IRS Caught Covering Up a $38 Million Blunder
The IRS was recently caught backdating a signature on a valuation penalty document—and then trying to talk their way out of trouble—in a giant conservation easement case. Legal experts wonder whether the IRS has backdated penalty documents in other similar cases, “hinting at a troubling picture of potentially systemic issues within the IRS.” This recent […]
IRS Intends to Be More User-Friendly by 2024
The IRS recently updated the public on how it’s been spending its cash infusion, including new online accounts and mobile-friendly forms. It also announced an end to surprise visits from tax collectors. “We’ve started transforming IRS operations,” IRS Commissioner Danny Werfel stated. “These will provide significant benefits for taxpayers, tax professionals, and the tax system […]
IRS Gives Out Badges & Trust Us, You Don’t Want One
How does the IRS determine who gets flagged for potential tax fraud activity? The agency judges taxpayer actions against a list of over 60 “badges” or indications of fraud ranging from misrepresenting expenses and deductions to lying, bribery and concealment. Of course, badges are usually given out for a job well done. Receiving an IRS […]
Inflation and Your Small Business
The U.S. Chamber of Commerce reports that one in three small business owners consider inflation their top concern right now. Inflation worries have driven small business optimism about the future to record lows, adds the National Federation of Independent Business. In response, 67% have raised prices, 41% have decreased staff, and 39% have taken out […]
Uncle Sam Just Scored a Mysterious $7B Tax Gift
LinkedIn: Only a handful of known billionaires could be responsible, but there are no obvious suspects. Was it tax planning at its worst or its most brilliant? In one single day this past February, the U.S. Treasury recorded a deposit of $7 billion in the category of estate and gift taxes, the highest collection of […]
529 Rollovers to Roth IRAs Coming Soon
Starting in 2024, you can rollover old, unused 529 funds into a Roth IRA as a way to avoid taxes and penalties on the money if it turns out you didn’t need it for a student’s education after all. The change is part of the SECURE 2.0 Act, which, under Section 126, will allow tax-free […]
The ‘Wayfair Tax’ Could Plague Businesses in 2023
Remember the 2018 Wayfair ruling? Industry experts speculate that small businesses conducting out-of-state sales could see enforcement of the economic nexus ruling ramp up in 2023. The $80 billion cash infusion the IRS recently received could cause a trickle-down effect of increased state-level sales and use tax audits, according to CPA Practice Advisor. Of particular […]
Unsettling Real Estate Scams on the Rise
You’re on the verge of closing on the purchase of a new house when an email comes in from the agent. It includes instructions on how to wire your closing costs just as you anticipated. The timing is correct, and the email seems legitimate, so you don’t question it. You wire the funds and start […]
How a $1 Billion Texas Tax Shelter Blew Apart
It’s hard to hide one billion dollars from the IRS, as a Dallas attorney allegedly found out recently. The man is accused of creating tax shelters to help high-net-worth clients conceal giant sums of money in income from the IRS. What did he allegedly do? According to the U.S. Attorney for the Northern District of […]
Still Waiting for PPP Loan Forgiveness?
As COVID-19 relief for small businesses fades away, about 1 million PPP loans remain unforgiven. Roughly 9% of businesses that received PPP loans haven’t filed for forgiveness. A handful who did were denied or are still awaiting an answer. If you have a PPP loan, you should have either received forgiveness or started making payments […]