Filing Deadline approaches

Americans living and working abroad: You have less than two weeks to file your federal income tax return. The due date is June 15 if your tax home and residence are outside the U.S. and Puerto Rico, or you’re serving in the military outside the U.S. and Puerto Rico on the regular tax filing date. […]

Deducting research costs

Many people dislike how the Tax Cuts and Jobs Act amended Code Sec. 174, particularly manufacturers. Before Jan. 1, 2022, businesses could amortize or expense research and experimentation costs in the year they were incurred. Typically, they expensed them immediately to optimize their deduction. Now, they must either capitalize or amortize these costs for periods […]

Secure Act 2.0 update

The Secure Act 2.0 is inching closer to the finish line. The Senate’s Health, Education, Labor and Pensions (HELP) Committee recently released a legislative draft ingeniously titled “Retirement Improvement and Savings Enhancement to Supplement Healthy Investments for the Nest Egg Act” (RISE and SHINE Act). This is the Senate’s version of the U.S. House’s Secure […]

IRS update

The IRS is pushing back against a Treasury Inspector General for Tax Administration (TIGTA) audit (https://bit.ly/3933UFN ) that addressed the processing of Recovery Rebate Credit (RRC) claims. The audit found, among other things, that the IRS improperly issued RRC payments totaling $898 million. In addition, “the IRS declined to review nearly $598 million of the […]

Summer work

School is out for the summer and many teenagers will be looking for ways to earn money. That’s why the IRS is reminding young workers of their tax responsibilities. New employees must provide employers with a Form W-4 (Withholding Allowance Certificate). If they need help with the form, they can log onto the IRS website, […]

IRS processing backlog update

The IRS is facing an enormous backlog of unprocessed returns, due in part to COVID-19 and other issues. By April 29, 2022, the IRS reported the paper return backlog had topped 18.5 million. One solution being urged by a group of Republican senators is for the IRS to adopt 2-D barcode technology. This would allow […]

The IRS is working to increase its audit rates

The IRS is working to increase its audit rates for higher earners https://cnb.cx/3NO75Qy

Determination Letters are going electronic

Employers must soon electronically submit a form to the IRS. Form 5300 (Application for Determination for Employee Benefit Plan) is filed to request a determination letter from the IRS for the initial qualification of a defined benefit or a defined contribution plan. Beginning June 1, 2022, Form 5300 must be submitted electronically here: https://bit.ly/3NOpPj1. The […]

Report on IRS handling of credits

As part of a series of COVID-19-related audits, the Treasury Inspector General for Tax Administration (TIGTA) has completed its evaluation of how the IRS handled advance premium tax credit (APTC) issues. TIGTA has found that the IRS “took immediate steps to remove excess APTC repayment” from 2020 tax returns. But it also identified 30,231 taxpayers […]

Refund available for Missouri Gas Tax Increase

Missouri sets up refunds of gas tax increase – The Center Square https://bit.ly/3mbCfWq