The IRS has recently extended the tax relief on required minimum distributions (RMDs) for inherited individual retirement accounts (IRAs) and annuities through 2024. This extension is part of a series of reliefs that began in 2021, aiming to alleviate financial stress for beneficiaries during the regulatory transition period. Under Notice 2024-35, the IRS specifies that […]
RMD Relief Extended for 2024 Read More »
A significant legislative change is on the horizon for Connecticut residents that owe back property taxes. House Bill 5144, currently advancing to the House floor, proposes to reduce the interest rate on delinquent property taxes once they are sold to third-party entities. The bill aims to lower the interest rate from the longstanding 18% to
Lower Interest Rates on Delinquent Property Taxes Heads to CT House Read More »
Connecticut’s ongoing debate on the phase-out of the state car tax reveals deep concerns and varying opinions among stakeholders. The proposed legislation, which suggests eliminating the motor vehicle tax within five years and increasing the property tax assessment rate from 70% to 90% of appraised values, has sparked mixed reactions during recent public hearings. Supporters
CT – Once Again – Discusses Phasing Out Motor Vehicle Tax Read More »
After its success targeting millionaires with unpaid taxes, the IRS has launched a new initiative to improve tax compliance among high-income taxpayers who have not filed federal income tax returns since 2017. This effort, funded by the Inflation Reduction Act, involves sending out IRS compliance letters to more than 125,000 cases where tax returns have not been filed since 2017. These mailings began in
IRS Targeting High-Income Taxpayers with Unfiled Returns Read More »
The IRS granted a temporary electronic filing exemption for Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons. The exemption is automatic, so withholding agents do not need to file an electronic filing waiver request to use the exemption. Under the exemption: Withholding agents (both U.S. and foreign persons) are not required to file Forms 1042 electronically during calendar
Exemption Granted from Electronic Filing for Form 1042 Read More »
The IRS has issued a warning to small businesses regarding potential issues with Employee Retention Credit (ERC) claims as the March 22, 2024 deadline for the ERC Voluntary Disclosure Program approaches. Seven suspicious warning signs have been identified based on feedback from tax professionals and compliance personnel. These signs may indicate erroneous claims and could lead to IRS scrutiny. The ERC Voluntary Disclosure Program allows businesses to rectify incorrect claims by repaying just 80% of the amount claimed. Taxpayers who
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For 2024, the IRS has set new depreciation limits for business-use luxury cars and specific lease inclusion amounts. For vehicles placed in service or leased in 2024, there are distinct caps on depreciation deductions, aimed at managing the cost recovery of high-value vehicles. Vehicles exceeding a certain weight are exempt from these restrictions, encouraging the
Auto Depreciation Caps and Lease Inclusion Amounts for 2024 Read More »
The IRS is expanding its ongoing efforts to improve tax compliance in high income categories with dozens of audits on personal use of business aircraft. Focused primarily on large corporations, large partnerships and other high income taxpayers, they will scrutinize the allocation between business and personal use to ensure accuracy. “During tax season, millions of
IRS Increases Audits on Personal Use of Business Aircraft Read More »
Are you unsure of your tax bracket and looking for ways to reduce your tax burden? Here are some ideas to consider. First, a primer. In the United States, our tax system progresses through seven brackets, meaning as you earn more, your incremental income is taxed at higher rates. The IRS updates these brackets yearly
2024 Tax Brackets & Ways to Move into a Lower One Read More »
The IRS Independent Office of Appeals has recently unveiled its 2024 Focus Guide, which could bring significant changes for anyone currently in a tax dispute or who might find themselves in one in the future. This guide, designed to align with the IRS’s Strategic Operating Plan, aims to enhance taxpayer services and provide a fair
What the 2024 IRS Focus Guide Means for Taxpayers in Disputes Read More »
Recently, the Supreme Court of the United States took up a significant case, Charles G. Moore v. United States, that could impact how certain incomes are taxed. This is especially pertinent for those with investments in foreign companies. What’s the Case About? The case revolves around a change in the tax law from the 2017
Understanding the Supreme Court Case on Taxing Unrealized Income Read More »
The IRS has released its 2024 standard mileage rates for taxpayers who use their vehicles for business, medical, charitable purposes, and certain moving expenses. Understanding these changes is vital for optimizing your tax deductions in the upcoming year. 2024 Standard Mileage Rates Overview The IRS set the following standard mileage rates for 2024: Business Use:
Important Update on 2024 Standard Mileage Rates and Deductions Read More »