New regs on foreign tax credit

Chief financial officers (CFOs) of some major U.S. companies are seeking help from U.S. Treasury Secretary Janet Yellen. In a letter, they said the final foreign tax credit (FTC) regs issued on Dec. 28, 2021, are a “radical departure from well-established law.” The final regs, they added, put U.S companies at a “competitive disadvantage” with […]

Bankruptcy discharge of tax debt

The IRS often can’t attempt to collect debt from taxpayers whose debt has been discharged in bankruptcy. A U.S. Bankruptcy Court in West Virginia recently ruled against the IRS after the agency sent multiple collection notices to a debtor who had a discharge order. The IRS excused its actions by saying they were inadvertent and […]

IRS Priority Guidance Plan update

The IRS compiles annual Priority Guidance Plans to identify tax issues that should be addressed through various means, including regulations, revenue rulings, revenue procedures, notices and other administrative guidance. Recently, it released its third quarter update for the 2021-2022 plan (https://bit.ly/3GVliZD). For the full year (which ends June 30, 2022), the plan includes 193 projects. […]

IRS increases mileage rate

With gas prices spiking, IRS increases mileage rate for 2022 – JC Post https://bit.ly/3xfSvdY

Support Ukraine Through Our Tax Code Act proposed

A bipartisan group in the U.S. House of Representatives has introduced legislation to disallow foreign tax credits for companies that pay taxes to the governments of Russia or Belarus. The Support Ukraine Through Our Tax Code Act aims to hold accountable corporations, trusts, partnerships, estates and individuals who continue to do business in Russia and […]

Extended Tax Returns

If you’ve requested for a tax filing extension, the IRS is encouraging you to e-file your 2021 return as early as possible. There’s no need to wait until the October deadline. Taxpayers who requested an extension have until October 17 to file their tax returns. However, if you have all the necessary information to file […]

2022 IRS Dirty Dozen

Taxpayers beware, warned the IRS, as it issued the 2022 “Dirty Dozen” scams list. The list starts with four potentially abusive arrangements to avoid, including: charitable remainder annuity trusts, Maltese individual retirement arrangements, foreign captive insurance and monetized installment sales. If these schemes appear on a tax return, they will likely draw unwanted IRS focus. […]

Improper payments

Is the IRS successfully preventing the issuance of improper payments by adhering to the 2019 Payments Integrity Act? The Treasury Inspector General for Tax Administration (TIGTA) recently took a look and found the IRS to be “generally compliant” with the law. However, TIGTA identified four programs as susceptible to improper payments because risk assessment reports […]

Social Security wage base projected to increase

The Social Security Administration’s (SSA) Office of the Chief Actuary is projecting that the Social Security wage base will increase from $147,000 to $155,100 in 2023. The SSA provides three forecasts for the wage base (intermediate, low and high cost). All forecasts predict an increase from $147,000 to $155,100 in 2023. Future intermediate forecasts are: […]

Military Spouse Hiring Act

The “Military Spouse Hiring Act,” was introduced in the U.S. Senate and is currently under review. The proposed legislation is mirrored by a bill in the U.S. House. The bill seeks to expand the Work Opportunity Tax Credit to include qualified military spouses as a targeted group that qualifies for the credit. A “qualified military […]