Deadline extended for qualified plans

The IRS has extended deadlines for amending eligible retirement plans to reflect COVID-19 legislation. These include the CARES Act and the Taxpayer Certainty and Disaster Tax Relief Act of 2020. The new deadline is Dec. 31, 2025, for an IRA, a qualified retirement plan or a nongovernment 403(b) plan. Later deadlines will apply to government […]

Florida tax relief for Hurricane

The IRS has provided return filing and payment extensions to taxpayers who are located in FEMA-designated areas of Florida affected by Hurricane Ian. The relief postpones various deadlines that occurred starting Sept. 23, 2022, until Feb. 15, 2023. This means individuals who have a valid extension to file their 2021 tax returns due to run […]

17 states give inflation relief check

If you file taxes in these 17 states, you could be getting an inflation-relief check from the government—here’s who qualifies – CNBC https://cnb.cx/3egyLBl

Tax penalties?

Do you have questions about tax payments and possible penalties? Of course, we can answer any questions. In addition, the IRS has a web page that explains options for paying your tax bill, including what to do if you owe more than you can pay now. You may be able to request a payment plan. […]

Capital Gain relief for Farmers

Farmers and ranchers affected by drought may qualify for capital gains tax relief. The relief applies to taxpayers who were forced by drought conditions to sell certain livestock held for draft, dairy or breeding purposes. Generally, livestock sold due to drought must be replaced within a four-year replacement period. Under Notice 2022-43, the IRS is […]

Alaska relief

It’s been a busy year for natural disasters, and the IRS has once again announced regional tax relief. This time, it’s for taxpayers in Alaska affected by storms and flooding that began on Sept. 15, 2022. Individuals and businesses in the affected areas have until Feb. 15, 2023, to submit payments for quarterly estimated taxes […]

Fraud penalty

If the IRS finds a taxpayer has committed fraud, the penalty is up to 75% of the unreported tax. In one case, a taxpayer was a managing member and employee of an engineering business. He didn’t report wage income he received from the company. The IRS used the “bank deposits method” to compare his bank […]

Revised per diem rates

The IRS has announced special 2022-2023 per diem rates that went into effect Oct. 1, 2022. Employees may use the rates to substantiate expenses for lodging, meals and incidental expenses when traveling away from home for business. To account for cost-of-living differences in the U.S., the daily rates are higher for localities that the IRS […]

Guidance issued on R&D credit for contractors

The IRS recently issued guidance regarding what research activities conducted by a contractor are “unfunded activities” eligible for the research and development (R&D) tax credit. Section 41 research expenses above a certain base amount qualify for the credit. They can be incurred for in-house or contracted research. Research performed for a client under a contract […]

Inquiry on IRS spending plans

Senate Finance Committee Republicans are asking for specifics on how the IRS plans to spend the additional $80 billion the Inflation Reduction Act earmarked for the agency. In a recent letter to IRS Commissioner Chuck Rettig, the Republican senators requested information on how the IRS will prioritize taxpayer services, guard against partisan targeting, protect taxpayer […]