If you work or live outside the U.S., you have until June 17 to file your income tax return with the IRS. This deadline applies to U.S. citizens and resident aliens, including those with dual citizenship. These taxpayers are granted an automatic two-month extension to file their taxes. You qualify for the June 17 extension if you live outside the United States and Puerto Rico and your main place of business is also outside these regions, or if you are serving in the military outside the United States and Puerto Rico on the regular due date of your tax return. To take advantage of this extensio ..read more

You shouldn’t count on AI to do your taxes anytime soon. Despite the rise of AI chatbots, relying on them for comprehensive tax preparation is not advisable. Over the past year, several options have emerged for taxpayers to seek assistance from chatbots with their taxes. However, these tools are designed to help with straightforward queries rather than manage the entire filing process. Their primary function is to address simple questions that arise during tax preparation, not to handle the complexities of the process itself. One significant limitation of AI chatbots is their knowledge cutoff ..read more

The IRS has unveiled an eagerly awaited update to its Strategic Operating Plan (SOP), a comprehensive blueprint delineating the pivotal projects and anticipated outcomes for the forthcoming year. Among the notable highlights of the SOP revision is the agency's steadfast commitment to tax equity, underscored by a strategic initiative aimed at intensifying audits targeting affluent taxpayers, major corporations, and intricate partnerships. Projections suggest a yield surpassing $10 million attributable to this initiative by the year 2026. Under this recalibration, the audit rate for the most aff ..read more

Don’t get your tax advice from social media. The IRS had to issue a consumer alert addressing concerns about a series of tax scams and inaccurate social media advice. The scams were centered around the Fuel Tax Credit, the Sick and Family Leave Credit, and household employment taxes. The Fuel Tax Credit is designed for off-highway business and farming use. Taxpayers who want to use this credit need a business purpose and have a qualifying business activity. Credits for sick and family leave are for self-employed individuals for 2020 and 2021 during the pandemic, they are not available for the ..read more

The IRS has unveiled an eagerly awaited update to its Strategic Operating Plan (SOP), a comprehensive blueprint delineating the pivotal projects and anticipated outcomes for the forthcoming year. Among the notable highlights of the SOP revision is the agency's steadfast commitment to tax equity, underscored by a strategic initiative aimed at intensifying audits targeting affluent taxpayers, major corporations, and intricate partnerships. Projections suggest a yield surpassing $10 million attributable to this initiative by the year 2026. Under this recalibration, the audit rate for the most aff ..read more

The Tax Relief for American Families and Workers Act of 2024 was passed earlier this year. A resulting change for individuals is an upgrade to the child tax credit. Under the new provisions, the refundable amount is calculated per child. To break this down further, earned income over $2,500 will be multiplied by 15% which will be multiplied per child. This calculation becomes the total refundable amount. On top of that, the maximum amount for this refundable credit will be increased by $100 every year until 2025. Taxpayers can also choose to calculate the refundable credit using earned income ..read more

The Tax Cuts and Jobs Act of 2017 is set to expire at the end of 2025. This expiration will lead to some serious tax changes, some of which are being transitioned into during the 2024 tax year. One of the most helpful provisions of the Tax Cuts and Jobs Act of 2017 that will be fully expiring in 2025 is the 199A pass-through deduction. This provision allows for households that have pass-through business income (ex: Partnerships, S corporations, etc.) to deduct 20% of that qualified business income from their taxes. Many business owners and political figures alike have begun to speculate on wha ..read more

Investors need to minimize their tax liability. This allows for higher levels of disposable income, as well as higher net investment returns, which are key to strengthening investments into long-term profits. There will always be a level of risk associated with investments, but there are options that will lower the risk of a large tax liability through the following tax-free and tax-reducing types of investments. 1.    Roth 401(k) Plans: With the rise of Roth IRAs, Roth 401(k) Plans are a beneficial type of tax-free retirement plan that employees should look into. These plans ar ..read more

There is a surplus of tax changes to account for as both individuals and businesses alike plan for the 2024 tax year ahead. Some of these changes are new laws and others are provisions of older laws that are finally going into effect. The following are a few important changes to take note of: 1.    The Health Saving Account (HSA) contribution limit has increased to $4,150 for individuals and $8,300 for families. 2.    First-year bonus depreciation is decreasing from 80% to 60%. 3.    The cash method of accounting can be used by C-Corporations whose ..read more

The Supreme Court has just heard the oral arguments in Connelly v. Internal Revenue Service. In this case, Thomas Connelly had become the 100% sole shareholder of Crown C Supply Co. Inc. after his brother, who was 75% owner, passed away. Michael Connelly’s shares were redeemed by the company using life insurance money. The argument has come before the Supreme Court to decide if a redemption funded by life insurance money increases estate tax liability by increasing the value of ownership interest. At the heart of this debate is the true value of the redeemed shares. The IRS takes the position ..read more