On Nov. 5, the U.S. House of Representatives passed the Infrastructure Investment and Jobs Act, which includes a handful of tax provisions. President Biden is expected to sign the bill into law soon. It will end the Employee Retention Credit earlier than scheduled. The credit will now be applicable to wages paid before Oct. 1, […]

How well is the IRS protecting confidential data that’s stored on their devices? A key element of assuring confidentiality is “sanitization” of laptops, desktops and smartphones, according to the Treasury Inspector General for Tax Administration (TIGTA). In an audit, TIGTA found that the “IRS is not using an approved sanitization product to overwrite sensitive taxpayer

Each year, the Treasury Inspector General for Tax Administration (TIGTA) is required by law to summarize the key challenges facing the IRS. For fiscal year 2022, the top challenge is the administration of tax law changes and pandemic relief benefits. The IRS was heavily impacted by the pandemic and unable to perform many of its

As we approach the end of the year, be aware that taxpayers are allowed a special charitable contribution deduction for 2021 even if they don’t itemize. Ordinarily, people who claim the standard deduction on their tax returns can’t claim a deduction for their charitable donations. But a temporary law change permits them to claim a

The IRS has announced the 2022 cost-of-living adjustment amounts for 401(k) plans and other retirement-plan-related limits. For 2022, individuals can contribute up to $20,500 to their 401(k) plans (as well as 403(b) and most 457 plans), up from $19,500 for 2021. The catch-up contribution limit for employees age 50 and over who participate in 401(k),

The U.S. Tax Court has upheld trust fund recovery penalties that were imposed against a hospital chief administrator after the hospital’s payroll taxes weren’t paid over to the IRS. The long-time hospital employee was deemed a “responsible person” who was personally liable for $25,905 in penalties. The court found she had oversight and check-signing authority

Tax guidance is available for those who received federal mortgage payment assistance from the Homeowners Assistance Fund (HAF). The HAF, part of the 2021 American Rescue Plan Act, is intended to mitigate housing-related financial hardships caused by the pandemic. The program provides funds to entities to assist homeowners in danger of mortgage defaults or loss

Businesses can generally deduct the costs of marketing and advertising on their tax returns. Costs must be “ordinary and necessary,” which means common and accepted in the industry and helpful and appropriate to the business, such as reasonable advertising costs directly related to a company’s activities. An expense doesn’t have to be indispensable to be

The IRS has announced its 2022 cost-of-living adjustments for more than 60 tax provisions. The 2022 adjustments generally apply to tax returns filed in 2023. A few highlights: the standard deduction increases $800 to $25,900 for married couples filing jointly; up $400 to $12,950 for single taxpayers and married individuals filing separately; and up $600

According to updated FAQs from the IRS, taxpayers who received 2021 advance Child Tax Credit (CTC) payments should consider providing the tax agency with an estimate of their 2021 income in certain situations. For example, if they think they won’t qualify for the payments because their modified adjusted gross income (MAGI) in 2021 will exceed