Tax rules regarding remote work arrangements

Tax rules regarding remote and hybrid work arrangements need updating. That’s what theAmerican Institute for Certified Public Accountants (AICPA) is telling the IRS and Treasury Department. The AICPA claims that existing revenue rulings and case law interpretations don’t reflect the fact that many workers now consider their homes their “principal place of business.” This makes […]

Data Exposed

Tax-exempt organizations take note: Some of your tax data may have been publicly exposed. On Sept. 2, the IRS admitted it erroneously released some Form 990-T information via its Tax Exempt Organization Search (TEOS) tool. Form 990-T is used by not-for-profits to report income unrelated to their exempt purpose. Fortunately, the disclosed information didn’t include […]

Offshore accounts and assets

The use of shell banks, along with limited tax law enforcement, has enabled tax evasion by wealthy individuals through offshore financial accounts and assets, according to a recent Senate Finance Committee report. Committee Chair Ron Wyden (D-OR) noted that the Foreign Account Tax Compliance Act (FATCA) is aimed at cracking down on tax evasion by […]

Failure to file penalty

The IRS recently provided relief from the failure-to-file penalty for taxpayers who missed the filing deadlines for certain 2019 and/or 2020 tax and information returns. The penalty is typically assessed at a rate of 5% per month and up to 25% of the unpaid tax when a federal income tax return is filed late. To […]

Cryptocurrency regulation proposed

Bipartisan legislation to regulate cryptocurrencies has been submitted in the U.S. Senate. The Responsible Financial Innovation Act would set new tax rules for cryptocurrencies and shift much of their oversight to the Commodity Futures Trading Commission. The bill was submitted by Sen. Kirsten Gillibrand (D-NY) and Sen. Cynthia Lummis (R-WY). It would create a de […]

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 […]