MYTH vs FACT: Tax Title of the “Inflation Reduction Act of 2022” Democrats claim their tax-and-spend bill, the mislabeled “Inflation Reduction Act of 2022,” will ensure the wealthiest Americans and corporations pay their “fair share” by closing tax loopholes and boosting IRS funding, all without raising taxes on anyone making less than $400,000 per year. However, […]
TaxConnections
Congress Hears From Small Businesses About Problems Caused By Wayfair
On June 14, 2022, the Senate Finance Committee heard testimony on the impact on small businesses and remote sales of the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc., 138 S. Ct. 2080, 201 L. Ed. 2d 403 (2018). In Wayfair, the U.S. Supreme Court ruled that a business’s physical presence in a state (or lack […]
IRS Offering Jobs To Thousands Of Workers This Summer
To boost its workforce and better help taxpayers and businesses, the Internal Revenue Service announced today that it’s looking to hire over 4,000 contact representative positions at several IRS offices nationwide this summer. A contact representative provides administrative and technical assistance to individuals and businesses primarily over the phone, through written correspondence or in person. […]
What is Effectively Connected Income?
Unlike FDAP income, the United States taxes effectively connected income (“ECI”) on a net basis. Effectively connected income is income that is effectively connected with the conduct of a U.S. trade or business. It also includes gains from the disposition of U.S. real property under FIRPTA, which are treated as ECI. Generally, when determining whether income constitutes effectively […]
IRS Guidance For 2020 Employee Retention Credit & PPP Eligibility Rules
The Internal Revenue Service issued guidance for employers claiming the employee retention credit under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), as modified by the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (Relief Act), for calendar quarters in 2020. The guidance in Notice 2021-20 PDF is similar to the information in the employee […]
Tax Time Guide: Make Protecting Tax And Financial Information A Habit
WASHINGTON – The Internal Revenue Service urged people to continue practicing proper cybersecurity habits by securing computers, phones and other devices. Scams and schemes using the IRS as a lure can take on many variations, so practicing personal information security is vital. This news release is part of a series called the Tax Time Guide, […]
Know These Tax Implications of Settlements & Judgments
Your client just settled—or better yet, won a judgment. What are the tax consequences? Admittedly, the tax impact of resolving a dispute is often little more than an afterthought. But a client’s net after-tax recovery can vary drastically depending on the applicable tax rules. An attorney armed with an understanding of the relevant tax issues […]
How Working Remotely Could Affect Your Taxes
When COVID-19 struck last March, employers quickly switched to a work-from-home model for their employees, many of whom began working in a state other than the one in which their office was located. While some workers have returned to their offices, many have not. If you’re working remotely from a location in a different state […]
Find Unclaimed Money Governments Or Businesses Owe You
If a business, government office, or other source owes you money that you don’t collect, it’s considered unclaimed. The federal government doesn’t have a central website for finding unclaimed money. But you don’t need to hire a company to find unclaimed money for you. You can find it on your own for free, using official […]
IRS Audit Rates Increase As Income Rises
Few things can generate as much taxpayer concern, confusion and controversy as an IRS audit. Tax audits are a critical compliance tool to help ensure fairness in the tax system, and the IRS works hard to ensure the agency’s audit selection process is fair and impartial. Decisions to conduct audits are based on the financial […]
