By month: February 2024

Ouch! The Estimated Tax Penalty Is at a 16-Year High

Due to the rise in interest rates, the non-deductible interest penalty for underpaying estimated taxes is at a 16-year high of 8 percent. Both individual and corporate taxpayers can avoid this penalty by paying enough estimated tax during the year. If this isn’t done, individual taxpayers can obtain a penalty waiver from the IRS in limited circumstances. No such relief is available for corporations.

The IRS Dirty Dozen List: More Than Just a Gimmick

The IRS’s annual Dirty Dozen list may sound like a gimmick, but taxpayers should take it seriously. It’s a road map to current IRS audit priorities and a warning to taxpayers and tax professionals to avoid fraudulent and abusive tax schemes or strategies. Use of a strategy on the list can not only result in an audit, but make it impossible to avoid substantial tax penalties.

Working Overtime? Take Advantage of Tax-Free Supper Money

The Tax Cuts and Jobs Act (TCJA) changed the landscape for a host of business meal and entertainment deductions. For supper money, the TCJA did damage, in both the short and the long term. But the deduction, albeit damaged, continues in place for tax years 2018 through 2025, before its death in 2026.

Download Your New 2024 Desktop Reference Guide Now

Download this two-page guide so you have a handy desktop reference for the 2024 corporate and individual tax rates, estate tax rates, self-employed tax rates, Social Security and Medicare tax rates, capital gains rates, standard mileage rates, standard deductions, luxury auto depreciation limits, and select retirement and IRA limits.

Download this PDF for the Already Enacted 2024 Tax Law Changes

As a subscriber, you likely know you are going to see some big tax changes this year. Some are already in place. To help you remember what they are, and to make them available for a quick look anytime you like, download this PDF.

Improper ERC Claim? Pay Back 80% of the ERC and Keep the Rest

First question: Is your ERC claim improper? Are you sure? If you’re sure, the IRS has a proposition for you. Pay back 80 percent of all your ERC claims, and keep the remaining 20 percent. But hurry, this deal expires soon.

Updated Jan. 2024: Download IRS Key Contact Information and Links

Would you like to have, at your fingertips, updated IRS key contact info and helpful links for information about amended returns, estate and gift taxes, tax transcripts, power of attorney, stimulus checks, tax help for businesses, and many other topics? If so, download the PDF linked in this article.

The Added Tax When You Sell Qualified Improvement Property (QIP)

You need to think about the sale of your rental property when you claim depreciation on your qualified improvement property. Gains may be subject to higher-than-expected tax rates due to Section 1245 and 1250 ordinary income recapture and other factors. Planning your depreciation methods can significantly impact your current tax liabilities and long-term taxable gains when you sell.

Options for Overfunded 529 College Savings Accounts

Discover flexible solutions for your overfunded 529 College Savings Plan, including changing the beneficiaries, using the money for other than college, and rolling the money over to a Roth IRA.


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