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 […]
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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 ยป
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 ยป
The IRS has issued final regulations regarding electronic filing (e-filing) of certain returns and documents. The regulations apply to those who must file returns for partnerships, corporations, unrelated business income tax, withholding, excise taxes, as well as information returns, disclosure statements, and other documents. The electronic filing requirements generally take effect for applicable returns and
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The White House has proposed a 15 percent increase in the Internal Revenue Service’s (IRS) budget for Fiscal Year 2024. The proposed increase would give the agency $16.3 billion in discretionary budget authority, with most of the funds directed towards enhancing customer service and outreach to underserved communities. The IRS budget includes a $642 million
Biden Requests 15% Increase in IRS Budget Read More ยป
If you own a home in Connecticut, you know that property taxes can add up. But did you know that qualifying seniors and the disabled can take advantage of a tax credit program and reduce or eliminate what they pay? Seniors The property owner or spouse can apply for tax relief the year after turning
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The IRS recently announced it is allocatingย $10 billion of credits for qualified investments in eligibleย advanced energy projects. A minimum of $4 billion of these credits may be allocated only to projects located in certain areas.ย The guidance announcing theย programย also: Defines the meaning of qualifyingย advanced energy project, specified advanced energy property, eligible property, the placed in service
IRS Allocates $10 Billion in Credits for Advanced Energy Projects Read More ยป
The IRS has made an announcement that taxpayers who electronically file their Form 1040-X, the Amended U.S Individual Income Tax Return, will now have the option to choose direct deposit for any resulting refund. This is a new development as taxpayers were previously required to wait for a paper check, which added more time to
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The IRS has issued clarification regarding the federal tax status of special payments made by 21 states in 2022. Taxpayers in many of these states will not be required to report these payments on their 2022 tax returns. Disaster Relief & General Welfare Payments Payments made for the promotion of general welfare or as disaster
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The Treasury Department and the IRS have provided guidance announcing that they intend to issue proposed regulations to address the application of the new one-percent corporate stock repurchase excise added by the Inflation Reduction Act of 2022. Excise Tax on Stock Repurchases Beginning in 2023, a publicly traded U.S. corporation is subject to a one-percent
Treasury & IRS Issue Guidance on Corporate Stock Repurchase Excise Tax Read More ยป
With Republicans taking over House of Representatives leadership comes new rules that could have implications on tax policy. Adopted on January 9, 2023 almost exclusively along party lines, are two key provisions that could impact tax policy in at least the next two years. First is the need for a supermajority of lawmakers to vote
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After the IRS made a rare midyear increase to the standard mileage rate last year, we weren’t sure if we’d see another one for 2023. But good news, the rate to calculate the deductible costs of operating a vehicle for business purposes increased by 3 cents to 65.5 cents per mile, effective January 1, 2023.
Standard Mileage Rate Increase for 2023 Read More ยป