With the ever-changing landscape of tax laws and regulations, there has never been a better time to invest in your education and expertise. A Master of Science in Taxation (MST) could be your ticket to unlocking new opportunities and advancing your career in this dynamic field. Here are three compelling reasons why pursuing an MST might be the right move for you: 1. Meeting the industry’s demands The taxation industry is in constant flux, with frequent updates and revisions to tax laws both domestically and internationally. As such, there is a pressing need for tax professionals who possess sp ..read more

Since Schedule C is the primary method through which sole proprietors report their earnings, tax pros catering to clients who own small businesses must be adept in its preparation. It’s a cornerstone of tax compliance for this demographic, requiring attention to detail to accurately reflect the financial activities of the business. Below, you’ll find a few of the top questions from a recent webinar on the topic and their accompanying answers. If you choose to attend the on-demand version of this webinar, you can access the full recording and the entire list of Q&As.    Q: Is it true you ca ..read more

Question: Lina filed Form 990, Return of Organization Exempt From Income Tax, by May 15, 2024, which is the due date for Alley Cats Rescue, a tax-exempt organization filing on a calendar year basis. Shortly after, the Form 990 was returned to her along with IRS Letter 2694C indicating there was information missing from her submission. She immediately called the IRS and found out that when information is missing from the Form or Schedules are omitted, the return is sent back to the filing organization and considered “not timely filed” – hence the letter to spur a correction. When she reviewed h ..read more

With the IRS resuming its campus collection operations, it is more important than ever for you to be able to help clients who owe back taxes or have a balance due with their 2023 tax return. More and more taxpayers now owe the IRS back taxes and an increasing number of taxpayers are filing with a balance due. The data After over four years of pandemic-affected operations, the IRS now has over 24 million taxpayers who owe back taxes. If that number is not startling enough, the number of taxpayers who are not in a collection agreement on their back balances is astonishing. Almost 83% are not in ..read more

Family situations can be unique and ever-changing. Because of this, you understand the intricacies of the child tax credit (CTC), the additional child tax credit (ACTC) and the other dependent credit (ODC) to accurately assess your clients’ tax situations. This understanding will ensure your clients receive the full benefits they’re entitled to, optimizing their tax returns and minimizing possible financial burdens. Below, you’ll find a few of the top questions from a recent webinar on the topic and their accompanying answers. If you choose to attend the on-demand version of this webinar, you ..read more

Question: Joe has owned a residential rental real estate property since 1993. He has taken straight-line depreciation, using 27.5 years as the life of the property. He is selling the property in 2024. Does Joe have any potentially ordinary income to report from the gain, or from the gain due to previous depreciation allowed or allowable, known as “depreciation recapture”? Answer: No. Rental real estate depreciation rates have been mandatorily straight-line since 1987 with residential rentals being depreciated over 27.5 years and commercial property depreciated over 31.5 years or 39 years if pl ..read more

With the end of tax season rapidly approaching, NATP is reminding tax preparers of recent news items that could impact your practice, your clients or returns you prepare. 1. New RMD rules in effect for 2023 tax year The SECURE 2.0 Act of 2022 raised the age at which account owners are required to take minimum distributions (RMDs) from their IRAs and employer-sponsored retirement plans from 72 to 73 for 2023. Under the new rule, individuals born in 1951 must take their first RMD by April 1, 2025. For most individuals born before 1951, RMDs should have already begun and are required for 2023. 2 ..read more

Navigating the landscape of eligibility criteria for the self-employed health insurance (SEHI) deduction requires careful consideration of various factors, including the nature of the entity and how the insurance policy was procured. These elements shape the determination of a taxpayer’s eligibility and the methodology employed for computing the deduction. Below, you’ll find a few of the top questions from a recent webinar on the topic and their accompanying answers. If you choose to attend the on-demand version of this webinar, you can access the full recording and the entire list of Q&As ..read more

Attention all tax professionals! Mark your calendars, because the countdown to Taxposium 2024 has officially begun! As the premier event in the tax industry, Taxposium promises to deliver yet another year of unparalleled insights, networking opportunities and invaluable knowledge to elevate your career to new heights. Kicking off the event on day one is none other than IRS Commissioner Danny Werfel. Werfel will deliver the opening address, welcoming attendees from across the nation to the tax industry’s premier education event. He will also answer questions about some of the hottest IRS news ..read more

Question: Erek is a retired public safety officer. He separated from service due to disability. He wants to take out $3,000 tax-free from his retirement plan to pay for his Medicare premium. Is he allowed to do so? Answer: No. If Erek withdrew the funds from his retirement plan to pay for his Medicare, it would be taxable to him. To begin, who is a retired public safety officer? They are law enforcement officers, firefighters, chaplains or members of a rescue squad or ambulance crew who separated from service as a public safety officer with the employer who maintains the retirement plan for th ..read more