INFLATION REDUCTION ACT ADDS 87,000 IRS

Inflation reduction act adds 87,000 IRS. The newly passed Inflation Reduction Act will add according to the GAO an estimated 87,000 New IRS People. Republicans were quick to state that the Act would increase the chance of audits on ordinary American, although that seems more a political year hype, designed to sway voters. The IRS […]

WHITE HOUSE TO TAX BILLIONAIRES

White House to tax billionaires. When Candidate Joe Biden ran for office, one of the things he said was that billionaires were not paying a fair share of IRS taxes. He cited statistics and rallied support for the idea behind the large majority of Americans. After dealing with the Covid pandemic initially, the administration finally […]

UNITED STATES MOVING TOWARDS CRYPTO

United States moving towards crypto. President Joe Biden is expected to sign a order that will be a beginning of the regulation of the cryptocurrency asset class, and will be used to regulate how the digital currency is traded. It is also being done, coincidentally, due to the Ukraine invasion, and the economic sanctions on […]

IRS ADDING SECOND SURGE TEAM

IRS adding second surge team. It looks like the IRS wants to speed up the processing of the unfinished 2020 tax returns, which have been estimated to be nearly 12 million tax returns. The backlog is a result of the Covid closure of the IRS for nearly 5 months, and the increased workload given to […]

STATES CANNOT USE AID FOR TAX CUTS

States cannot use aid for tax cuts. After large stimulus measures were passed by Congress, several Republican Attorney General’s filed suit to try to allow those particular states to use the money to implement tax cuts. One of the arguments used was the “sovereignty” argument. This is a different form of the “sovereignty” argument.  Ohio […]

UNEMPLOYMENT AND A STIMULUS CHECK

Unemployment and a stimulus check. The CARES Act became law on recently with several financial aid provisions for American households. Two signature pieces of the stimulus package are now arriving–stimulus checks and enhanced unemployment benefits. As the unemployment rate continues to increase these benefits are more valuable that ever. Stimulus checks. Most taxpayers are getting […]

INDEPENDENT CONTRACTOR OR EMPLOYEE

Independent contractor or employee. This issue comes up with companies that we have dealt with over the last 32 years. Often, companies incorrectly classify an employee as an independent contractor, hoping to avoid payroll taxes and health insurance obligations. This is trend has swept through the ranks of corporate America over the last 30 years […]

IMPORTANT 2019 ROTH IRS RULES

Important 2019 roth irs rules. A Roth IRA is a form of tax benefited retirement account. With Roth IRAs your contributions are not tax deductible, but your eventual withdrawals will be. This makes Roth IRSs a great way to ensure your financial security well into retirement. However, there are many rules about who can contribute […]

TAX LANDS DIRTY DOZEN TAX SCAMS

Tax lands dirty dozen tax scams. As they do every year, the IRS issues on their website a list of the “Dirty Dozen” tax scams. Here they are. Inflated refund scams. Fraudulent tax preparers often falsify tax returns to gain clients, or lure clients into handing the money over to them, them pocketing large amounts […]

TAX TREATMENT OF STATE AND LOCAL TAX REFUNDS

Tax treatment of state and local tax refunds. In IRS Rev. Rul. 2019-11, the Internal Revenue Service addressed how the long standing tax benefit rule interacts with the new $10,000 limit on deductions of state and local taxes to determine the portion of any state or local tax refund that must be included on the […]