The War in Ukraine, an update…

U.S. Treasury Secretary Janet Yellen recently warned lawmakers that the global economy can expect “enormous repercussions” from the war in Ukraine. In testimony before a congressional committee, Yellen explained that spillover from the war is heightening economic vulnerabilities in many countries already facing higher debt burdens and limited policy options as they recover from COVID-19. […]

How does the IRS contact you?

During this busy tax season, the IRS is reminding individuals how it will and, more importantly, won’t contact taxpayers. If the IRS needs to contact you, typically it first delivers a letter through the mail. The agency may call after mailing a notice to confirm an appointment or to discuss an audit. Also, in certain […]

403(b) Retirement Plans

403(b) retirement plans are available to employees of schools, colleges, religious entities and other tax-exempt organizations. For some employees, 403(b) accounts are their main retirement saving vehicles, although others supplement them with other plans. In a recent report, the Government Accountability Office found that the fees associated with 403(b) plans “varied widely” depending on the […]

TIGTA audit of IRS cost tracking

How well is the IRS tracking some of its own costs? Recently, the Treasury Inspector General for Tax Administration (TIGTA) audited cost tracking in the IRS Private Debt Collection (PDC) program, which began in 2017. For fiscal years 2017–2019, the IRS assigned tax receivables valued at nearly $22.6 billion to private collection agencies. TIGTA found […]

April 18 is the deadline for the first quarter estimated tax payment

The due date for the first estimated tax payment for 2022 is rolling up fast. April 18 is the deadline to pay the first installment of 2022 estimated taxes, as well as the deadline to file your 2021 individual tax return. Who must pay estimated tax? Generally, individuals who have taxable income that isn’t subject […]

The ERC and wages paid to related employees

Employees of family-owned businesses may not be eligible for the Employee Retention Credit (ERC). This credit was enacted to encourage eligible employers to keep employees on their payrolls during the pandemic. It was in effect for most employers through Sept. 30, 2021 (startup recovery businesses could claim it through Dec. 31, 2021). However, wages paid […]

2018 Tax return year closing

If you or someone you know didn’t file a 2018 federal income tax return, time is running out to claim a refund for that year. According to the IRS, $1.5 billion in refund money has yet to be claimed by more than one million taxpayers. To file, you must mail a 2018 paper return no […]

Classroom out-of-pocket expense deduction increases for teachers

In the big picture, $50 may not seem like a lot. But put into the context of the educator expense deduction, it’s notable. Why? Because for 2022, eligible teachers and other educators can deduct up to $300 of out-of-pocket classroom expenses. The $50 increase is the first since the deduction was enacted in 2002. The […]

Proposed changes to the Affordable Care Act

The IRS has proposed changes to the Affordable Care Act’s family coverage and affordability rules. In a nutshell, the proposed regs would change how to determine the affordability of employer-sponsored coverage for an employee’s family. More specifically, the affordability of family coverage would be based on the employee’s share of the cost of covering the […]

Puerto Rico disaster relief

The IRS is providing disaster tax relief to victims of severe storms in Puerto Rico. This includes those hit by storms, flooding and landslides that started on Feb. 4, 2022, in the Puerto Rico municipalities of Catano, Dorado, Toa Baja, Vega Alta and Vega Baja. Affected individuals and businesses now have until June 15, 2022, […]