CBO scores budget deficit

The Congressional Budget Office (CBO) estimated that the federal budget deficit for the first 10 months of fiscal year 2022 was $727 billion, with an expectation that “the total deficit for 2022 will be close to the $1 trillion estimate” it published in May. “That deficit projection doesn’t include costs for a possible executive action […]

Inflation Reduction revenue target

The IRA will raise revenue through a new 15% minimum tax on large, profitable corporations and a 1% excise tax on stock buybacks. The bill is intended to reduce the U.S. deficit by about $300 billion. Other revenue would come from stricter enforcement of tax compliance by the IRS. The IRA also includes significant provisions […]

Receive an IRS letter?

Have you ever received a letter from the IRS? Some people may get a little panicky from unexpected IRS attention. They might even tuck an unopened letter into a drawer, hoping it will go away. But not all IRS correspondence is scary. It might be a notice of a change to your account. Generally, IRS […]

Crowdfunding, is it taxable?

Is income from crowdfunding taxable? It’s a popular way to raise money for emergencies, charities, businesses and more. But the funds could be taxable. Under federal law, gross income is income from all sources, unless it’s excluded by law, such as a gift. For crowdfunded donations to qualify as gifts, certain conditions must be met. […]

Missouri Storm Relief

After extending tax filing and payment deadlines for Kentucky victims of recent storms, the IRS has now offered the same relief to qualified Missouri residents and businesses. For regular tax deadlines between July 26 and Nov. 15, the extended deadline is Nov. 15. This includes returns that received a 2021 tax return extension to Oct. […]

Advance Child Tax Credit payments

One of the provisions of a 2021 law was that the IRS developed an online portal enabling taxpayers to unenroll from receiving advance Child Tax Credit payments. The IRS released an updated website in Jan. 2022 to address the required functionality. But a recent audit by the Treasury Inspector General for Tax Administration (TIGTA) found […]

CHIPS Act includes tax credits for manufacturers

After months of political fighting, President Biden on August 9 signed the CHIPS and Science Act into law. This is a semiconductor manufacturing and economic competitiveness package that includes an investment tax credit for semiconductor manufacturing facilities and equipment. The $280 billion law includes more than $52 billion for U.S. companies producing computer chips, as […]

JCT scores the Inflation Reduction Act

In its latest cost analysis of the Inflation Reduction Act (IRA), the Joint Committee on Taxation (JCT) forecasts that the bill will reduce the federal deficit by $90.7 billion over 10 years. The JCT said three-quarters of the bill’s deficit-cutting impact ($68.3 billion) is expected to occur within five years of enactment, from 2022 through […]

Proposed 15% corporation minimum tax

The Inflation Reduction Act imposes a new 15% corporate alternative minimum tax on the adjustable financial statement income of certain corporations. The tax will apply if it exceeds the taxpayer’s regular tax, including its base erosion and anti-abuse tax for the tax year. An applicable corporation for a tax year is one that meets an […]

Charity Fraud

Disasters happen. When they do, scammers go on the prowl, often looking for easy prey among two groups: disaster victims seeking help and taxpayers who would like to donate funds to help them. How can the public be sure that the person or agency they’re dealing with is legitimate? One red flag is unsolicited contact. […]