Tax avoidance or tax evasion?

Do you know the difference between tax avoidance and tax evasion? Tax avoidance is taking legitimate actions to reduce your tax bill, such as funding an IRA or appropriately claiming a tax credit. Tax evasion is a deliberate failure to comply with the tax law. It includes actions such as falsifying tax records, inflating expenses […]

Act fast if you want to expense equipment in 2024

Businesses must act fast if they plan to take the valuable Sec. 179 expense deduction this year. In 2024, you can expense up to $1.22 million in qualified assets. The deduction begins to phase out when 2024 qualified asset additions exceed $3.05 million. (In 2025, these limits rise to $1.25 million and $3.13 million, respectively.) […]

Protect your identity with an IP PIN

The IRS’s IP PIN program, which is intended to help prevent tax identity theft, is being put to new use this coming tax season. In the past, the IRS rejected e-filed returns that claimed dependents already claimed on another return. The rejected returns were required to be refiled on paper. But in 2025, taxpayers can […]

Don’t forget your RMD

Time is running out if you’re age 73 or older and haven’t yet taken this year’s required minimum distributions (RMDs) from retirement plans such as IRAs and 401(k)s. If not withdrawn on time, RMDs are generally subject to a 25% excise tax on the amount the taxpayer should have withdrawn. If you reached age 73 […]

IRS-CI releases 2024 Annual Report

The IRS Criminal Investigation (IRS-CI) released its fiscal year 2024 Annual Report. It details significant cases involving crimes ranging from tax fraud to cybercrime, enhanced domestic and foreign partnerships, and investigative statistics. IRS-CI obtained 1,571 convictions with a conviction rate of 90%. Investigations identified $2.12 billion in tax fraud and another $7.03 billion from other […]

Injunction halts BOI reporting

Under the Corporate Transparency Act, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) requires small business owners to report certain information. The requirements are intended to help prevent criminals from using businesses for illicit activities. They mandate businesses to provide beneficial ownership information (BOI) about their owners to FinCEN. The deadline to file a BOI […]

A new School year is coming soon

The start of another year isn’t far off. With it comes a new school semester and possibly new tuition bills. If you’re thinking about helping a grandchild or other student with their college expenses, consider the tax implications. If the amount you give exceeds the annual gift tax exclusion, you might owe gift tax on […]

Is your passport at risk?

Seriously delinquent tax debt (SDTD) could put your passport at risk (unless an exception applies). SDTD is a legally enforceable, unpaid federal tax assessment. In 2024, this debt must exceed $62,000, with a lien filed and other remedies exhausted. In 2025, the threshold will rise to $64,000. These debts include U.S. individual income taxes, trust […]

Be wary of online tax advice

Despite IRS warnings, many taxpayers continue to be duped by bad online tax advice. The tax agency and its Security Summit partners are renewing alerts about false social media claims “that promise to magically enrich taxpayers.” In particular, taxpayers are warned about claiming credits, including a nonexistent “Self Employment Tax Credit” and the Fuel Tax […]

Long to be nominated for IRS Commissioner

President-Elect Trump has announced he’ll nominate former Missouri Rep. Billy Long to be IRS Commissioner. Current leader Danny Werfel is scheduled to remain in the position until 2027. But Trump plans to replace Werfel with Long before his term ends. Werfel has overseen some IRS modernization efforts made possible by Inflation Reduction Act (IRA) funds. […]