If you are a reader of our posts, you are aware that the IRS has increased significantly its funding (billions of dollars). As part of this inflow of money, the IRS has focused on two fundamental areas: 1) Customer services and 2) Enforcement. The IRS keeps publishing the data in an example of transparency and
Earlier this month, a Texas Federal judge struck down the DOL (Department of Labor) exempt salary rule that raised the minimum salary as exempt from overtime and minimum wage requirements under the Fair Labor Standards Act (FLSA). It is reverted now to the rules before July 1, 2024. The salary level test amount for executive,
Probably all of us have had some interactions with Artificial Intelligence (AI) at this point. Either providing more advanced search results, creating presentations or writing papers, automating manual processes, or even having a discussion on the phone (yes, there are many sales and marketing tools available). Also, you have probably seen an increase of advertising
Back in 2022, the Secure Act 2.0 was passed and made numerous changes in retirement plans and individual retirement plans, included in the over 90 provisions, there was a Saver's credit to be applicable from 2027. The interesting part about this provision is that from 2027, "... by making annual contributions of up to $2,000
The Federal Trade Commission is extremely busy targeting businesses that are misleading consumer or employ deceptive claims for money making opportunities. Misleading consumer on social media, which it is extremely common even in the tax industry ensuring $50,000 of tax savings for clients on average, a million dollar tax refund, etc. might generate a
Over the past twelve months, we’ve noticed a concerning rise in IRS deficiency notices (CP3219N) sent to taxpayers. In most cases, these letters result from discrepancies between filed tax returns and the IRS's records from third-party sources. When the IRS identifies a difference, they send a notice with the following options: File a Tax Return
You might have hear derogatory terms to refer to the IRS agents or to the entity in general, like "in my audit, I just threw them a bone to leave me away". However, this is nothing farther from the truth as in the recent years, the funding has been increased and the IRS employees has
Similar to the IRS focus on partnership that we shared in our last week post, the S Corporation is another higher scrutiny entity type for the IRS. Back in June 2024, the IRS Chief Counsel Margie Rollinson announced the creation of new Associate Office that would focus on partnerships, S Corporations, trusts and estates. She
In the 2023 National Taxpayer Advocate report to Congress, this organization lists a number of issues that the IRS should address as priorities for "serious" problems. The report is public and published each year. Additionally, the report provides details in plain language of why each problem has a significant impact on the taxpayers and how
The IRS has been putting more focus on partnerships in recent times. Back in June 2024, the IRS released a statement were the Agency would put more focus on "high-income compliance issues" and "... to combat abusive partnership transactions" which mainly related to basis shifting transactions. Then, the IRS targeted specifically three groups: " Transfer
