Federal Revenue collections increase

In positive economic news, the Congressional Budget Office (CBO) is reporting a big boost in federal revenues thus far in fiscal year 2022. The federal budget deficit for the first seven months of fiscal year 2022 was an estimated $360 billion, or about one-fifth of the $1.9 trillion deficit recorded last year. Revenues surged by […]

Quarterly estimated taxes due

If you pay quarterly estimated taxes, circle this date on your calendar: June 15. That’s the payment due date for your second-quarter estimated taxes. Individuals, including sole proprietors, partners and S corporation shareholders, must make estimated tax payments if they expect to owe $1,000 or more in tax when their tax return is filed. In […]

America’s small businesses aren’t ready for a cyberattack

From CNBC – America’s small businesses aren’t ready for a cyberattack – CNBC https://cnb.cx/3LzBiRV If you own a small business, read and take action. You need to prepare for this risk.

IRA rollovers

You can roll over funds from one IRA to another tax free as long as you complete the rollover within 60 days. What if you miss the deadline? You may owe tax and an early distribution penalty if you’re under age 59½. The IRS may waive the penalty if there are extenuating circumstances. In a […]

The Tax Gap

Have you ever heard about the “tax gap” and wondered what it is? According to the IRS, “the gross tax gap is the difference between true tax liability for a given period and the amount of tax that is paid on time.” The tax agency explains that estimates consistently show the United States “enjoys a […]

Passive Activity Losses

Generally, a loss from real estate activities is a passive activity loss (PAL). A PAL is only deductible from passive income unless the taxpayer qualifies as a “real estate professional.” That means the taxpayer must prove that at least 750 hours of service during the year involved real estate. In one case, an HVAC business […]

New business income payment threshold coming

If you receive business income payments through third-party payors, 2022 might be a game changer for your taxes. If these payments total at least $600 for the year, payors such as Zelle and Venmo are now required to file a Form 1099-K with the IRS. Previously, the threshold was $20,000. Some members of Congress want […]

iRS destroyed 30 million information returns

Recently, the Treasury Inspector General for Tax Administration (TIGTA) audited the IRS because of its processing backlog and destruction of 30 million information return records (which it uses to identify taxpayers who don’t accurately report their income). TIGTA recommends that the IRS “establish processes and procedures to identify and address corporate, employer, and Heavy Highway […]

New regulations coming

You knew it was coming! Digital assets, including cryptocurrencies and nonfungible tokens, are likely to be subject to new regulations soon. The Joint Chiefs of Global Tax Enforcement currently is exploring ways to prevent digital asset-based tax crimes and money laundering. Proposed solutions include intelligence-sharing and coordinated investigation and enforcement actions. Meanwhile, the U.S. Financial […]

IRS update on delays

Many officials and groups have already weighed in on the IRS’s various pandemic-related delays and administrative problems. Now, National Taxpayer Advocate Erin Collins is recommending that the IRS extend the window for taxpayers to claim refunds and waive the time limit for filing refund suits. In normal times, taxpayers can generally request a credit or […]