Senators suggest auditing more tax exempt hospitals

Senators Elizabeth Warren (D-MA) and Chuck Grassley (R-IA) have long expressed concerns about the tax-exempt status of nonprofit hospitals. The lawmakers recently sent a letter to the IRS reiterating earlier allegations that while nonprofit hospitals are required to provide a “community benefit,” some have restricted care and increased costs. To remedy the situation, the lawmakers […]

Get a jump start on tax season

Would you like to get a jumpstart on your 2024 federal tax return? You can create or access an IRS Online Account (https://bit.ly/4fpNBjW ) to review your historical tax records, request a personal identification number and view any new tax information. In addition, start gathering tax records, including relevant receipts and invoices. You’ll want to […]

House passes bill to fight terrorism

The U.S. House of Representatives passed legislation that would give the Treasury Dept. authority to strip the tax-exempt status of nonprofit organizations it claims support terrorism. According to the Congressional Research Service, the Stop Terror-Financing and Tax Penalties on American Hostages Act would create a new category of “terrorist supporting organizations.” Any organization the Treasury […]

ERTC Voluntary Disclosure Program update

The IRS’s second Voluntary Disclosure Program for employers who claimed improper COVID-related credits ended Nov. 22. However, certain programs for businesses with Employee Retention Tax Credit (ERTC) claims that haven’t been processed remain open. The Claim Withdrawal Program is available for businesses that request the IRS not process ERTC claims that haven’t yet been paid. […]

Beware of Scams

Business owners who are preparing to file Beneficial Ownership Information (BOI) reports by Jan. 1, 2025, should be alert. The U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) is warning of scams designed to steal sensitive information by targeting BOI filers. Scammers may reference fake forms, such as “Form 4022” or “Form 5102,” or they […]

Feeling charitable?

If charitable giving is on your mind, consider a tax reduction strategy called “bunching.” Only donations to IRS-approved charities are deductible, and only if you itemize. However, itemizing is less common since the standard deduction nearly doubled (for 2018-2025, unless extended by Congress). Bunching may allow you to benefit from the standard and itemized deductions […]

SCOTUS declines to review bankruptcy case

The U.S. Supreme Court has declined to review a decision in which a taxpayer who filed for Chapter 7 bankruptcy sought to discharge his tax liabilities. According to the Bankruptcy Code, tax debts are dischargeable only if a debtor has filed a “return.” This taxpayer, however, didn’t file timely IRS returns for any of the […]

IRS update

Tax collection is one of the many government functions likely to be affected by the upcoming Republican “trifecta” (control of the presidency, U.S. Senate and U.S. House). The Inflation Reduction Act secured nearly $80 billion for the IRS to increase compliance rates, upgrade technology and make new hires through 2031. But Republicans have repeatedly called […]

Reminder – BOI reporting is due by January 1st

Many companies created or registered to do business before Jan. 1, 2024, must e-file their initial beneficial ownership information (BOI) reports by Jan. 1, 2025. This generally means reporting the names and other information about those who own or control the company. Exceptions and special rules apply. The report is filed with the U.S. Treasury […]

Lame-duck Session may address some minor tax bills

Republicans are set to take control of both chambers of Congress next January. The consensus on Capitol Hill is that there’s little chance of major tax legislation being passed until then. However, there may be an opportunity during the rest of the lame-duck session to consider minor tax bills. According to Eric LoPresti, tax counsel […]