U.S. Treasury Secretary Janet Yellen told lawmakers on June 17 that “there are some tough trade-offs in fiscal policy,” but “a fairer tax code for a structurally sound economy is not one of them.” Appearing before the House Ways and Means Committee hearing on the Administration’s Fiscal Year 2022 budget proposal, Yellen called the president’s … Read More
The “sandwich generation” is a large segment of the population. These are people who find themselves caring for both their children and their parents at the same time. As a result, estate planning — which traditionally focuses on providing for one’s children — has expanded in many cases to include one’s aging parents as well. … Read More
The Treasury Inspector General for Tax Administration (TIGTA) has reported for some time that the IRS’s technology needs upgrades. According to a recent TIGTA audit, as of May 2020, the IRS reported that “within the next three years, 619 information technology employees with expert-level skills are eligible to retire.” That’s 50.2% of the IRS’s IT … Read More
At many businesses, job descriptions have it easy. They were “hired” (that is, written) many years ago. They haven’t had to change or do anything, really, besides get copied and pasted into a want ad occasionally. They’re not really good at what they do, but they’re used again and again because everyone assumes they’re just … Read More
Individuals who give the IRS Whistleblower Office information about unpaid federal tax may qualify for cash awards. To be eligible, the tip must be credible, specific and relate to “tax underpayments or violations of internal revenue laws,” and the IRS must use the information to collect proceeds. One whistleblower claimed that the IRS used information … Read More
Most of us are taught from a young age never to assume anything. Why? Well, because when you assume, you make an … you probably know how the rest of the expression goes. A dangerous assumption that many business owners make is that, if their companies are profitable, their cash flow must also be strong. … Read More
The rates for valuing employer-provided airplane flights for the first half of 2021 are announced. In a revenue ruling, the IRS published the U.S. Department of Transportation’s semi-annual Standard Industry Fare Level (SIFL) rates and terminal charges used in the special valuation formula for valuing employer-provided noncommercial flights. If a person flies on an employer-provided … Read More
Are you looking to take a deeper dive into the topic of the “tax gap?” The Joint Committee on Taxation (JCT) recently published a report that provides background on federal tax law and analyzes issues related to the tax gap. According to the JCT, a definition of the tax gap is the shortfall between the … Read More
In today’s unprecedented market conditions, it can be challenging to predict metrics that underlie your company’s accounting estimates. Examples of key “unknowns” include how much longer certain pandemic issues will continue, how federal stimulus spending will affect the economy over the long run, and the extent to which tax laws and environment regulations may change … Read More
The Congressional Budget Office (CBO) reports that the federal budget deficit has climbed to an estimated $2.1 trillion for the first eight months of fiscal 2021. According to the CBO, outlays were an estimated $771 billion but federal revenues were $300 billion more from Jan. through June than the agency expected. The CBO attributed the … Read More