Social Security Expansion Act introduced

“It is time to scrap the cap, expand benefits, and fully fund Social Security,” Independent Senator Bernie Sanders stated in a Senate Budget Committee hearing on June 9. With the support of seven Democratic co-sponsors, Sanders introduced the Social Security Expansion Act, which would increase Social Security benefits by $2,400 annually. This increase would be […]

IRS increases Standard Mileage Rate

Good news for those who use a vehicle for business purposes and are frustrated by the sky-high cost of gas! Starting July 1, 2022, the IRS is increasing the standard mileage rate for business use to 62.5 cents (from 58.5 cents for Jan. 1 – June 30, 2022) per mile. The rate for medical use […]

IRS collection and examination functions

The Treasury Inspector General for Tax Administration (TIGTA) recently released an audit (https://bit.ly/3trerBO ) aimed at providing data on activities of the IRS’s collection and examination functions through 2020. According to the audit, in 2020, taxpayers filed 157 million individual and 11.3 million business income tax returns. These filings resulted in $3.5 trillion of total […]

Global Minimum Tax

Treasury Secretary Janet Yellen said Poland is expected to drop its opposition to a global minimum tax on multinational corporations, clearing the way toward finalizing a broader deal on international taxation. The deal, brokered through the Organization for Economic Cooperation and Development (OECD), has been signed by the U.S. and 140 other taxing jurisdictions. A […]

The Trust Fund Recovery Penalty

Employers that withhold taxes from employees but don’t pay them over to the IRS may face harsh penalties. The Trust Fund Recovery Penalty (TFRP) equals 100% of the unpaid tax. The TFRP can be assessed personally against responsible parties and may include prison time. One taxpayer who operated an ammunition manufacturing and sales business withheld […]

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 […]