CBO reports on the monthly budget

The Congressional Budget Office (CBO) is reporting that the fiscal year 2022 federal budget deficit will be lower than its $1 trillion projection made a few months ago. For the first nine months of fiscal year 2022, the deficit was $514 billion. The deficit recorded during the same period last year was $2.2 trillion, larger […]

Offer in Compromise

Taxpayers who owe more taxes than they can pay may seek an Offer in Compromise (OIC) from the IRS to settle the debt for less. If the IRS finds that a taxpayer is able to pay in full, the OIC will likely be rejected. In one case, a warehouse worker who was estranged from his […]

IRS audits questioned by House Ways and Means Committee

Does the IRS unfairly target some taxpayers for audits? Some members of the House Ways and Means Committee believe former FBI director, James Comey, and his onetime deputy, Andrew McCabe, were victims of politically motivated tax audits. Both men were chosen for random audits under the National Research Program. The IRS has called the accusations […]

What are the tax obligations of a “gig worker”?

If you’re a “gig worker” or freelancer, your tax obligations are different from an employee’s. You’re considered self-employed, so clients don’t withhold taxes from your payments. But even if they don’t send you information returns (such as Form 1099-K), you owe tax on that income. Gig workers may have to pay quarterly estimated taxes. Or, […]

Taxpayer loses deduction because of recordkeeping

To help defray the sky-high cost of gas, taxpayers who use their vehicles for business saw the standard mileage rate rise on July 1, from 58.5 cents to 62.5 cents. But you could lose that tax benefit if you neglect to keep good records as you go. In one case, a consultant and his wife’s […]

Who Needs Earthquake Coverage and Why

Who Needs Earthquake Coverage and Why – Insurance Journal https://bit.ly/3OvzTxl

Taxpayer data at risk?

Did IRS hiring practices during COVID-19 put taxpayer data at risk? The Treasury Inspector General for Tax Administration (TIGTA) recently took a look. By Jan. 2022, about 1,900 people hired from late March 2020 to mid-July 2021 hadn’t yet had their employment eligibility documents physically inspected, including some I-9 forms. Many were hired with deferred […]

Children employed in family businesses

Taxpayers can hire their children to work in their businesses but the children must hold legitimate jobs. In one case, a consultant and his wife’s estate weren’t entitled to business deductions for payments to “assistants,” who were the couple’s children and a grandchild. The payments were for alleged reimbursement or compensation for services provided in […]

IRS again faces backlog, bringing refund delays for paper filers

IRS again faces backlog, bringing refund delays for paper filers – Detroit Free Press https://bit.ly/3IVpLgc

Toyota Electric Vehicle tax credit phaseout

Toyota is the latest auto manufacturer to sell enough plug-in electric vehicles (EVs) to trigger a gradual phaseout of federal tax incentives for specified models sold in the U.S., joining Tesla and General Motors. Toyota reported that it has sold more than 200,000 EVs, meaning that its federal EV credits will begin to dwindle in […]