Partners may have to report more income on tax returns than they receive in cash Are you a partner in a business? (Note: this includes LLC members if the LLC is treated as a 1065 Partnership for tax purposes!)You may have come across a situation that’s...
IRS Issues Backup Withholding Error Notices This is on the IRS Website Tax Tip 2022-67 The IRS has issued backup withholding error notices to payors required to withhold tax from payments to certain payees. Notices CP2100 and 2100A were mailed to payors that...
The tax mechanics involved in the sale of trade or business property What are the tax consequences of selling property used in your trade or business? There are many rules that can potentially apply to the sale of business property. Thus, to simplify discussion, let’s...
Great Article about IRS Backlog! I am posting this great article from Thomson-Reuters. Tax Lawyers and CPA's have been pushing to get the IRS to OPEN THE MAIL, process returns and correspondence. It is not uncommon for the IRS to take up to a year to respond to...
The U.S. Supreme Court rejected a bid by four Democratic-leaning states to lift a cap on federal deductions for state and local taxes put in place as part of a 2017 tax law. This law increased the Standard deduction to $25,000 which allows most married couples to file...
Should You Get an Identity Protection PIN? The IRS announced, in IR 2022-78, 4/11/2022 Identity Protection Personal Identification Numbers (IP PINs) can protect taxpayers from tax fraud. Should you get one? Identity Protection PIN (IP PIN). An IP PIN is a six-digit...
IRS Tax Tip 2022-50: Filing season security tip: Know the facts about how the IRS contacts taxpayers The IRS has reminded taxpayers how it will and, perhaps more importantly, will not contact taxpayers. When the IRS needs to contact a taxpayer, usually it first...
Taking the opposite approach: Ways your business can accelerate taxable income and defer deductions Typically, businesses want to delay recognition of taxable income into future years and accelerate deductions into the current year. But when is it prudent to do the...
IRS Issues New 2022 Rules for Passenger Car Depreciation The IRS has provided updated tables containing: 1. Depreciation deduction limits for passenger automobiles placed in service in 2022, and 2. Dollar amounts that must be used to determine the annual income...