Priority Guidance Plan

The IRS hasn’t yet released its 2022-2023 Priority Guidance Plan (a regulatory to-do list), but several items are expected to be on the agenda. This starts with components of the Inflation Reduction Act. Tax professionals have asked that corporate split-offs not be factored into the new 15% corporate alternative minimum tax in lieu of transition […]

Filing Deadline approaches

If you’re one of the nearly 19 million taxpayers who requested an extension to Oct. 17 to file your 2021 tax return, the IRS is reminding you to claim all the tax breaks you’re entitled to. “Each year, eligible taxpayers overlook money saving deductions and credits that can help them with the cost of raising […]

Clean Vehicle Credit

When it comes to the Clean Vehicle Credit (CVC) introduced by the Inflation Reduction Act (IRA), the devil is in the details. The CVC is an update to the previous $7,500 credit for the purchase of a new electric vehicle (EV), with major changes that phase in over time. One change that went into effect […]

Tax records

Taxpayers who operate a business can generally deduct business-related costs on their income tax returns. But they must keep thorough, contemporaneous records proving that the deductions are for legitimate business expenses. An information technology consultant and handyman deducted the cost of professional education on his return. But the IRS found the amounts weren’t business-related because […]

Freedom of Information Act

Is the IRS improperly handling Freedom of Information Act (FOIA) requests? Taxpayers may request records from the IRS through the FOIA. To ensure that requests are properly handled, the Treasury Inspector General for Tax Administration (TIGTA) must annually review the process. After the IRS transitioned to an automated system (FOIAXpress), TIGTA reviewed a sample of […]

e-Postcard files need to use authentication

Tax-exempt organizations take note: Form 990-N (e-Postcard) filers need to use the IRS’s new authentication platform. In general, nonprofits are eligible to file the annual information return 990-N if they have annual gross receipts of $50,000 or less. Regardless of how they previously logged in, these nonprofits now have three options: 1) Sign in with […]

IRA causes form revisions

The Inflation Reduction Act (IRA) can be expected to require a few tax form adjustments. It appears that the IRS may revise Forms 941, 6755, 8794 and possibly others. Employers use these forms to claim the qualified small-business payroll tax credit for boosting research activities, which increased under the IRA. Section 13902 of the IRA […]

IRA provides for IRS funding

The Inflation Reduction Act (IRA) provides about $80 billion over 10 years to fund the IRS and improve its “tax enforcement activities” and technology. The funds will be available to the IRS through Sept. 30, 2031. With the funds, the IRS plans to hire nearly 87,000 personnel to help with tax-law enforcement efforts to further […]

Guidance issued for Clean Vehicle Credit

The U.S. government has begun issuing guidance regarding the Clean Vehicle Credit in the new Inflation Reduction Act (IRA). The IRA introduced a $4,000 tax credit for the purchase of used EVs and updated the $7,500 credit for new ones, with major changes. To qualify for the credit, there are now new requirements, including caps […]

Business identity theft

Is the IRS successfully combatting business identity theft? The Treasury Inspector General for Tax Administration (TIGTA) recently took a look. In an audit, TIGTA reported that progress is being made by using filters to detect potential fraud, plus conducting prompt reviews of business tax returns with high-dollar refunds. However, it added: “TIGTA continues to believe […]