Should I amend my tax return?

You filed your tax return and breathed a sigh of relief. Then you realize that you forgot to include something important. In general, you can file an amended return and claim a refund within three years after your original return is filed, or two years after paying the taxes, whichever is later. So, if you […]

Trying to preserve assets can qualify as a profit motive for theft loss deduction

The Tax Cuts and Jobs Act eliminated a deduction for many consumer fraud losses through 2025. Now, taxpayers can only deduct casualty and theft losses associated with federally declared disasters or “transactions entered into for profit.” So some fraud victims may get hit twice, first by theft and second by taxes on stolen retirement funds […]

April 15 deadline was the 70th anniversary of filing on that date

Did you know that 2025’s Tax Day marked the 70th anniversary of filing federal income tax returns by an April 15 due date? Between 1918 and 1955, the deadline was March 15. As the tax code became more complex, Tax Day was moved back to give taxpayers, tax professionals and the IRS additional time to […]

Check your 2025 withholding

The tax filing deadline has passed, and you’d probably like to put taxes out of your mind. That’s understandable. However, it’s worth your while to ensure that your 2025 withholding amount is correct. Did you receive an unexpected tax bill for 2024? If so, consider providing your employer with a new Form W-4 to have […]

Late with reasonable cause?

Did you miss the federal income tax filing deadline? Do you owe the IRS money? If so, there may be some wiggle room if you can show “reasonable cause” for not filing and paying on time. You’ll also need to make a “good faith” payment as soon as possible. Taxpayers with reasonable causes typically include […]

The Trust Fund Recovery Penalty

Employers who withhold but willfully fail to remit payroll taxes to the IRS can face a penalty equal to 100% of the unpaid amount. The Trust Fund Recovery Penalty (TFRP) can be assessed personally against individuals deemed “responsible.” In one case, a chairperson and board member of a school was found to have willfully failed […]

Tax refund stolen?

What can you do if your tax refund is stolen? According to the IRS National Taxpayer Advocate (NTA), this happens to tens of thousands of taxpayers each year. The NTA offers steps to take and warns that recovering a stolen refund is a slow process. If you were expecting your refund by direct deposit and […]

IRS layoffs ongoing

IRS layoffs and voluntary separation programs are ongoing. It’s estimated that the agency’s staff could ultimately shrink by 25% or more. Such cuts may have consequences for tax collection. The IRS took in approximately $5.1 trillion in tax revenue in fiscal year 2024. Without adequate staffing to investigate tax evaders, revenues could fall. According to […]

Debt cancellation income

If a credit card company or mortgage lender cancels your debt, it could result in taxable income that you must report to the IRS. Your lender will mail you Form 1099-C with the amount of canceled debt for you to report as ordinary income on your income tax return. However, certain exceptions or exclusions (https://bit.ly/3XXW2vG […]

China announces reciprocal tariffs

The global trade war has escalated as China announced a reciprocal tariff on American-made products. On April 11, China increased the tariff on U.S. goods from 84% to 125%. The tariff will begin on April 12 and affect U.S.-produced products such as soybeans, drugs and aircraft. For goods from most countries, President Trump recently announced […]