Category: Tax
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 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...
IRS clarifies RMD rules on inherited IRAs but tax implications loom
The IRS and Treasury Department issued final regulations reflecting updates from the SECURE Act and SECURE 2.0 Act affecting retirement plans, IRAs, and beneficiaries, addressing additional issues related to Required Minimum Distributions (RMDs) of inherited retirement accounts. Specifically, the IRS...
Recent ruling may increase estate values
In a recent unanimous decision, the U.S. Supreme Court held that life insurance proceeds received by a corporation to redeem a deceased shareholder’s stock increases the value of the corporation for estate tax value purposes, and does so without an...
IRS may send errant letter regarding “unpaid” 2023 taxes
Taxpayers who paid their 2023 taxes by check or electronic payment may be sent a CP14 (Balance Due, No Math Error) notice indicating a balance due even though payments were made with their 2023 tax return. Taxpayers who paid electronically...
Michigan Personal Property Tax exemption rules clarified for businesses
In 2022, the State of Michigan increased the Personal Property Tax (PPT) exemption from $80,000 to $180,000 of true cash value. With that change came a new reporting requirement for companies that fell in the $80,000-$180,000 range, requiring they file...
How to classify an employee vs. independent contractor
The classification of employee vs. independent contractor can have many ramifications, from the way the person gets paid to the cost of utilizing their services. For instance, if someone performing services for your company is an independent contractor, you do...