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
From the IRS release in June 2024, there will be more reporting requirements to digital and crypto brokers (the ones taking possession or custody of those assets, similar to financial institutions that take custody of securities (stock, bonds, etc.) and release a 1099 Brokerage at year end). As included in the guidance, there is no
As communicated each year, the IRS has updated some of the deductions, tax exemptions, tax exclusions and other tax items based on inflation. In several media, this has been celebrated as the IRS increasing the threshold and in some cases creating clickbait headlines to attract readers, but the reality is that each fall the IRS
The Cannabis industry had some rumors in the last few months on a potential move from Schedule I substance which are considered hard drugs with no medical use and that are especially harmful for users due to abuse to a more relaxed Schedule III which are medical drugs with lower dependence. The current Biden administration
If you are a homecare agency, you should be aware of potential changes from Centers for Medicare and Medicaid Services that would require the payment of 80% of the Medicaid fees for services to the employees providing the services, defined as "... homemaker, home health aide, and personal care services on direct care worker compensation."
As you might be aware, the IRS was established by the Tax Relief and Health Care Act of 2006 and paid its first award one year later. As mentioned in the IR-2024-199, "... since issuing its first award in 2007 through June 2024, the IRS has paid over $1.2 billion in awards based on the
The IRS shares details on how its budget is allocated to resources, the composition of its workforce, and many other details that are relevant to see what areas the IRS is prioritizing. You can read from their official website (link below) and see more details on the graphs, tables and even download Excel files with
In the FS-2024-28, the IRS reminds us how to treat crowdfunding transactions. Note that there were several articles and posts published related to this topic in the IRS website (See links below) and now the IRS is updating some of their guidance, like the 1099K thresholds. If there is a platform or website to request
The Cohan rule originated from a case from 1930, but it is still applicable and used to this date. The Cohan rule allowed to claim deductions even if the taxpayer had no documentation for these expenses (in general and in practice, the Court allows lower expenses that the ones claimed by the taxpayer). Cohan was
