and Development recently proposed the Crypto-Asset Reporting Framework (CARF) to help the Group of 20 (G20) countries expose and stop these law breakers. The CARF is intended to bolster the existing common reporting […]

Increase in SS wage base

The Social Security (SS) “wage base” will increase to $160,200 for 2023, up from $147,000 for 2022. Wages and self-employment income above this threshold aren’t subject to SS tax. The Federal Insurance Contributions Act (FICA) imposes SS tax and a Medicare tax on employees, employers and the self-employed. There’s no threshold for Medicare tax. All […]

DOL proposes guidance on employee determination

The U.S. Dept. of Labor (DOL) has issued a proposed rule that revises earlier guidance on how to determine who’s an employee or independent contractor under the Fair Labor Standards Act (FLSA). The proposed rule would reduce the risk that employees are misclassified as independent contractors, while providing added certainty for businesses that engage with […]