IRS audits

If you’re worried about an IRS audit, there’s good news! According to a recent Government Accountability Office report, audits of individuals between 2010 and 2019 decreased for all income brackets, from 0.9% to 0.25%. Higher-income taxpayers experienced the biggest decline in audits, probably because they require more IRS staff review and resources. Lower-income audits, on […]

New Mexico wildfires

The IRS is providing disaster tax relief to victims of the New Mexico wildfires and straight-line winds that began April 5. The tax agency announced that the relief applies to taxpayers who live or have a business in Colfax, Lincoln, Mora, San Miguel and Valencia counties. Affected taxpayers will now have until August 31, 2022, […]

Will there be an increase in standard mileage rates?

Democrats in the U.S. House of Representatives have asked IRS Commissioner Charles Rettig to increase the 2022 standard mileage rate used to deduct the cost of operating a vehicle for business purposes. The legislators cited the rise in gasoline prices in the months since the IRS issued the latest rates as a reason to increase […]

The Trust Fund Recovery Penalty

Businesses that withhold taxes from employees and others but don’t pay them over to the IRS may face a penalty equal to 100% of the unpaid tax. The Trust Fund Recovery Penalty (TFRP) can be assessed personally against “responsible” parties, even non-owners. When the treasurer of an airline-related business was hit with the TFRP on […]

IRS document destruction update

In a recent audit, the Treasury Inspector General for Tax Administration announced the destruction of 30 million information returns filed with the IRS. The IRS now admits destroying the returns due to system constraints. The agency was required to process the backlog of documents by the end of the calendar year in which they were […]

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 […]