Tax Court Win In the recent Swanson v. Comm’r (TC Memo 2024-105) US Tax Court case, the Tax Court slapped a tax protestor with a $25,000 frivolous submission penalty. The Tax Court Opinion was very clear that the law disapproved of the Tax Protestor and his frivolous arguments, but nevertheless the Tax Court may have
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What to Know When Making Tax Deductible Charitable Contributions
Tax Deductible Charitable Contributions We are coming to the end of the year, and a great way to do some end-of-year tax planning and help your community is to make a charitable contribution. Charitable contributions can be tax deductible, but the tax code places requirements on donors who wish to take a tax deduction. This
IRS Announces Interest Rates for the First Quarter of 2025
IRS Interest Rates The IRS recently announced the interest rates for the first quarter of 2025 that will be charged on underpayments for the first quarter of 2025. Taxpayers who have past due or unpaid taxes will be charged an annual rate of interest of 7% for the first quarter of 2025. The current rate
Do I have to Pay Tax on That? Judgments, Settlements, and Awards from Lawsuits
Do I have to Pay Tax on Judgments, Settlements, and Awards from Lawsuits? We often get asked “Do I have to pay tax on that?” So, what are the consequences of judgements, settlements, and awards from lawsuits? A recent California Office of Tax Appeals (OTA) demonstrates the tax consequences of a lawsuit are not always
IRS Introduces New 401(k) and IRA Contribution Limits for 2025
IRS Contribution Limits for 2025 The IRS recently announced new 401(k) and IRA contribution limits for 2025. Taxpayers can generally contribute up to $23,500 to their 401(k) accounts in 2025. For those with IRA accounts, taxpayers can contribute up to $7,500 in 2025. The IRS also announced the catch-up contribution limits for taxpayers 50 years
The Tax Gap for 2022: Is Every Dollar of the $696 Billion Tax Gap a Problem?
Tax Gap 2022 The IRS recently announced it estimated the Tax Gap for the 2022 tax year is $696 billion. The Tax gap is the difference between the total taxes Americans are supposed to pay and the amount of taxes actually paid on time. According to the IRS, 77% of the tax gap results from
Five Essential Tax Planning Tips for the Middle Class
Tax Planning Tips Navigating the tax code can be challenging, especially for middle class households which are often caught in a balancing act between maximizing tax savings and managing their everyday expenses and cash flows. The good news is there are several strategies available to ensure you are taking full advantage of deductions, credits, and
Millionaire Tax Strategies for Middle Class Earners
Millionaire Tax Strategies Effective tax planning is not only for the wealthy; middle class families can benefit significantly from adopting similar strategies. Millionaires are proactive about reducing taxes, particularly in retirement, which helps them preserve more wealth. Below are some key millionaire tax strategies for middle class earners and how these strategies can be applied
How to Stay Off the California Franchise Tax Board (FTB) 500 Delinquent Taxpayer List
Delinquent Taxpayer List The California Franchise Tax Board or FTB publishes a list of the top 500 largest past due tax balances in the state. Any taxpayer who owes $100,000 or more to the Franchise Tax Board is at risk of appearing on the top 500 delinquent taxpayer list, known as the FTB 500 list.
IRS Announces Reopening of ERC Voluntary Disclosure Program
The IRS recently announced it was re-opening a second Employee Retention Tax Credit, or ERC, Disclosure Program. Under the terms of the ERC Voluntary Disclosure program, employers who submitted incorrect ERC claims can come forward and file a disclosure. In exchange for coming forward, those employers will receive a 15% discount on the tax owed