Update for energy production credits

The IRS has just published new inflation adjustment factors and reference prices for determining Code Sec. 45 energy production credits. This credit generally is available to qualified renewal electricity producers. For 2022, the inflation adjustment factor for qualified energy resources is 1.8012 and the reference price for facilities producing electricity from wind is 4.09 cents […]

Qualified Opportunity Funds review by IRS

The Qualified Opportunity Zone (QOZ) program allows investors to make long-term investments in distressed communities. More specifically, it allows investors who recognize capital gains to reinvest those gains in Qualified Opportunity Funds (QOFs) that, in turn, invest in one of nearly 9,000 designated QOZs. If you’ve made QOF investments, you may soon receive a letter […]

Foreclosure cases

Sometimes to satisfy delinquent tax debt, the IRS pursues foreclosure of a primary residence. Recently, the Treasury Inspector General for Tax Administration (TIGTA) looked at whether the IRS needs to improve its handling of these actions. In 96 lien foreclosure cases over two years ending Sept. 30, 2020, revenue officers generally followed procedures. But in […]

Identity Theft

What happens if a thief steals your identity and files a fraudulent tax return? Although not all fraud can be easily detected, the IRS scans tax returns for possible fraud as they’re received. Returns that are flagged as suspicious will be pulled for extra review. If this happens with your return, you’ll receive an IRS […]

Happy Easter

May God shower you with blessings, love, and peace this Easter.From all of us to you; have a wonderful Easter celebration.

Tax Court rules on accrual business accounting

U.S. businesses must generally follow strict rules in how they report income and expenses. One key rule is the matching principle, which requires that income and related expenses be reported in the same period. Even when a business strictly adheres to “generally accepted accounting principles” (GAAP), the IRS might challenge it. In one case, the […]

Did you owe tax?

The 2021 tax filing season is nearly over, with the April 18 tax filing deadline fast approaching. If you’ve filed your return, were you unpleasantly surprised to learn that you owed the IRS money? Or perhaps you thought your refund was too small or too big? If this was the case, your withholding adjustments might […]

The GAO reviews the IRS

The IRS’s recent woes are well documented. So it’s probably no surprise that the Government Accountability Office (GAO) is recommending changes. In a report assessing the 2021 tax season, the GAO notes problems. For example, online refund information was limited and in-person services declined. The GAO suggests such steps as modernizing the “Where’s My Refund” […]

An IP PIN can protect your identity

Thanks to ongoing efforts by the IRS, state agencies and the accounting industry, tax fraud schemes where criminals use stolen identities to file for refunds are becoming less prevalent. One way you can protect yourself is by requesting an Identity Protection PIN (IP PIN) from the IRS. This is a six-digit number that must be […]

IRS shows methods available to pay your tax bill

From the IRS: How to Pay Your Taxes https://bit.ly/3vfuvGS A simple tutorial if you need help on how to pay your federal tax bill.