The recent reduction in funding allocated to the Internal Revenue Service (IRS) under the Inflation Reduction Act of 2022 is not anticipated to have significant immediate consequences for the agency’s plans, according to an IRS official. Although over $21 billion of the allocated funds was rescinded or repurposed, leaving approximately $60 billion remaining, the IRS
If you have filed an amended tax return with the IRS, don’t expect a quick response. In the aftermath of the COVID-19 pandemic, the Internal Revenue Service (IRS) has made significant progress in processing paper original tax returns. However, the agency continues to grapple with a substantial backlog of unprocessed amended returns, as reported by
IRS Struggles to Resolve Amended Return Backlog Read More »
The IRS Independent Office of Appeals, in collaboration with the National Taxpayer Advocate, is reaching out to the public to gather feedback on how it can enhance conference options for taxpayers and their representatives. This initiative aims to provide improved accessibility and convenience to individuals who are not located near an Appeals office, as well
IRS Gathering Ideas to Enhance Taxpayer Experience Read More »
UPDATE: The debt ceiling and budget cuts package passed by Congress on May 31 rescinded $1.4 billion given to the IRS in the Inflation Reduction Act and includes a separate agreement to take $20 billion from the IRS over the next two years and divert those funds to other non-defense programs. With fewer discretionary funds at
As the world gradually recovers from the impact of the COVID-19 pandemic, the Internal Revenue Service (IRS) has announced its plans to resume issuing collections notices to taxpayers, after a suspension period to alleviate the financial burden faced by individuals and businesses during the crisis. While an exact date for the resumption of these notices
IRS Resumes Collections Notices as Pandemic Measures Ease Read More »
Have you gotten a notice that QuickBooks is no longer going to support your 2020 desktop application? Don’t panic. You can continue working on a desktop version of the software if you are not yet ready to move to QuickBooks Online. However, this may not be the case forever, so it might be time to
Navigating QuickBooks Desktop Changes Read More »
In April, Connecticut lawmakers proposed a comprehensive tax cut plan that could have a significant impact on the lives of low-income residents, especially those living in neglected neighborhoods. The proposed plan includes income tax cuts for all CT residents and a three-year exemption for some residents of “high poverty” census tracts. The tax exemption is
Lawmakers Propose Sweeping Tax Cut Plan for Low-Income Filers in Connecticut Read More »
What do you do if you are suddenly giving a substantial budget increase? The American Institute of CPAs (AICPA) thinks the IRS should focus more on taxpayer service. In a letter to the Internal Revenue Service (IRS) and the Department of the Treasury, the AICPA is urging the IRS to place greater emphasis on taxpayer
IRS Urged to Focus on Customer Service with New Funds Read More »
The Internal Revenue Service (IRS) has been urged by the American Institute of CPAs (AICPA) to provide guidance regarding the tax implications of digital asset losses. In a statement, AICPA Director for Tax Policy & Advocacy, Eileen Sherr, said, “With the complexities and recent bankruptcies involved with digital asset exchanges, taxpayers and practitioners are facing
AICPA Requests Tax Treatment Guidance for Digital Asset Losses Read More »
The IRS has identified abusive tax avoidance schemes as one of the “Dirty Dozen” scams and schemes that taxpayers and tax professionals should watch out for. These schemes are primarily aimed at high-income individuals who want to reduce or eliminate their tax obligations. To avoid falling prey to these schemes, the IRS advises taxpayers to
Watch Out for Tax Avoidance Schemes Aimed at High Earners Read More »
The U.S. Government Accountability Office (GAO) has suggested measures to reduce the tax gap and improve fiscal benefits, even with a small reduction in the gap between what is owed and what is paid. According to a GAO “snapshot” report released on February 27, 2023, Internal Revenue Service data for the years 2014-2016 revealed that
GAO Wants to Reduce Tax Gap Read More »
The annual Dirty Dozen list of tax scams has been updated by the IRS to include promoter claims surrounding Employee Retention Credits (ERC) that have been circulating widely. These claims can be based on inaccurate information related to eligibility and calculation of the credit. It is important to note that eligible taxpayers can claim the
ERC Scams Added to IRS Dirty Dozen Read More »