Report on Stimulus payments

A new Government Accountability Office (GAO) report, “Stimulus Checks: Direct Payments to Individuals During the COVID-19 Pandemic,” states that the federal government made $931 billion in stimulus payments in 2020 and 2021. However, 2% of those payments were made improperly. The GAO suggests that the IRS and Treasury Department can reduce errors while administering tax […]

Impact of Divorce on Taxes

If you’re getting divorced, you have one more thing to think about: taxes. When you receive a final divorce decree, update your withholding by filing a new W-4 with your employer. If you receive alimony, you may need to increase withholding or make estimated payments. However, if your divorce was finalized after Dec. 31, 2018, […]

The research and development credit

U.S. Rep. Jackie Walorski (R-IN) has introduced a bill that would double the research and development (R&D) credit. The Fostering Innovation and Research to Strengthen Tomorrow (FIRST) Act would double the “traditional” credit to 40%. For more established companies, the existing credit rate, which uses a complicated formula, would double, from 20% to 40% of […]

Global minimum tax update

Requiring large multinational corporations to report income everywhere they operate is essential to a global deal on minimum corporate income tax, according to Kimberly Clausing, a UCLA law professor who recently served as the U.S. Deputy Assistant Treasury Secretary for tax analysis. Clausing said the country-by-country reporting provision is a “core principle” of Pillar Two, […]

Recordkeeping alert

Are you keeping detailed tax records? With 2022 half over, you should be mindful that tax planning is a year-round task. Putting off recordkeeping could result in lost tax opportunities. Eligibility for certain tax credits and deductions available to taxpayers is based on their adjusted gross income (AGI). AGI is gross income minus specific deductions […]

Happy 4th of July!

Happy Birthday, America! “It will be celebrated with pomp and parade, bonfires and illuminations from one end of this continent to the other.” – John Adams Let Freedom Ring. Wishing you a safe and happy 4th of July!

CBO issues deficit report

Slight economic shifts could result in higher-than-expected deficits over the next decade, said the Congressional Budget Office (CBO). The CBO recently issued a report that analyzed variables that could affect the economy through 2032, including productivity growth, gross domestic product, labor force growth, and interest and inflation rates. For example, if productivity growth slowed by […]

Employer offer in compromise process changes

For the IRS to accept an employer’s offer in compromise (OIC) to settle its tax debt for less than the amount it owes, the employer must observe all rules, including a new one. Previously, employers were required to make all federal tax deposits (FTDs) for the quarter submitted and subsequent quarters when making their OICs. […]

An Unusual Tax Court Hobby Loss Opinion

An Unusual Tax Court Hobby Loss Opinion – Forbes https://bit.ly/3R5Js8E

Family Health Insurance

The Kaiser Family Foundation estimates that 5.1 million people are affected by what’s called the “family glitch” in health insurance. Normally, employees whose work-based insurance is unaffordable (more than 9.5% of household income) can qualify for premium tax credits (PTCs). However, if the coverage is unaffordable only when the employee adds family members, the individual […]