IRS offers penalty relief to ERTC claimants

The IRS recently reminded employers of penalty relief related to claims for the Employee Retention Tax Credit (ERTC).  The situation may arise when additional income tax is owed because the deduction for qualified wages is reduced by the amount of a...

Cryptocurrency Tax Losses May Be Subject to a $3,000 Cap

The cryptocurrency market has been on a wild ride this year.  For some, that's meant dramatic losses in their digital wallets that should be accounted for on tax returns.  However, even the IRS appears unsure of how to treat these...

IRS updates status of tax return processing backlog

  • May 27, 2022
  • ShindelRock

The IRS continues to struggle with tax return processing in the wake of the COVID-19 pandemic.  As of 5/14/22, the IRS had 9.8 million unprocessed individual returns received before 2022 as well as new tax year 2021 returns. The backlog...

Michigan First-Time Home Buyer Savings Program offers favorable state tax treatment to new homebuyers

The Michigan First-Time Home Buyer Savings Program was created in 2022 to assist first-time home buyers (a Michigan resident who has not owned or purchased a single-family residence during a period of 3 years before the date of the purchase...

Inflation-adjusted Health Savings Account (HSA) Figures for 2023

Health Savings Accounts (HSAs) allow eligible individuals to make deductible contributions that can be withdrawn tax-free for reimbursement of eligible medical expenses. For 2023, the limitation on HSA deductions is $3,850 (up from $3,650 for 2022) for an individual with self-only...

I bonds offer a high-return option for some savers

I bonds, an inflation-protected and nearly risk-free investment backed by the U.S. government, will pay 9.62% through October 2022, the U.S. Department of the Treasury announced.  With average savings account yields under 1%, and most one-year CDs paying less than...

Tax refunds are slow coming to paper filers for a second year

In 2020, pandemic-related factors significantly delayed refunds due to taxpayers.  Those filing 2021 taxes may find an unwelcome repeat of last year's delay, as it could again take six months or more for taxpayers who filed paper returns to receive their...

Caretakers may exclude certain Medicaid waiver payments from income

Family members who care for a disabled relative in their shared home, and receive Medicaid payments to provide that care, may qualify for an exclusion of certain Medicaid waiver payments on their gross income calculation. IRS Notice 2014-7 provides guidance on...

Employer-provided tuition assistance programs must meet requirements

An employer-provider educational assistance program is a separate written plan that provides educational assistance only to employees*. For Employers: The program qualifies only if all of the following tests are met: The program doesn't favor highly-compensated employees**. To determine whether...

Tax consequences of compensation clawbacks for issuers and executives

Corporate executives with lucrative contracts can be subject to "clawbacks", or reclaiming of already-paid compensation, for violating company policy, agreement, or law.  This can raise questions about the tax implications for both the company who issued the clawback and the executive...