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Categories for Tax and Financial News

  • IRS Announces End of Unannounced Taxpayer Visits (Mostly)

    Posted Date September 1, 2023 Posted Time 12:00 pm Published in

    You wake up in the middle of the night. Heart racing, drenched in sweat, and breathing heavily. Thankfully, it was just a nightmare when the IRS showed up at your doorstep unannounced. Recently, however, this was the reality for some taxpayers – and not just a bad dream. The IRS just publicized a significant shift in policy, effectively ending the vast majority of surprise taxpayer visits. The change comes in an effort to create safer conditions for IRS officers as well as ease public concerns. Who’s Knocking at My Door? In order to understand the change in policy, you’ll need... View Article

  • 2023 Sales Tax Holidays for Back-to-School Shopping

    Posted Date August 1, 2023 Posted Time 12:00 pm Published in

    Now that we are heading into the backend of summer, it’s time for many states to host their annual sales tax holidays for returning to-school shopping. Numerous states with sales tax (remember, not all states have a sales tax) provide the reprieve to help families with the cost of annual school supplies and clothing. According to the National Retail Federation, nearly 80 percent of shoppers are expecting increased costs this year versus last year; so more than ever, consumers are looking for ways to save. Furthermore, about two-thirds of back-to-school shoppers take advantage of these tax-free shopping periods. The vast... View Article

  • Increased Tax Bills Hitting Private Companies – Big and Small

    Posted Date July 1, 2023 Posted Time 12:00 pm Published in

    Private companies both large and small are feeling the tax pinch due to changes in the law. With rampant inflation, labor shortages, lingering supply chain issues and increased borrowing costs due to rising interest rates, tax problems are the last thing struggling companies need to face. While tax rates themselves remain largely unchanged, business’ taxable income is increasing due to changes in three main deduction areas: research and experimental (R&E) capitalization; interest expense deduction calculations; and a reduction in bonus depreciation. All of these provisions were made more liberal in the Tax Cuts and Jobs Act (TCJA) of 2018, but... View Article

  • End of Covid Emergency Declarations Put Work from Home Benefits at Risk

    Posted Date June 1, 2023 Posted Time 12:00 pm Published in

    The end of the federal emergency declaration for Covid-19 came on May 11. As a result, there are various public health policy changes. For example, vaccines and treatments will remain available, but at-home tests may no longer be covered by insurance and national CDC data reporting is subject to change. Administratively, there are also changes to regulatory measures temporarily put in place by the emergency status that will have tax consequences. As employers struggled during the pandemic, some even to meet payroll, issues around expense reimbursements, stipends and how these are considered fringe benefits or compensation came into light. History... View Article

  • I Needed to Repay Part of My Compensation; Will I Get a Refund on My Taxes?

    Posted Date May 1, 2023 Posted Time 12:00 pm Published in

    So, you filed and paid all your taxes on the money you earned in 2021. Now, the company you work for finds itself in trouble, and you are forced to pay back part of your compensation. The big question is, will the IRS refund you for the taxes you already paid related to this compensation? While this seems like a bizarre scenario at first glance, it is more common than you might think. Reducing or holding back compensation that hasn’t been earned yet is easy. Simply pay an executive or employee less, or don’t grant the stock option or bonus.... View Article

  • How Volunteering Can Earn You a Big Tax Deduction

    Posted Date April 1, 2023 Posted Time 12:00 pm Published in

    Most people volunteer out of a sense of altruism, duty or purpose – not to get a tax deduction from Uncle Sam. At the same time, if your good deeds could also result in lower taxes, why not? Theoretically, this would free up more time to volunteer or let you make a charitable donation, a win-win for you and the cause you care about. What Volunteering Expenses Can You Deduct? As with all tax rules and regulations, the devil is in the details. If you itemize your tax deductions, you might be eligible for some valuable deductions. Any expenses deducted... View Article

  • Sold Your Home Last Year or Plan to in 2023? If So, Here’s What You Need to Know

    Posted Date March 1, 2023 Posted Time 12:00 pm Published in

    The U.S. housing market has been extremely volatile over the past year. Year-over-year growth rates were at highs of 20.1 percent in April 2022, then declined to only 8.6 percent in November – the biggest drop in over 20 years. As a result, many homeowners who sold their homes in 2022 or plan to in 2023 may have either gains or losses depending on their location and timing. Below, we tackle the issues you need to know to properly account for the taxation of your home sale. Only Some Gains Are Taxable Not all gains on home sales are taxable,... View Article

  • Key Deadlines and Changes for the 2023 Tax Season

    Posted Date February 1, 2023 Posted Time 12:00 pm Published in

    Every year, typically right after the new year starts, the IRS formally announces key dates and deadlines for the current tax season. Recently, the IRS made the announcements for the current 2023 tax season. To make sure the process goes as smoothly as possible, it’s best if you are aware of this tax season’s deadlines and key dates so you don’t miss a beat in working with your CPA. Tax Season in Perspective More than 168 million individual tax returns are expected to be submitted to the IRS in 2023, covering the 2022 tax year. The last three years saw... View Article

  • The IRS Versus the Taxpayer

    Posted Date January 1, 2023 Posted Time 12:00 pm Published in

    According to the IRS, ignorance of tax rules and regulations is no excuse. Therefore, it’s essential to use an experienced tax preparer to assist in filing your taxes. The tax code is complex and only gets more complicated as time goes on, making it almost impossible to ensure they are filing correctly without the help of a CPA, EA, or Tax Professional. Moreover, the penalty for making what could be deemed an innocent mistake can cost a taxpayer a significant sum. What is worse yet is that defending yourself against the IRS is a costly endeavor in terms of both time and... View Article

  • Tax Planning Guide for Disaster Area Victims

    Posted Date November 1, 2022 Posted Time 12:00 pm Published in

    The recent hurricane Ian impacted much of the southeast United States. As a result, it is good to know the general tax rules related to disaster victims. Below, we look at several tax topics for disaster area victims. 1. Tax Returns and Filings Q: I am a disaster area victim and needed to move from my home. I might not be back for a long time or even at all. Which address should I use on my tax return? A: A taxpayer should always use their current address in filing a tax return. In the situation where you move after... View Article

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