News
Governor Lamont and U.S. Treasury Secretary Yellen Announce Connecticut Joining IRS Direct File
August 09, 2024
Governor Ned Lamont and U.S. Secretary of the Treasury Janet L. Yellen today announced that, beginning in the 2025 filing season, Connecticut will join IRS Direct File – a newly launched option to file federal tax returns online that is provided to users at no cost, empowering residents to file with ease and without having to pay the fees associated with for-profit tax software companies.
ERC disallowance letters go to 28K businesses, moratorium adjusted
August 08, 2024
The IRS will start processing some employee retention credit (ERC) claims that have been subject to its claim processing moratorium, it announced on Thursday. The Service also said it has recently sent out 28,000 disallowance letters to businesses and plans to begin paying 50,000 valid claims for the pandemic-era credit.
Multi-factor authentication: Key protection to tax professionals’ security arsenal now required
August 07, 2024
The Internal Revenue Service and the Security Summit partners remind tax professionals that using multi-factor authentication is now more than an important protection for their businesses and their clients – it’s now a federal requirement.
Tax practitioner complaint leads to review of advocate phone service
August 05, 2024
A tax practitioner, frustrated by a six-week wait for a Taxpayer Advocate Service (TAS) response about a tax refund, complained to a federal watchdog. That complaint, related to a client facing financial hardship, led to a review that found the phone service provided by TAS offices across the nation was slow and inconsistent.
Fifth Circuit rules cell phone tax unconstitutional
August 02, 2024
In a case that will likely end up in the Supreme Court, the Fifth Circuit has held that the "universal service" tax that appears on cell phone bills violates Article 1, Section 1, of the U.S. Constitution.
Melancon: Supreme Court decisions are ‘big deal’ for tax pros
August 01, 2024
Two recent Supreme Court decisions involving the power of government agencies are a "big deal" for the accounting profession because they introduce a level of uncertainty that makes some tax practitioners uncomfortable, AICPA & CIMA's CEO said recently.
IRS shares more warning signs of incorrect claims for the Employee Retention Credit; urges businesses to proactively resolve erroneous claims to avoid penalties, interest, audit
July 26, 2024
As the Internal Revenue Service intensifies work on the Employee Retention Credit, the agency today shared five new warning signs being seen on incorrect claims by businesses.
IRS enhances online accounts, adds more e-file business forms
July 25, 2024
The Internal Revenue Service and the Treasury Department reported further progress Thursday on offering more online tools and expanded taxpayer service, including six new features for the Individual Online Account, a new Spanish version of the Business Tax Account, and additional business forms that can be filed electronically.
How Kamala Harris may shift the crucial tax debate in this year's election
July 23, 2024
The new presumptive presidential nominee for the Democratic Party carries a long paper trail in tax policy. That history may alter the debate in a pivotal election ahead of a looming deadline next year.
The road to November: What tax pros' clients think about the election
July 21, 2024
Few American elections have had as much at stake as this year's, and clients have a lot on their minds concerning November.
Final and proposed regs. issued on retirement plan RMDs
July 18, 2024
The IRS on Thursday issued final regulations (T.D. 10001) that update the rules for required minimum distributions (RMDs) from qualified plans; Sec. 403(b) annuity contracts, custodial accounts, and retirement income accounts; individual retirement accounts and annuities (IRAs); and certain eligible deferred compensation plans.
IRS crypto enforcement could get tougher
July 15, 2024
The Internal Revenue Service could be doing a better job of cracking down on tax noncompliance by users of virtual currency or digital assets, according to a new report.
IRS tops $1 billion in past-due taxes collected from millionaires; compliance efforts continue involving high-wealth groups, corporations, partnerships
July 11, 2024
As part of continuing compliance efforts under the Inflation Reduction Act, the Internal Revenue Service today announced the agency has surpassed the $1 billion mark in collections from high-wealth taxpayers with past-due taxes.
How do different accounting firms use AI?
June 03, 2024
See how both the Big 4 and smaller firms are utilizing AI in their workflows.
IRS announces extension of Free File program through 2029
May 22, 2024
The Internal Revenue Service announced today an extension of the current Free File program through 2029 following an agreement that will continue to make the free private-sector tax software available to taxpayers.
Tax Credit Transfers: The New Face of Renewable Energy Tax Equity
March 11, 2024
The renewable energy finance landscape has undergone a transformative shift with the passage of the Inflation Reduction Act of 2022. Building on this legislation, IRS proposed guidance in June 2023 helped to establish the tax credit transfer market, thereby allowing corporate taxpayers to play a pivotal role in the clean energy revolution. In this article, we explore the historical context of Investment Tax Credits (ITC) and Production Tax Credits (PTC), traditional tax equity financing structures, and the new opportunity presented by tax credit transferability for small- and medium-sized corporations.
IRS renews focus on targeting high-income nonfilers
February 29, 2024
Over 125,000 high-income people who have not filed federal tax returns since 2017 will be mailed letters advising that they must file returns or explain why they don't need to file a return, the IRS said Thursday.
IRS: Connecticut taxpayers impacted by storms qualify for tax relief; various deadlines postponed to June 17
January 23, 2024
New London county has received a FEMA disaster emergency declaration which allows for the postponement of certain due dates for specific tax filings and tax payments. It also allows for the deduction of casualty losses attributable to emergency declaration within the declared area.
Auditor options when finding ineligible ERC claims
January 10, 2024
An employee retention credit (ERC) grant is a fully refundable payroll tax credit that eligible businesses and tax-exempt organizations can claim for qualified wages paid to their employees. This credit was designed to help businesses retain their employees during periods of economic hardship during the COVID-19 pandemic. Eligible employers must meet certain criteria, such as experiencing a significant decline in gross receipts or being fully or partially shut down by a government order. The credit is claimed by amending payroll tax returns.
IRS: Taxpayers impacted by the terrorist attacks in Israel qualify for tax relief; Oct. 16 filing deadline, other dates postponed to Oct. 7, 2024
October 14, 2023
The Internal Revenue Service announced tax relief for individuals and businesses affected by the terrorist attacks in the State of Israel. These taxpayers now have until Oct. 7, 2024, to file various federal returns, make tax payments and perform other time-sensitive tax-related actions. In Notice 2023-71PDF, the IRS provided relief to certain taxpayers who, due to the terrorist attacks, may be unable to meet a tax-filing or tax-payment obligation, or may be unable to perform other time-sensitive tax-related actions. The IRS will continue to monitor events and may provide additional relief.