Misinformation Abounds on IRS Plan to Spend $80 Billion
The Inflation Reduction Act provides nearly $80 billion in IRS funding over the next ten years. The IRS plans to use some of the funds to hire 87,000 employees. Many claim the funds will be used to hire an army of auditors dedicated to auditing taxpayers. Let’s add some perspective to the claims and numbers:…
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IRS Still Behind – National Taxpayer Advocate Report to Congress
National Taxpayer Advocate Erin Collins released her annual report to Congress in December . While the report’s tone touts progress, there are still significant issues and delays. Among the data released: As of mid-December 2022, there was a backlog of 1 million originally filed individual returns, 1.5 million originally filed business returns, and 1.5 million…
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Cryptocurrency – the Wild, Wild West
Even with prices falling, interest in cryptocurrency is on the rise. It is important to know the tax implications before you jump into the world of crypto. Whether you are invested in, accept or make payment with, or receive a gift of crypto it may give rise to a taxable event. The following chart is…
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Estimated Taxes and Withholding – What to Pay and When
Federal and Alabama taxes are collected on a pay-as-you-go system, either through withholding or estimated taxes. Do You Need to Pay Estimates? If your income is mainly from wages and you always have a substantial balance due at tax time, increase withholding and pass on making estimates. Otherwise consider if the following applies to you:…
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SafeSend Return FAQs
Many of you have successfully SafeSend returns e-sign feature as part of our tax return delivery process; however, we would like to take this opportunity to provide additional information and provide some extra incentive to give the program a try if you haven’t yet had the opportunity. SafeSend FAQs What are the benefits to you,…
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The IRS Raises 2023 Retirement Plan Contribution Limits
As they do each year, the IRS announced 2023 retirement plan increases as follows: 2022 2023 2023 Catch Up 401(k), 403(b) & 457 $20,500 $22,500 $7,500 Traditional or Roth IRA $6,000 $6,500 $1,000 SIMPLE IRA $14,000 $15,500 $3,500 SEP IRA $61,000 $66,000 N/A Catch-Up Contributions Individuals aged 50 or older are allowed to make…
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Charitable Contribution Documentation
Approximately 30% of annual charitable giving in the US occurs in December. As we enter the giving season, make sure you have the proper documentation to substantiate a gift for tax deduction purposes. For all contributions of $250 or more, you must have a contemporaneous written acknowledgment (“CWA”) from the organization. A CWA must include…
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Individual Capital Gains Explained
At year-end, we get calls from clients asking about individual capital gains as they harvest gains and losses. This is an overview of the rules. Capital gains are grouped and taxed based on the holding period. Long-term capital gains or losses are generated by the sale of assets held over 12 months, and short-term have…
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Making the Most of Fixed Asset Purchases – Expensing Options
Let’s review some options to reduce taxable income through expensing of fixed asset purchases and, in some cases, improvements.
A Better Way to Make Federal and State Tax Payments?
By: Lane Hooper, CPA, Senior Accountant Since the pandemic began, the Internal Revenue Service has struggled to process returns, payments and correspondence. See our July 13th post (link here) if you’d like to read more in depth about the current state of affairs at the IRS. If one of our clients experiences an IRS issue,…
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