Estimated Taxes are Due

Sept. 15 is an important date to mark on your calendar if you must make quarterly estimated tax payments. That’s the due date for the third estimated tax payment for 2022. Who must pay estimated tax? Generally, those who have taxable income that isn’t subject to withholding must make payments if they expect to owe […]

Failure to Report Foreign Bank Account

In a recent court case, a taxpayer hit with an IRS penalty of $2,173,703 claimed that the penalty violated the excessive-fines clause of the U.S. Constitution. She’s now seeking help from the U.S. Supreme Court. The penalty involves her failure to file a required “Report of Foreign Bank and Financial Accounts” to timely disclose a […]

Remember 9/11

“Are you guys ready? Let’s roll.” –Todd Beamer, a passenger on United Airlines Flight 93. We remember……

AICPA requests expanded relief

AICPA asks IRS to expand penalty relief https://bit.ly/3RRPWrk

The Federal Budget versus National Income and Product Accounts

Should you be worried that federal government budget numbers and the national income and product accounts (NIPAs) numbers for fiscal years 2022–2023 don’t match? For example, current receipts in the NIPAs exceed projected revenues in the Congressional Budget Office’s (CBO) baseline by about 5%. According to the CBO, that’s due to “conceptual differences.” The annual […]

Withholding Tax Case in the News

Most business owners and managers understand their responsibilities to withhold Social Security, Medicare and income taxes from employee wages. One Florida staffing company manager who didn’t follow the law learned about consequences the hard way: He was sentenced to 48 months in prison. The manager admitted to the U.S. District Court for the Southern District […]

National Preparedness Month

September is National Preparedness Month. The height of hurricane season is fast approaching and there’s an ongoing threat of wildfires and flooding in many areas of the country. Therefore, the IRS is urging you to develop an emergency preparedness plan, or if you already have one, update it for 2022. Specifically, it’s critical to secure […]

Tax Return Backlog

How is the IRS progressing through its tax return processing backlog? As of Aug. 19, the IRS reports that it had 8.7 million unprocessed individual tax returns received in calendar year 2022. Among the returns are 1.7 million that contain errors or require special handling, while 7 million are paper returns that still must be […]

Education Credits

It’s that time of year when students are starting or returning to college or trade school. Higher education is expensive, but taxpayers who take post-high school coursework in 2022 (or who have dependents taking such coursework) may qualify for one of two tax credits that can reduce their tax bills. The American Opportunity Tax Credit […]

Update requested on IRS reviews

Senator Joni Ernst (R-IA) has requested that updates be conducted of two previous Treasury Inspector General for Tax Administration (TIGTA) audits dealing with IRS employees. Specifically, Ernst requested that TIGTA “conduct updated reviews of the IRS’s employment practices to determine how many agency employees are not currently fully compliant on their tax debts and how […]