The IRS recently issued a news release advising taxpayers on how to choose the right tax preparer or accountant to prepare tax returns. While many people with simple tax returns such as wage earners may not need the services of a tax preparer or accountant, many people with potentially complex tax returns such as business
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IRS Provides New Guidance on Section 530 Relief for Employment Tax Audits
Section 530 Relief The IRS recently provided new guidance on how it will apply Section 530 Relief to Employment Tax Audits. The IRS issued Rev. Proc. 2025-10 which announced the IRS’ updated positions on Section 530 relief available to taxpayers in Employment tax audits who were found to have misclassified workers as independent contractors. The
IRS Announces Business Mileage Rate for 2025
IRS Business Mileage Rate for 2025 The IRS recently announced the business mileage rate for 2025. Business owners can typically claim a deduction of 70 cents per mile driven for tax purposes in 2025. While the business mileage deduction is an especially useful deduction for business owners, many business owners are not taking all the
Six Year-End Tax Tips to Help Lower Your 2024 Tax Liability
Tax Tips As 2024 nears its end, there is still time to lower your income taxes. Strategic moves like stock trades, charitable donations, and retirement contributions can significantly impact how much you owe. With certain provisions of the Tax Cuts and Jobs Act set to expire after 2025—potentially leading to higher taxes for some—now is
End of Year Tax Planning Essentials
Tax Planning Essentials As year another year closes, many of us have several things we need to take care of before the year ends. You may find yourself purchasing gifts, preparing for the holidays, and doing other tasks. I hate to be a grinch, but you may need to add some end of year tax
Did a Tax Protester Really Win at Tax Court?
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
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