Whether someone is a current homeowner or buying a new home this summer owning a home can be expensive. There are tax benefits that can help taxpayers save money and offset some of the costs that come with homeownership. Homeowners should review the tax deductions, programs and housing allowances to see if they are eligible.… Read More
In the continuing effort to improve tax compliance and ensure fairness, the Internal Revenue Service announced a new effort on Feb. 29, focused on high-income taxpayers who have failed to file federal income tax returns in more than 125,000 instances since 2017. The new initiative, made possible by Inflation Reduction Act funding, begins with IRS compliance letters… Read More
The Internal Revenue Service today reminded taxpayers that they must again answer a digital asset question and report all digital asset related income when they file their 2023 federal income tax return, as they did for their 2022 federal tax returns. The question appears at the top of Forms 1040, Individual Income Tax Return; 1040-SR, U.S. Tax… Read More
With tax season rapidly approaching, the IRS reminds employers that Jan. 31 is the deadline for submitting wage statements and forms for independent contractors with the government. Employers must file their copies of Form W-2, Wage and Tax Statement, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration by Jan. 31. The Jan.… Read More
When disaster strikes, Americans can always be counted on to help. That help comes in countless ways, but often the easiest way to help is by donating money to charities. Sadly, criminals are just as likely to answer the call after a disaster or emergency as the millions of people who open their wallets. Scammers… Read More
As the new school year begins, the Internal Revenue Service reminds teachers and other educators that they’ll be able to deduct up to $300 of out-of-pocket classroom expenses for 2023 when they file their federal income tax return next year. This is the same limit that applied in 2022, the first year this provision became… Read More
Beware of Employee Retention Credit scams The IRS continues to see third parties aggressively promoting Employee Retention Credit (ERC) schemes. In News Release IR-2023-105, the IRS renewed an alert for businesses and tax exempt groups to watch out for warning signs of aggressive Employee Retention Credit marketing. These promoters may lie about eligibility requirements. In addition, taxpayers using… Read More
DETERMINING THE VALUE The first step in claiming a non-cash donation on your tax return is to calculate the fair market value (FMV) of the item or items that you donated. FMV is the price that the items would sell for on the open market. As most non-cash contributions are of used items, the FMV… Read More
Businesses or other payers required to take backup withholding funds from payments should make sure they have a few upcoming filing deadlines on their calendar. Backup withholding can apply to most kinds of payments reported on Forms 1099 and W-2G. There are, however, situations when a payer must withhold 24% of the payment to ensure the IRS… Read More
What is a digital asset? A digital asset is a digital representation of value which is recorded on a cryptographically secured, distributed ledger. Common digital assets include: Convertible virtual currency and cryptocurrency Stablecoins Non-fungible tokens (NFTs) Everyone must answer the question Everyone who files Form 1040, Form 1040-SR or Form 1040-NR must check one box,… Read More