In the spirit of Independence Day, it’s a good time to review the rules for auditor independence. If you discover potential issues now, there’s still plenty of time to take corrective action before next year’s audit begins. Definition of independence Independence is one of the most important requirements for audit firms. It’s why investors and … Read More
The IRS generally, but not always, complies with legal guidelines when conducting seizures of taxpayers’ property. So found a Treasury Inspector General for Tax Administration (TIGTA) audit. The audit reviewed 74 of the 97 seizures the IRS conducted between July 1, 2020, and June 30, 2021. Before the IRS can seize an asset, an advisor … Read More
The pandemic and the ensuing economic turmoil have put tremendous stress on businesses. Many companies that appeared healthy on the surface, on their financial statements, quickly realized that they weren’t prepared for the unexpected. A so-called “stress test” of your company’s financial position and its ability to withstand a crisis can help prevent this situation … Read More
Summer is officially here, and for some taxpayers, that might bring new tax implications. Newlyweds should contact several agencies to update their information. Parents who send their dependent kids (under age 13) to summer day camp may be able to deduct it as a work-related expense. Taxpayers who work summer or part-time jobs may not … Read More
Not all tax avoidance is intentional, according to a new interdepartmental Joint Strategic Emerging Issues Team (JSEIT) at the IRS. JSEIT’s objective is to use compliance-risk assessments to pinpoint possible promoters of abusive tax schemes. It also will decide how to deploy resources. Some issues may require education, while others may warrant investigations. Analytics will … Read More
Taxpayers going through a divorce or legal separation will see changes to their tax situations. But filing status won’t change until there’s a final decree of divorce or separate maintenance. Once a decree is issued, each party should file a new Form W-4 (Withholding Certificate) to ensure proper withholding. If there are dependent children, generally … Read More
One of the ways the IRS is addressing complaints about phone call wait times is with voice bots. The agency has been using voice-activated software to help taxpayers navigate service menus and get answers to relatively simple questions since January 2022. Now, it’s expanding bot use to help callers set up and modify payment plans. … Read More
U.S. revenues for fiscal year 2022 so far have exceeded predictions, according to the Congressional Budget Office (CBO). The CBO reports that FY 2022 revenues outpaced the same period in FY 2021 by 29%, due to increases in individual taxes, payroll taxes and corporate income tax collections. The estimated federal budget deficit for FY 2022 … Read More
In a report to Congress, the IRS’s Whistleblower Office said that in 2021 the agency collected more than $245 million from noncompliant taxpayers as a result of whistleblowers’ tips. The IRS made 179 awards totaling more than $36 million to the whistleblowers. Since the whistleblower program began in 2007, the number and amounts of awards … Read More
Some people who begin claiming Social Security benefits are surprised to find out they’re taxed by the federal government on the amounts they receive. If you’re wondering whether you’ll be taxed on your Social Security benefits, the answer is: It depends. The taxation of Social Security benefits depends on your other income. If your income … Read More