Tax Refund? Celebrate, Then Investigate
Did you get a tax refund? It’s exciting, isn’t it? Now, the question is: What should you do with it? You could take a vacation, pay down debt, invest it, or fund a retirement account. The possibilities are endless! Whatever you do with the money, however, there’s one more vital task to complete as soon […]
IRS Audits Soar for Personal Use of Business Aircraft
Corporate jet usage is the focus of a growing number of IRS audits this year. It’s part of a bigger effort to crack down on large corporations, partnerships, and high-income taxpayers. The IRS announced in February that it was beginning dozens of audits in which undeclared personal use of a business aircraft is suspected. The […]
How Is Tax Filing Season Going?
The IRS has already processed 62 million tax returns and refunded more than $135 billion this tax season. These early-bird taxpayers have received an average tax refund of $3,145, which is 5.8% higher than the same period a year ago. “The bigger average refund marks a reversal from the dip that the typical taxpayer experienced […]
Beneficial Ownership and the CTA in the Latest Tax Notes
We love participating in Tax Notes! Lee A. Sheppard always has an entertaining spin on the latest tax issues, and the most recent one citing Steven Bankler’s thoughts on beneficial ownership and the Corporate Transparency Act (CTA) is no exception. As Sheppard explains, “Three years ago, Congress decided to throw out all the furniture of […]
IRS Expands Access to Business Tax Accounts
IRS business tax accounts are now available to individual partners of partnerships and individual shareholders of S corporations, a privilege that was previously available only to sole proprietors. The IRS counts the move as part of its “continuing transformation work,” expanding its business tax account capabilities and eligible entity types in its second phase of […]
Staffing Strains and the Work Opportunity Tax Credit
While the employee retention credit (ERC) is no more, there’s still a significant tax credit on your side when hiring great workers from demographics that have historically faced significant barriers to employment: the federal Work Opportunity Tax Credit (WOTC). Staffing shortages over the past few years may have you thinking outside the box. In today’s […]
Texas Increases Franchise Tax Exemption
The January 1, 2024, Texas franchise tax filing deadline was the first for some business owners to avoid paying or even filing a “no taxes due” form. The Texas franchise tax exemption has doubled, allowing up to $2.47 million of an entity’s total taxable revenue to be exempted from franchise taxes. The move completely eliminates […]
IRS Crackdown on Millionaires Is a Sweeping Success
The federal government is over half a billion dollars richer thanks to its increased collection of back taxes. The IRS has been making headlines with its intensified enforcement efforts to ensure that high-income individuals, large corporations, and complex partnerships pay their fair share of taxes. The push is part of a broader initiative to transform […]
IRS Collection Reminders Are Back
The IRS has restarted sending automated collection notices, ending a two-year hiatus due to the COVID-19 pandemic. The IRS temporarily suspended the mailing of automated reminders to pay overdue tax bills back in February 2022. Affected taxpayers would have received an initial tax letter regarding taxes due but no follow-up reminders. Reinstated “special reminders” started […]
Giving to Charities Abroad
With war, natural disasters, and other tragedies happening worldwide, you may want to donate to the global causes you believe in. But what are the tax implications of giving to charities abroad? Donating to charity has its own rewards, well above and beyond tax breaks. However, those tax breaks can sweeten the pot, allowing you […]