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 […]

Proposed enhancment of The Employer-Provided Child Care Credit

One tax-related provision of the proposed One, Big, Beautiful Bill Act (OBBBA) that has slid under the radar is an enhancement of the Employer-Provided Child Care Credit. Currently, tax law provides eligible businesses a nonrefundable, annual tax credit of $150,000 on up to 25% of qualified child care expenses and 10% of qualified resource and […]

Tax tips before heading to the beach

Summer is in sight, and the April tax season is in the rearview mirror. But a few simple tax planning steps during the year can take the headache out of filing your next tax return. You might even end up with a better refund or lower tax bill. Before heading to the beach, take a […]

HSA Changes are in the pending Tax Bill

The fate of The One, Big, Beautiful Bill is still pending. If enacted, it would introduce several health care changes, including increased flexibility for Health Savings Accounts (HSAs). These accounts are used in conjunction with a high-deductible health plan. Under current rules, HSAs can’t be used for fitness expenses, but the bill would permit spending […]

Receive a tax notice?

If the IRS has a question about your tax return, hasn’t received a payment due or has made adjustments to something you’ve filed, it will notify you with a letter or notice sent via the USPS. The letter will provide instructions on how to respond, which might include sending copies of records the IRS requires. […]

How much will deficit rise under proposed tax bill?

Many economic analysts forecast that the U.S. House’s One, Big, Beautiful Bill would increase federal debt, but there’s disagreement over the amount. The Congressional Budget Office has projected that the bill would result in a $2.3 trillion deficit over 10 years. However, the Penn Wharton Budget Model (PWBM) puts the figure at $2.8 trillion, and […]

IRS publishes annual data book

The IRS has published its annual Data Book for fiscal year (FY) 2024. It provides a statistical overview of the tax agency’s operations. A few highlights: In FY 2024, for the first time, revenue collected exceeded $5 trillion ($5.1 trillion), an increase of almost 9% compared to FY 2023’s total of $4.7 trillion. Note: Revenues […]