Draft legislation issued to improve taxpayer experience

Senate Finance Committee Chair Mike Crapo (R-ID) and Ranking Member Ron Wyden (D-OR) recently issued draft legislation they claim will “improve the taxpayer experience.” In a statement, Crapo and Wyden said the proposed draft, dubbed the Taxpayer Assistance and Service (TAS) Act, is intended to “facilitate communication between the [IRS] and taxpayers, streamline processes for […]

Tariffs paused for Canada & Mexico

President Trump announced that 25% tariffs would be imposed on products from Canada and Mexico, effective Feb. 4. But on Feb. 3 after a stock market drop, he announced that tariffs on Mexico would be paused for one month. He also imposed a 10% tax on energy resources from Canada. In addition, he imposed an […]

Can I deduct a home office?

Taxpayers preparing to file their 2024 tax returns may wonder if they qualify for a home office tax deduction. Keep in mind that it comes with specific requirements. Employees working remotely at an employer’s request don’t qualify. Self-employed individuals whose homes serve as their principal place of business may be eligible. However, the portion of […]

What Income do I report on my tax return?

When gathering your tax records, it’s easy to overlook smaller amounts of income. However, taxpayers who are employees must generally include all income, not just the amount they find on an employer-generated W-2 form. For example, did you make goods and sell them on an online marketplace or at a craft fair? Did you sell […]

Penalty-free Early withdrawal? Yes, please

Distributions from IRAs before age 59½ are generally subject to income tax and a 10% penalty. But there are exceptions. For example, first-time homebuyers can withdraw $10,000 penalty-free, and adoptive parents can withdraw up to $5,000 to help pay adoption costs. Victims of federally declared disasters can withdraw up to $22,000, and victims of domestic […]

Congressional Review Act can help overturn regulations

President Trump is expected to try to overturn many of former President Biden’s policies, including tax regulations. Although the U.S. Treasury Department finalized and corrected several Inflation Reduction Act clean energy regulations before Biden left office, the regulations may be relatively easy to reverse. The Congressional Review Act allows Congress to reverse regulations if both […]

BOI reporting remains paused while litigation plays out

In a recent post on its website, the Financial Crimes Enforcement Network (FinCEN) said it’s keeping beneficial ownership information (BOI) reporting voluntary. This comes despite the fact that a Jan. 23, 2025, U.S. Supreme Court ruling halted a Dec. 3, 2024, federal district court’s order barring enforcement of the Corporate Transparency Act’s BOI reporting requirements. […]

Trump renews call for tax-free tips

President Trump recently renewed his call for tax-free tips. He first mentioned eliminating taxes on tips during the 2024 campaign. The proposal was included in the 2024 Republican platform on a more limited basis, calling for tax-free tips “for millions of restaurant and hospitality workers.” But the president’s most recent call appeared to be considerably […]

Did you receive an incorrect W-2?

Many taxpayers are receiving their Forms W-2. But what if you receive an incorrect Form W-2 from a current or former employer? The IRS advises you first to request a correction from the employer. If you haven’t received it by the end of February, contact the IRS to initiate a complaint. What happens next? The […]

New Treasury Secretary Comfirmed

President Trump’s Secretary of the Treasury nominee, Scott Bessent, has been confirmed by a vote of 68-29. Bessent succeeds Janet Yellen, who has headed the Treasury since January 2021. Bessent has stated he supports raising the debt limit, while President Trump wants the limit abolished. As Treasury Secretary, he’ll play a central role in shaping […]