Charitable Giving

With the holiday season kicked off, many are turning their thoughts to making charitable donations. Suppose you own or are a beneficiary of an IRA and you’re at least 70½ years old. In that case, you can make qualified charitable distributions (QCDs) of up to $105,000 in tax-free charitable donations during 2024. That’s up from […]

RMDs due by December 31st

Taxpayers born before 1951 need to take required minimum distributions (RMDs) by Dec. 31, to avoid penalties. RMDs are the mandatory withdrawals from many retirement plans and IRAs, including SIMPLE IRAs and SEPs. Roth IRAs aren’t subject to RMDs during the owners’ lifetimes. RMDs are taxable income and can incur penalties if not withdrawn on […]

A reminder to check your withholding

As we get closer to the end of the year, employees only have a few paychecks left for 2024. If you’re an employee who received a surprise tax bill – possibly with penalties – for the 2023 tax year, consider checking your withholding to ensure it’s sufficient. The IRS provides an online withholding estimator tool […]

Is a capital gain rate reduction in the future?

Before the recent election, it was possible that capital gains tax rates might go up for some taxpayers in the near future. Now, with the Oval Office and both houses of the U.S. Congress soon to be in Republican hands, there’s a significant chance rates will be reduced. Currently, long-term gains (on investments held more […]

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, […]