Miss the Deadline?

The second quarter estimated tax payment deadline arrived. If you make quarterly payments, you have until June 16 to pay and avoid possible underpayment penalties. If you don’t currently make estimated payments, should you? In general, individuals should make payments if they expect to owe $1,000 or more ($500 for corporations) when they file their […]

Will my summer job come with a tax obligation?

Teenagers with summer jobs may not think they’re being paid enough to have tax obligations. But anyone with self-employed income over $400 (earned, for example, by babysitting or mowing lawns) is required to file an income tax return and pay self-employment tax. If a teen has a job through an employer who withholds payroll taxes, […]

IRS audit rates

During his administration, former President Biden repeatedly promised higher IRS audit rates for wealthy, but not middle-income, taxpayers. Recently released IRS data suggests he kept his word. For tax returns filed in 2023 and audited in 2024, the audit rate was 0.8% for all taxpayers. But those making over $500,000 were audited at twice the […]

House Bill permanently increases Estate exemption threshold

The One, Big, Beautiful Bill, recently passed by the U.S. House, would provide wealthy families some certainty regarding their estates if it’s enacted. The current unified federal gift and estate tax exemption amount, adjusted annually for inflation, is set to expire after 2025. This year, it allows individuals to shelter $13.99 million from gift and […]

SALT limit a sticking point in the Senate

The U.S. House passed The One, Big, Beautiful Bill in May. Senate Republicans are currently debating their version of the tax and spending bill. With slim majorities in both the House and Senate, Republicans can’t afford to lose too many votes. So, what provisions of the bill are proving to be sticking points? One major […]

1099-K threshold changes in House Bill

While Congress continues to debate The One, Big, Beautiful Bill, one provision has gotten little attention. Generally, taxpayers who sell goods and services will receive a Form 1099-K (Payment Card and Third Party Network Transactions) from platforms they use. A previous law, the American Rescue Plan Act, significantly lowered the threshold that triggers issuance of […]

QBI would be made permanent in House Bill

Currently, eligible small business owners may be able to claim a tax deduction based on their qualified business income (QBI) and certain other income. The deduction can be for up to 20% of their QBI, subject to limits as income rises. Eligibility begins to phase out at $394,600 for married joint filers and $197,300 for […]

Data Book covers IRS 2024 Tax Collections

One of the topics covered in the IRS’s recently released 2024 Data Book (https://bit.ly/3Us8cvC ) is tax collection. During fiscal year (FY) 2024, the agency’s collections function recovered close to $77.6 billion, an increase of 13.6% over FY 2023. These collections generally represent federal taxes that’ve been reported or assessed but not paid (as well […]

Report on Tariffs effect on economic growth

President Trump’s tariffs will take a toll on economic growth, according to a new report (https://bit.ly/4dPqpuY ) from the international Organization for Economic Co-operation and Development (OECD). The group estimates that GDP growth in the U.S. will weaken from 2.8% in 2024 to 1.6% in 2025 and 1.5% in 2026. Global growth could decrease from […]

Corporate AMT guidance

The corporate alternative minimum tax (CAMT) currently imposes a 15% minimum tax on the adjusted financial statement income (AFSI) of applicable large corporations. CAMT generally applies to large corporations with average annual financial statement income exceeding $1 billion. The IRS has issued interim guidance (Notice 2025-27) aimed at simplifying CAMT calculations, following feedback that pending […]