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
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
As mentioned in IR-2024-217, the IRS has released interim guidance in late August 2024 allowing that employers with retirement plans (401(k) plan, 403(b) plan, governmental 457(b) plan or SIMPLE IRA plan) can provide matching for employees payments to their student loans in plan years beginning Dec 2023. Previously the employer matching was only if the
More and more often, personal data gets hacked, exposed, etc. Some of you remember the Equifax data breach with 147 million people impacted and a settlement of up to $425 million dollars and there have been many other cases since then. The most recent one is the National Public Data that exposed 3 billion individuals
In July 2024, the IRS released several warnings on widespread scams and misleading claims on the Self Employment tax credit. The IRS is taking a proactive communication approach and raising awareness of scams, fraud and other misleading information on social media and by different promoters. Clean Energy Tax Credit – In the IR-2024-182, the
In the IRS IR-2024-174, the IRS announced that is mailing out a limited time settlement offer for taxpayers that participated in Syndicated Conservation Easement. How does the Syndicated Conservation Easement work? This is an overvalued conservation easement that is claimed as charitable contributions that promoters will target to high income taxpayers. The target will invest
In the mid year report to Congress (IR-2024-173), National Taxpayer Advocate Erin M. Collins revealed the misleading metrics that the IRS uses to report call service. The IRS accounts for a goal of achieving a Level of Service (LoS) of at least 85%, which was exceeded in 2024 (88%). "... The Treasury Department and the
