U.S. Tax Court rules on basis adjustment for excess losses in closed years
The U.S. tax court has ruled in Surk LLC vs. IRS that a partnership had to adjust its basis in a flow-through entity for losses taken previously, even though they shouldn’t have been deducted in those prior years. The Tax Court...
Earned Sick Time Act reinstated in Michigan beginning Feb. 21, 2025
A Michigan Supreme Court ruling from July 2024 has reinstated the Earned Sick Time Act (ESTA). This legislation requires ALL Michigan employers to accrue employee sick time and takes effect Feb. 21, 2025. Details of the ESTA include: Employees will...
IRS encourages all taxpayers to sign up for an IP PIN before Nov. 23
As the 2025 tax season approaches, the IRS encourages all taxpayers to take an important step to safeguard their identity by signing up for an identity protection personal identification number (IP PIN). An IP PIN is a six-digit number that...
New CTA reporting due dates are approaching…
The new federal Corporate Transparency Act (CTA), intended to help prevent and combat money laundering, terrorist financing, corruption, tax fraud, and other illicit activity, took effect on January 1, 2024. This new Act affects most American businesses, as well as...
IRS online tool lets taxpayers check their account balance
The IRS is urging taxpayers to use a handy online tool to check the status of their federal tax accounts. The online account feature is one of many useful online tools driving the impressive growth in visits to the agency’s...
IRS provides relief for hurricane victims in seven states
The Internal Revenue Service (IRS) announced disaster tax relief for all individuals and businesses affected by Hurricane Helene, in any area designated by the Federal Emergency Management Agency (FEMA) including the entire states of Alabama, Georgia, North Carolina and South...
IRS may legitimately ask for taxpayer ID verification with Letter 5071C
The IRS uses various methods to verify taxpayers' identities as part of its ongoing efforts to combat identity theft. One method involves a mailed notice called Letter 5071C, which requests taxpayers to confirm their identity to either proceed with processing...
Self-Employment Tax and Rental Exceptions
The tax treatment, particularly the application of self-employment taxes, of rental income from real estate investment properties can depend on the nature of the property and how it's operated. In most cases, the IRS considers rental income as passive income....
IRS issues new guidance on cryptocurrency and digital assets
The IRS recently made several updates related to cryptocurrency and digital asset transactions which investors and digital asset owners should be aware of: Revenue Ruling 2023-14 There has been debate for some time about the treatment of staking activities. Some...
IRS moving forward with ERC claims
The IRS is adding new actions to help process valid Employee Retention Credit claims amid misleading marketing that led to an exceptionally high rate of improper ERC claims. The IRS says it did not have the resources to process the...