Author: Frank Carnahan

2024-09-20 Notice 2024-68 Taxpayers may use to the special rates substantiate the amount of expenses for lodging, meals, and incidental expenses when traveling away from home. This annual notice provides the 2024-2025 special per diem rates for taxpayers to use in substantiating the amount of ordinary and necessary business expenses incurred while traveling away from home, specifically: (1) the special transportation industry mealand incidental expenses (M&IE) rates; (2) the rate…

2024-09-20 IR- 2024-243 Offer in Compromise program: Dirty Dozen: Pre-qualifier tool IRS warns of “mills” taking advantage of taxpayers with Offer in Compromise program IR-2024-243, Sept. 19, 2024 WASHINGTON — The Internal Revenue Service reminds taxpayers to beware of promoters claiming their services are necessary to resolve unpaid taxes owed to the IRS while charging excessive fees, often with no results. These unscrupulous “mills” use aggressive marketing to make false…

2024-09-13 Tax Tip 2024-77 The Taxpayer Advocate Service is an independent organization within the IRS. TAS protects taxpayers' rights by striving to ensure that all taxpayers are treated fairly and know and understand their rights under the Taxpayer Bill of Rights. Here's what all taxpayers should know about their rights and the role of the Taxpayer Advocate Service. The Taxpayer Bill of Rights describes 10 basic rights that all taxpayers…

2024-09-04 FS-2024-28 Crowdfunding website or its payment processor may be required to report distributions of money raised by filing Form 1099-K, Payment Card and Third Party Network Transactions, with the IRS if the amount distributed meets certain reporting thresholds: Calendar years 2023 and prior – Form 1099-K is required if the total of all payments distributed to a person exceeded $20,000 and resulted from more than 200 transactions; and Calendar…

2024-09-04 FS-2024-29 Starting in tax year 2023 SECURE 2.0 Act changes may affect the amounts businesses need to report on Forms W-2. The provisions potentially affecting Forms W-2 (including Forms W-2AS, W-2GU and W-2VI) are: De minimis financial incentives; Roth Savings Incentive Match Plan for Employees (SIMPLE) and Roth Simplified Employee Pension (SEP) Individual Retirement Arrangements (IRAs); and Optional treatment of employer nonelective or matching contributions as Roth contributions. Businesses…

2024-08-29 Bad actors often favor non-financed residential real estate transfers (including "all-cash" sales) to avoid scrutiny from financial institutions that have anti-money laundering and countering the financing of terrorism (AML/CFT) program and Suspicious Activity Report (SAR) filing requirements under the Bank Secrecy Act (BSA), and obscure their identities and ownership interests by holding the residential real estate in the name of a legal entity or trust. FinCEN issued final rules…

2024-08-27 IR-2024-212, Aug. 15, 2024 The Employee Retention Credit ("ERC") program began as an effort to help businesses during the pandemic, but became the target of aggressive marketing well after the pandemic ended. Some promoter groups called the credit by another name, such as a grant, business stimulus payment, or government relief to increase claims. Findings of the IRS review, announced in June 2024, confirmed concerns raised by tax professionals…

2024-08-23 IR-2024-219, Aug. 21, 2024 The IRS reminds schoolteachers that the maximum deduction for classroom expenses in 2024 remains at $300. This deduction allows educators to offset the cost of supplies, materials and other classroom essentials, providing some financial relief for those who spend their own money to improve their students' learning experience. Who qualifies for educator expense deductions? This deduction is available for teachers, instructors, counselors, principals and aides…

2024-08-19 The Internal Revenue Service launched the Business Tax Account (BTA) service in the fall of 2023, an online self-service tool for business taxpayers that now allows them to view and make balance-due payments, and continues to expand its features. When fully developed, BTA will allow many types of business taxpayers to check their tax history, make payments, view notices, authorize powers of attorney and conduct other business with the…

2024-07-30 IR-2024-187, July 15, 2024 The Internal Revenue Service issued a consumer alert regarding bad advice circulating on social media about a non-existent “Self Employment Tax Credit” that’s misleading taxpayers into filing false claims. Promoters and social media are marketing something they describe as the “Self Employment Tax Credit” as a way for self-employed people and gig workers to get big payments for the COVID-19 pandemic period. Similar to misleading…