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 […]

Bill introduced to decriminalize cannabis

Could cannabis be decriminalized at the federal level? U.S. Senate Democrats have introduced a bill to remove it from the controlled-substances list. If passed, a ban would be lifted, which now prohibits businesses from deducting expenses related to cannabis production in states where the drug is legal. The Cannabis Administration and Opportunity Act would impose […]

Students and Staff at Educational Institutions Beware!

Students and staff at educational institutions, beware. An IRS impersonation scam continues to target schools, including people with “.edu” email addresses. This applies to public, private and nonprofit schools. The suspect emails display the IRS logo and may refer to a “tax refund” in the subject line. The sender then tells recipients that, to claim […]

House votes to increase IRS funding

Much improvement is needed at the IRS and the U.S. Treasury Dept. That’s why on July 20th, the U.S. House of Representatives approved adding an extra $1 billion to the revenue agency’s fiscal year 2023 budget. The bill from the House Appropriations Committee would raise IRS funding to $13.6 billion. Some of the increase will […]

Low Income Housing Credit Improvement Act

It’s no secret that many U.S. cities are experiencing affordable housing crises. A recent Congressional hearing considered several proposals to address the shortage of inexpensive rental units, including the Affordable Housing Credit Improvement Act. Sponsored by Senator Maria Cantwell (D-WA), the bill would enlarge the low-income housing tax credit (LIHTC), expand eligibility for it and […]

CHIPS Act

Bipartisan support in Congress for a (limited) tax bill? It’s true! The pared-down CHIPS Act that would provide tax credits for companies to invest in semiconductor manufacturing has support from lawmakers in both parties. The $50 billion bill would provide a 25% tax credit for U.S. businesses that invest in chip-making as well as the […]