Results for: IRS

With tax season approaching, the American Institute of CPAs (AICPA) is calling on the IRS to prepare for potential changes impacting cannabis businesses. The AICPA has submitted recommendations to the U.S. Treasury and IRS to clarify tax obligations for cannabis operators if marijuana is reclassified as a Schedule III substance, as recommended by the Department of Health and Human Services. This reclassification could allow cannabis businesses to deduct operating expenses currently restricted under Section 280E, potentially leading to significant tax relief.

The Biden administration’s massive funding increases for the IRS raise concerns about the agency’s potential weaponization against conservatives, especially given its history of targeting right-leaning groups. The administration’s claims about focusing on high-income earners are contradicted by data showing a disproportionate number of audits targeting lower-income taxpayers. This raises serious questions about the agency’s true motives and the potential for political abuse.

Texas Senator Ted Cruz may face scrutiny from the Internal Revenue Service (IRS) for payments linked to his podcast, prompting questions about potential income reporting violations. Tax experts suggest that Cruz may need to declare income from the podcast, even if he is not directly compensated by the broadcaster. The senator’s office and the broadcaster have denied any wrongdoing, but some experts argue that the payments could be considered income due to their connection with Cruz’s performance on the podcast.

The Internal Revenue Service (IRS) has opened applications for Low Income Taxpayer Clinic (LITC) matching grants for 2025. LITCs provide free or low-cost assistance to low-income taxpayers in resolving tax disputes with the IRS and understanding their tax rights. Applications are due by June 12, 2024, for grants covering the period from January 1, 2025, to December 31, 2025. LITCs played a significant role in 2020, representing nearly 20,000 taxpayers in controversies with the IRS and helping them secure over $5.8 million in tax refunds and reduce their liabilities by over $116 million.

Jeff Jacoby’s suggestion to require individuals to pay taxes directly from their checking accounts is met with criticism for its inefficiency and potential hardship. Many Americans live paycheck to paycheck and may struggle to make such payments, and the proposal would increase government workload with millions of monthly checks to process.

The Internal Revenue Service (IRS) has issued guidance clarifying the tax treatment of work-life referral services provided to employees under employer-sponsored programs. This development signifies a milestone in employee benefits and taxation, offering advantages for employers and employees alike. Under the new guidance, work-life referral programs that provide informational and referral consultations to assist employees with personal, work, and family challenges can qualify as de minimis fringe benefits, exempt from income and employment taxes. This clarification underscores the importance of work-life balance and encourages employers to invest in comprehensive work-life referral programs to foster employee well-being, satisfaction, retention, and productivity.

April 15 was tax filing day for many taxpayers. If you haven’t received your refund yet, use the IRS refund tracker to check the status. It takes at least 24 hours to track an online return or four weeks if you mailed your return. Factors that can affect refund delivery include errors, additional review, corrections needed for the return, and variations in processing times.

The crypto community has been abuzz with rumors regarding a proposed 1% wealth tax on substantial Bitcoin (BTC) holders. However, the proposal, highlighted in a letter shared with President Joe Biden, remains unverified. If such a policy were to be implemented, individuals and corporations holding crypto assets over $1,000 would be obligated to report their holdings annually to the Internal Revenue Service (IRS). Additionally, a 1% wealth tax would be levied on entities possessing digital assets exceeding $500,000. While some speculate that this tax could be a regulatory measure or an attempt to mitigate market manipulation by large crypto holders, the bill’s primary goal is reportedly to address wealth disparities in the United States. It’s essential to note that this bill is not officially confirmed and has been dismissed as false. Understanding crypto tax in U.S.: The Biden administration previously proposed a tax increase, including raising the capital gains tax rate to 43.4% for those earning over $1 million. This proposal sparked controversy and faced criticism from venture capital investors like Tim Draper, who raised concerns about its potential negative impact on the economy.