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
Warning Signs of Questionable Employee Retention Credit Claims Read More »
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 »
Saving for your children’s college education became much easier when 529 plans were introduced. The ability to access funds in a 529 plan without paying federal taxes, as long as the funds were used to cover qualified education expenses, make them appealing to parents of college-bound children. However, some found it difficult to determine how
New College Saving Opportunity: Converting 529 Plans to Roth IRAs Read More »
The Internal Revenue Service (IRS) has recently announced a significant update for taxpayers, providing much-needed relief for those affected by the COVID-19 pandemic. Specifically, the IRS is offering automatic penalty relief for taxpayers who failed to pay their income taxes for the tax years 2020 and 2021. This relief is part of the IRS’s efforts
The IRS has recently finalized regulations that provide clarity and relief for businesses and individuals regarding the penalties for inaccuracies in information returns and payee statements. These final regulations, effective for documents required on or after January 1, 2024, solidify the IRS’s stance on de minimis error safe harbors under Code Sections 6721 and 6722,
Navigating New IRS Regulations: Understanding De Minimis Error Safe Harbors Read More »
In a recent update that underscores the effectiveness of heightened compliance activities, the Internal Revenue Service (IRS) has made a significant impact on tax collection from high-net-worth individuals. Commissioner Daniel Werfel reported that, thanks to increased scrutiny on millionaires suspected of tax evasion, the IRS has successfully collected $482 million thus far. This announcement came
IRS’s Aggressive Compliance Measures Bring in Over $500 Million from Millionaires Read More »