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 […]
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 […]
The Fight Over Taxing Unrealized Income
The U.S. Supreme Court recently heard oral arguments that could lead to a landmark ruling that affects how unrealized income is (or isn’t) taxed. As summarized here, Moore vs the United States deals with a relatively new mandatory repatriation tax (MRT) that the plaintiffs claim is unconstitutional. “The one-time tax is supposed to prevent shareholders […]
1099-K Reporting Threshold Takes a Big Dip
The IRS has announced it is delaying the new $600 Form 1099-K reporting threshold requirement for third-party payment organizations for tax year 2023 and is planning a threshold of $5,000 for 2024 to phase in the new law. Digital payment platforms affected include Venmo, PayPal, eBay, and other payment apps and online marketplaces. “This phased-in […]
Timing Is Everything in Tax Planning
Mastering the art of timing can be a powerful tax planning tool. Simply filing and paying on time can make a significant difference. So can managing the timing of asset purchases, capital gains and losses, and deductions. Consider the following ways timing can reduce your tax bill: Failure-to-file and late payments. It’s critical to understand […]
How Banks Are Tapping into Artificial Intelligence
You may be experimenting with ChatGPT and other AI, and so is your bank. Financial institutions are incorporating AI into their services, but the road to innovation is fraught with risks. “AI systems have been widely used for years, with banks spending billions to automate functions like trading, risk management, fraud detection and investment research. […]