Do I Have to Pay Taxes on Verdicts or Settlements? In a couple of recent lawsuits, plaintiffs sued Meta (the parent company of Facebook) claiming Facebook caused social media addiction. These plaintiffs won large verdicts. These verdicts are not without controversy and will certainly be appealed, but nevertheless others may attempt to initiate lawsuits and
Taxes
What Happens if ChatGPT or other AI Does My Taxes?
What Happens if ChatGPT or other AI Does My Taxes? People rely on ChatGPT and other AI platforms for all sorts of advice including legal and tax advice. While AI is still in its infancy and it will improve over time, it frequently gives wrong information and hallucinates. What are the consequences for a taxpayer
You Owe IRS or Franchise Tax Board (FTB) Taxes for 2024 – What Comes Next?
You Owe Taxes for 2024 The October 15th, 2025 tax deadline just expired. Many taxpayers have filed their IRS or Franchise Tax Board (FTB) tax returns only to realize they owe a significant amount of money. Given the financial pressures many businesses and families are facing these days, they may not be in a position
IRS Furloughs Thousands as Shutdown Continues: What It Means for Taxpayers Ahead of the October 15 Filing Deadline
IRS Furloughs Thousands As the federal government shutdown continues, the Internal Revenue Service (IRS) has furloughed nearly half of its workforce, significantly disrupting tax administration just days before the critical October 15 filing deadline. The shutdown, which stems from a lapse in congressional appropriations, has left approximately 34,000 IRS employees, roughly 46% of the agency’s
What the Government Shutdown Means for Taxpayers
Government Shutdown As of 12:01AM, October 1, 2025, the federal government has shutdown due to a lapse in appropriations and inability to pass the funding bill. So, what does the government shutdown mean for taxpayers, businesses, and tax professionals navigating ongoing controversies and enforcement matters? 1. What a Shutdown Is (and What it Is Not)
Tax And Vice – Tax Court Limits Cannabis’ Businesses Ability to Claim Pass-Through Deductions
Tax Court Limits Cannabis Pass-Through Deductions The US Tax Court’s Recent Decision in Savage v. Commissioner (165 TC 5) struck a blow to the cannabis industry which already receive unfavorable tax treatment. Section 280E of the Internal Revenue Code already prevents cannabis businesses for taking deductions for items most other businesses can claim deductions for
IRS Announces New Tax Rates for 2024
IRS Tax Rates for 2024 The IRS recently announced new tax rates for the 2024 calendar year. The tax tables can be found below. The standard deduction will be $29,200 for Married Filing Join Taxpayers, $21,900 for Taxpayers filing head of household, and $14,600 for single taxpayers and Married Filing Separate Taxpayers. Learn more about
US Tax-Savings for your Intellectual Property
Intellectual Property Are you a business using intellectual property – such as software, trade secrets, trademarks or tradenames, copyrighted materials, patents, or other intellectual material? Strategies for US tax-savings for your intellectual property may add substantial value to your business! Strategy 1:Take advantage of special federal tax deductions and tax credits, as well as capital
Self-Employment Taxes
What Are Self-Employment Taxes?Self-employment taxes include both Social Security tax and Medicare tax which are then paid to federal and state taxing agencies. Wage-earning employees also pay these taxes with one major difference. Typically, employers are required to match the amount of social security and Medicare tax withheld from employee paychecks, while self-employed persons are
What is the Tax Gap
The “tax gap” is a term coined to describe the amount of tax taxpayers fail to pay each year. Also known as noncompliance taxpayer debt, it is the gap between what taxpayers legally owe to the government and what is actually paid and collected from taxpayers for the year. The primary reasons behind the tax