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 »
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 »
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 »
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 »
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 »
If you have received refunds through the Employee Retention Credit (ERC) and are concerned about its legitimacy, a recent development from the IRS could be good news for you. Earlier in 2023, we wrote about how many of the companies offering to help with ERC credits were scams, and how the fraud was so rampant
IRS Launches ERC Repayment Program Read More »
The IRS has updated tax figures for 2024 to match rising living costs. This includes changes to income tax brackets, standard deductions, and other tax-related amounts. 2024 Tax Brackets For 2024, the highest income tax bracket of 37% applies when taxable income hits: $731,200 for married individuals filing jointly and surviving spouses, $609,350 for single individuals
IRS 2024 Tax Changes Read More »
The SECURE 2.0 Act of 2022 included some changes that are about to impact required minimum distribution (RMD) requirements. To explain the changes and reduce taxpayer confusion, below we explain the changes in the RMDs for certain retirement plans and individual retirement accounts (IRAs) included in IRS Notice 2023-54. What Changed? Change in RMD Age:
Required Minimum Distributions Rule Changes Read More »