Pushback to changing the Inflation Reduction Act

President-Elect Donald Trump has promised to dismantle the Inflation Reduction Act (IRA), saying he’ll target unspent tax incentives earmarked for clean energy manufacturing. But the likely Republican-controlled U.S. Congress may push back. Many green energy projects benefitting from IRA tax breaks are in progress in Republican districts. In August 2024, 18 House Republicans formally asked […]

IRS proposes shortening statutory 45-day notice

If the IRS contacts you about a specific tax matter, you can authorize a third party to handle it on your behalf. It could be a relative, friend or a tax pro at our firm, as long as you grant formal permission. Current rules require the IRS to provide a 45-day notice when it intends […]

BOI reporting update

Certain U.S. small business owners must report beneficial ownership information (BOI) to the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) by Jan. 1, 2025. In a recent letter to FinCEN, 44 House Republicans urged the agency to delay the reporting deadline. The letter states that “without a delay in the effective date, millions of […]

Happy Thanksgiving

“What if, today, we were grateful for everything?” – Charlie Brown Well said Charlie Brown, well said…. Wishing you a safe and Happy Thanksgiving from all of us to you.

The Trust Fund Recovery Penalty

Employers that withhold taxes from employee wages but don’t pay them over to the IRS may face a penalty of 100% of the unpaid tax. The Trust Fund Recovery Penalty (TFRP) can be assessed personally against “responsible” parties. In one case, the owner of three masonry companies was assessed a TFRP of $650,000 for failing […]

Corporate tax rate outlook

Among the tax changes proposed by President-Elect Donald Trump is a revamping of the corporate income tax rate. The rate is currently 21%, which was intended to be permanent under the Tax Cuts and Jobs Act. However, Trump is proposing to drop it to 20% or 15% to stimulate economic growth. To encourage domestic production, […]

Changes to Puerto Rico benefits explored

Back in 2012, Puerto Rico enacted a law (Act 22) to attract wealthy mainland individuals to invest in its communities. In exchange, Puerto Rico and a U.S. tax code provision provide certain tax benefits to Americans who buy homes there. However, the law has driven up local housing prices and reduced tax income. In response, […]

Will the tariff proposals be implemented?

One tax-related proposal of President-Elect Trump is to increase tariffs on foreign imports. On the campaign trail, he said he would impose a 10% to 20% tariff on most imported goods, a 60%-or-more tariff on Chinese products and a 100% tariff on vehicles from Mexico. His position is that tariffs would boost U.S. manufacturing and […]

Is it ordinary and necessary?

Business owners can generally deduct “ordinary and necessary” business costs, including eligible legal fees. In one U.S. Tax Court case, a taxpayer argued he was entitled to deduct nearly $600,000 in legal expenses on his return. He claimed the expenses were related to a fraud loss at an investment company where he worked as the […]

Trump proposes changes to R&D credit

One of the many tax changes proposed by President-elect Donald Trump is to expand the Section 174 deduction for R&D expenditures. Under the Tax Cuts and Jobs Act (TCJA), R&D expenditures paid or incurred beginning in 2022 must be capitalized and amortized over five years for domestic R&D and over 15 years for foreign R&D. […]