How you can sail through the 2021 tax season

Year 2021 was challenging. There’s no doubt that navigating through the pandemic has been tough on everyone. If there’s anything that can be done to begin 2022 on a high note, why not make sure you are prepared for the 2021 tax season and ready to file your federal income tax return when the IRS …

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Made for TV – Top Tax Court cases of 2021 the sequel

As they say on the TV show American Greed ……”wanna know more?” Well, here’s a few more of the top IRS cases of 2021 that would fill a few more episodes. Orlando sisters in a $25 million tax fraud scheme, a Russian Bank founder evading tax upon renouncing his U.S. citizenship and an ex-pastor in …

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Made for TV – Top Tax Court cases of 2021

Have you ever watched the television show American Greed? These Top Tax Court cases of 2021 would fill more than a few episodes. Embezzlement of funds from a nonprofit, a family fraud ring that stole millions in COVID-relief funds, a billion-dollar Ponzi scheme used to buy sports teams and luxury vehicles and more. Don’t miss: …

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New 2022 ruling for R+D expense amortization

There’s been a big change for R+D expense amortization for tax years beginning after December 31, 2021. Domestic R+D expenses must now be amortized over five years and overseas R+D expenses must be amortized over 15 years. Don’t miss: Business meals 100% deductible in 2022 This change is effective for tax year 2022 for calendar …

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Business meals 100% deductible in 2022

In the last few years, we have witnessed a breathtaking amount of tax legislation. There were the Trump tax cuts back in 2017 and then came the payroll protection program more recently just to name a few. One of the most overlooked changes has to do with the deductibility of business meals. Don’t miss: Gift …

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IRS Taxpayer Advocate Service struggles to keep up

As mentioned recently in a blog by the Taxpayer Advocate Service (TAS), the Congress of the United States created the service to be a safety net for taxpayers – the voice of taxpayers – to protect their rights and propose recommendations to improve tax administration. Struggles at IRS due in part to the pandemic have …

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Clarifying the 2021 changes to the R+D credit

Research (R+D) tax credits are quite lucrative, often bringing six figure and larger cash benefits to Architectural and Engineering (A+E) firms. R+D tax credits protect and improve cashflow by reducing tax liability dollar-for-dollar and in some cases providing refunds of tax previously paid. R+D credits can apply to both federal and state tax liabilities effectively …

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New IRS tools for catching mistakes on 1042-S forms

The IRS has announced a new online tool for those preparing Forms 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding. The free tool is voluntary and will allow those who are preparing a 1042-S form to input a draft 1042-S into the online tool prior to filing the form in an effort to preemptively …

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Gift tax and other exclusions increases for 2022

Every year, many transfer tax and foreign item figures are adjusted to reflect increases in cost-of-living expenses, following the average Consumer Price Index. The IRS has recently announced gift tax and other exclusions increases updated for inflation for 2022. Don’t miss: Staying in touch with the IRS Gift Tax Annual Exclusion: Adjusted up to $16,000 …

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Staying in touch with the IRS

Social media is not only great for keeping up with friends and family. It’s also a tool for taxpayers to use for staying in touch with the IRS through IRS verified social media platforms. Those platforms include: Facebook: Shares information and news updates that are available for everybody. Information is also available in Spanish. Instagram: …

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