RefundtalkStarting this week, the Internal Revenue Service is sending letters to more than 9 million individuals and families who appear to qualify for a variety of key tax benefits but did not claim them by filing a 2021 federal income tax return. Many in this group may be eligible to claim some or all of…
Category Archives: Tax News
Inflation Reduction Act
Last month, Congress passed the Inflation Reduction Act (IRA22), which provides the IRS with supplemental funding of nearly $80 billion over the next ten years. More than half the funding has been earmarked for tax law enforcement, and that has attracted a good deal of public attention. But the legislation also provides about $3.2 billion for…
The Freedom of Information Act
Originally enacted on July 4, 1966, the Freedom of Information Act established a statutory right of public access to Executive Branch information held by the federal government. The FOIA provides that any person has a right, enforceable in court, to obtain access to federal agency records under the Act, except to the extent that any portions of…
New IRS rule will affect cash app business transactions in 2022
The American Rescue Plan Act of 2021 modifies the IRS reporting requirement from $20,000 in aggregate payments and 200 transactions to a threshold of $600 in aggregate payments, with no minimum transaction number. The new rule is effective beginning on Jan. 1, 2022. The IRS will start sending 1099-K forms to businesses that make transactions on cash applications that…
What is a “Potentially Dangerous Taxpayer?”
Even when aggravated, treat others with respect—especially if it is the Internal Revenue Service (IRS). Those who do not may end up with a special designation with the IRS—a Potentially Dangerous Taxpayer (PDT). Navigating the intricacies of the tax system can be challenging, and certain terms can leave taxpayers perplexed. One such term is the…
What Is Your Adjusted Gross Income And How Is It Different Than Your Regular Income?
When it comes to filing your taxes, it seems there is another language that only CPA’s and IRS employees understand. One of these baffling tax terms is “adjusted gross income”, which is apparently different than the amount of money you make every year and also different than the modified adjusted gross income. What exactly is…
What Does The Government Shutdown Mean For Taxes?
The government shut down early Saturday, January 20th after Congress failed to agree on a funding bill. That triggered automatic furloughs for government employees deemed “non-essential.” That means only a portion of each federal agency’s employees will continue to work through the shutdown. A shutdown plan posted on the Treasury Department’s website shows that nearly…
The Most Googled Tax Terms by State
If you’ve ever tried to do your own taxes, you know how confusing they can be. Trying to pay taxes to two states or figure out what you can deduct and what you can’t? Good luck! No matter who you are, you can’t avoid taxes. Whether you’re a small business owner working with an accountant…
Results of the 2015 Tax Filing Season
Results from the 2015 IRS Income Tax Filing Season The annual tax return filing season is a critical period for the Internal Revenue Service (IRS) because it is when most individuals file their income tax returns and contact the IRS if they have questions about specific tax laws or filing procedures. As of May 8, 2015,…
Illegal ways people claim larger tax credits
Illegal ways people are Cashing in on Bigger Tax Credits Most people who want to cheat on their taxes will do anything they can to understate their income. After all, the more money you make, the more money you’ll likely owe. But there’s at least one scam where an unscrupulous tax preparer will try to…
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