Penalty Relief

The IRS is providing broad-based penalty relief to most taxpayers who filed certain 2019 and/or 2020 tax returns late due to the COVID-19 pandemic. The relief will be automatic for qualifying individual and business taxpayers. Specifically, it applies to the failure-to-file penalty. This penalty is typically assessed at a rate of 5% per month, up […]

Starting a business?

Are you hoping to start a business? Many people dream of being their own bosses. To get off to a strong start, you’ll need to make good decisions. For example, which business structure will you use (such as a sole proprietorship or corporation)? This decision will affect the taxes you pay. Another decision is whether […]

Will student loan forgiveness be taxable in my state?

List of States That Might Tax Student Loan Debt Cancellation Dwindles https://bit.ly/3ADY8Eu

Student loan debt relief

On Aug. 24, President Biden announced a plan for student loan debt relief. The three-part plan may affect nearly 8 million borrowers. Part one will allow $20,000 of debt forgiveness for taxpayers who went to college on a Pell Grant or $10,000 without a Pell Grant. This applies only to taxpayers earning below $125,000 a […]

ABLE accounts for the disabled

Achieving a Better Life Experience (ABLE) accounts can help support disabled individuals without affecting their eligibility for government benefits. Although contributions to an ABLE account aren’t tax-deductible, earnings are tax-deferred. Even better, if distributions are used by a beneficiary for specified disability-related costs, they’re tax-free. Family and friends may contribute up to $16,000 annually and […]

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 […]