Proposed Inflation Reduction Act

If the proposed Inflation Reduction Act is passed, domestic manufacturers could bear the brunt, warns one lawmaker. U.S. Senator Mike Crapo (R-ID), a member of the Senate Finance Committee, cited analysis by the Joint Committee on Taxation (JCT). While the JCT projects that only about 150 taxpayers annually will be subject to the 15% book […]

Hobby or Business?

Is your hobby actually a business? It’s an important question because although you must report hobby income on your tax return, hobby expenses aren’t currently deductible. In general, an activity is considered a business if you pursue it with continuity and regularity and your primary purpose is to generate income or profit. Some other factors […]

IRS Whistleblower Program

New IRS Whistleblower Program director John Hinman admits that his group needs the public’s help. Specifically, it needs “people with first-hand knowledge of non-compliance who are willing to share what they know with us so we can investigate it when warranted.” Whistleblowers can report their specific, timely and credible claims about individual and corporate tax […]

CHIPS Act

The U.S. Senate has passed legislation on semiconductor production and economic competitiveness, including an investment tax credit for manufacturing facilities and equipment. The Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act includes more than $52 billion for U.S. companies that make computer chips as well as a tax credit for investment in chip […]

Agreement on the Inflation Reduction Act

The Inflation Reduction Act has moved a step closer to being passed in the U.S. Senate. Sen. Chuck Schumer (D-NY) and Sen. Joe Manchin (D-WV) have agreed to a pared down package of provisions once part of the larger Build Back Better Act. Tax-wise, the bill would impose a 15% minimum tax on corporations with […]

Independent Contractor reporting

Businesses must withhold employment taxes from employees’ wages and report the wages and the taxes withheld to the IRS. But the reporting obligations for workers who aren’t employees can be trickier. While a business isn’t responsible for withholding employment taxes from nonemployee (or independent contractor) compensation, a business that pays more than $600 to an […]

The Family and Community Inflation Relief Act

Senator Charles Grassley (R-IA) has introduced legislation that would index certain tax benefits to adjust for inflation. The Family and Community Inflation Relief Act would help parents by adjusting the Child Tax Credit and the Non-Child Dependent Credit’s amounts and phase-out thresholds for inflation. Additionally, the bill would provide relief to college students by adjusting […]

Fake charities in the news

When IRS Form 1023-EZ was introduced, it was intended to ease a backlog of tax-exempt organization applications. But in early July, the New York Times reported that one individual registered 76 fake charities, many using Form 1023-EZ and all sharing the same P.O. box. Now, Congressman Bill Pascrell (D-NJ) is pressing the IRS to explain […]

Estimated Budget effect on Revenue

How much revenue are President Biden’s fiscal year 2023 budget proposals estimated to generate? According to the nonpartisan Joint Committee on Taxation (JCT)’s recent review: $1.7 trillion between 2023 and 2032. From 2023 to 2027, Biden’s proposals are expected to net $795 billion. However, many of these proposed revenue generators, such as raising the corporate […]

Identity Theft

Taxpayer identity theft is alive and well. However, progress has been made in combating this crime. The IRS, state agencies and tax professionals urge taxpayers to protect themselves with an Identity Protection PIN (IP PIN). This 6-digit number must be requested from the IRS and is renewed each year. The number must be entered on […]