IRS HIRING THOUSANDS TO CATCH UP

IRS hiring thousands to catch up. With the IRS behind on filing of paper tax returns from last year, they are adding nearly 11,000 additional workers to catch up the backlog of tax returns that have not been processed. The best guestimate is that by the fall of 2022 the backlog will be caught up […]

PROPER STATUS FOR FILING BUSINESS TAXES

Proper status for filing business taxes. Whenever someone decides to open up a business, they should at some point stop, and determine what status the business should take. Why ? Well because we have spoken to hundreds of business owners over the last 36 years who did not do that very simple thing, and went […]

NEW CREDIT DOCUMENTATION REQUIREMENTS

New credit documentation requirements. The IRS has provided guidance to taxpayers and internally on its new documentation requirements for administrative refund claims of the Sec. 41 business tax credit for increasng reserch activitites (the R& D credit). The taxpayer guidance comes in the form of 16 frequently asked questions posted on the IRS’s website. At […]

PRESIDENT TO RAISE TAXES ON THE RICH

President to raise taxes on the rich. Democrats have spent the last several years clamoring to raise taxes on corporations and the rich, seeing that as a necessary antidote to widening economic inequality and a rebuke of President Donald signature tax cuts. Now, under President Biden, they have a shot at ushering in the largest […]

STIMULUS NEGOTIATIONS AND WHEN THEY RESUME

Stimulus negotiations and when they resume. Congress went on recess last week without passing a new stimulus relief bill, but the growing crisis with the U.S. Postal Service ahead of the presidential election will bring it back into session. House Speaker Nancy Pelosi said she will cut the House of Representatives break short with a […]

HOW YOUR VIRUS CHECK MIGHT BE TAXED

How your virus check might be taxed. Many Americans may soon get checks in their hands from the government. But Uncle Sam could also claw back some of that money. Information about how much those checks will be–and whether or not individuals will owe IRS tax on them–will likely be hammered out in a deal […]

NEW TAXES SHOW SHIFT IN PUBLIC MOOD

New taxes show shift in public mood. From the outset, several top tier Democratic presidential candidates are pushing for new taxes on the wealthiest Americans and attempting to portray themselves as best positioned to fight the country’s yawning inequality gap. It is an indication of how much the Democratic Party is shifting and how far […]

WHAT CONSTITUTES ENTERTAINMENT EXPENSE

What constitutes entertainment expense. This is a question we are often asked. If an activity is generally considered to be entertainment, it will constitute entertainment for purposes of IRS Section 274 (a) and Section 1.274-2 regardless of whether the expenditure for the activity can also be described otherwise, and even though the expenditure relates to […]

TAX REFORM HELPING INCREASE INTEREST RATES

Tax reform helping increase interest rates. President Trumps tax reform helping increase interest rates. That must be the conclusion when one realizes that the economy is on all cylinders and about to go into overdrive. When the U.S. economy fires on all cylinders the eventual result is an overheating of the economic engine, and the […]