Whistleblower settlement in the news

A recent $263 million tax whistleblower settlement marks one of the biggest cases of its kind. The complex investigation involved three unrelated whistleblowers who will split an award of 30% of the recovered amount (a net $74 million after accounting for a mandatory sequestration reduction). Tax whistleblowers are generally entitled to awards of 15% to […]

IRS opens another Employee Retention Credit Voluntary Disclosure Program

The IRS’s second Employee Retention Credit Voluntary Disclosure Program (ERC-VDP) is available until Nov. 22, 2024. It’s designed to help companies repay ERCs they received erroneously. The second ERC-VDP is a little different from the first program. Now, taxpayers can only apply for tax periods in 2021. (ERC money received in 2020 isn’t eligible for […]

The Budget Deficit grows

According to the Congressional Budget Office (CBO), the federal budget deficit for the first 11 months of fiscal year 2024 was $1.9 trillion. That’s $372 billion more than the deficit recorded during the same period last fiscal year. Breaking the CBO’s numbers down further, revenues were $420 billion (or 11%) higher and outlays were $793 […]

Stopgap bill passes keeping the government open

Congress has passed a stopgap bill that will fund the federal government through Dec. 20. The bill will avoid a partial government shutdown just weeks before the Nov. 5 election that would have shuttered many government services and resulted in the furloughs of thousands of federal employees. In a nutshell, the bill keeps the government’s […]

Can’t pay your taxes?

Whether you’re wealthy or middle class, it’s possible you could hit hard financial times, including being temporarily unable to pay tax debt. In that situation, contact us or the IRS to discuss your options. One option may be to request a temporary delay of collection processes. If a detailed review of your financial status and […]

Tax Court rules on omission of income

Owners of pass-through businesses must report income received on their individual tax returns, where it’s taxed as ordinary income. One married couple who had complex legal and financial issues was audited by the IRS. Evidence showed they received consulting fees of $1.2 million from an LLC they owned. That company deducted the fees as an […]

National Taxpayer Advocate responds to criticisms

The National Taxpayer Advocate Erin Collins is responding to phone service criticisms made by the Treasury Inspector General for Tax Administration. In a blog post (https://bit.ly/47F2X0d), Collins acknowledged that the Tax Advocate Service (TAS) isn’t resolving cases, providing updates or returning phone calls as quickly as she’d like. She noted an 18% increase in TAS […]

Per diem rates for 2024-2025 released by the IRS

The IRS has released new 2024–2025 special per diem rates for expenses incurred when traveling away from home. They include the 1) transportation industry meals and incidental expenses (M&IE) rates, 2) incidental expenses only deduction and 3) list of high-cost localities used in the high-low substantiation method. Although employers can pay workers more than the […]

The Alternative Fuel Vehicle Refueling Property Credit

The IRS has issued proposed regulations regarding the Alternative Fuel Vehicle Refueling Property Credit. The Inflation Reduction Act amended the credit for qualified alternative fuel vehicle refueling property. (These properties generally consist of battery-powered electric vehicle recharging stations.) The changes apply to qualified alternative fuel vehicle refueling property placed in service after Dec. 31, 2022, […]

Here we go again…another budget impass

Federal government funding is set to run out on Oct. 1. If Congress doesn’t reach an agreement, a partial federal government shutdown will occur. Eager to avoid this outcome during the run-up to the Nov. election, lawmakers have been crafting a continuing resolution to temporarily fund government agencies. Speaker of the House Mike Johnson (R-LA) […]