Breaking News

Treasury Secretary Yellen Addresses Global Minimum Tax Treatment of the U.S. Federal-Level R&D Tax Credit Program

Peter J. Scalise

On March 21st, Treasury Secretary Janet Yellen indicated that she was optimistic that the U.S. would be able to maintain the value of its Federal-Level R&D Tax Credit Program that was originally introduced into the U.S. Internal Revenue Code under President Reagan’s Economic Recovery Tax Act of 1981 for companies...

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Marital Dissolution Planning and Crowdfunding

Divorce Taxation

Sidney Kess, CPA, J.D., LL.M.

When couples split up, it’s still common for one party to make support payments to the other. Sometimes this continues until the death of the party receiving support; sometimes it...

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The Bottom Line

Tax Strategies

Marital Dissolution Planning Post TCJA

Sidney Kess, CPA, J.D., LL.M.

The IRS reports that nearly 600,000 taxpayers claimed an alimony deduction on their 2015 returns (the most recent year for statistics) (https://www.irs.gov/pub/irs-soi/soi-a-inpd-id1703.pdf). The Tax Cuts and Jobs Act of 2017...

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Feature Stories

Tax Court Upholds Strict Adherence to Requirements for IRS P…

Kathleen M. Lach

A recent decision issued by the U.S. Tax Court in Graev v. Commissioner 1 could prove pivotal in cases where a practitioner has requested abatement of penalties for their client...

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Financial Planner

Understanding Pay Options with the new DOL Regulations

Jerry Love, CPA/PFS, CFP, CVA, ABV, CITP, CFF, CFFA

This article is a follow up to the prior article which highlights the new regulations for the Fair Labor Standards Act (FLSA) from the Department of Labor (DOL) raising the...

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Client Tax Tip

How Interest Can Be Deducted When Money is Borrowed to Buy I…

Julie Welch, CPA, CFP

If a taxpayer borrows money to purchase investments, such as mutual funds, bonds or stock, the interest paid on the loan can usually be deducted. There are two limitations, however...

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Editor Blog

CPAs Wanting to Do It Themselves

Joshua Fluegel

In its ongoing effort to stay on the forefront of developments in tax profession technology, CPA Magazine talks to Mark Strassman, president of Make My Day CPA. Strassman discusses CPAs’...

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Tax Checklist

Non-Grantor Trust Planning Tips Benefit Many Clients

Martin M. Shenkman, CPA, MBA, PFS, AEP, JD

Why You Must Understand the New Planning Benefits of Non-Grantor Trusts The 2017 Tax Act dramatically changed tax planning. In the new tax environment, there are a number of significant income...

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The IRS recently reported a 16% drop in audits, a 40% drop in levies, and a 9% drop in liens for 2016 compared to 2015.This information was released as part of the IRS’s 2016 Data Book, which reports on the agency’s activities for the twelve months ending on Sept. 30, 2016.

The IRS audited over 1 million 1040 returns in 2016, almost 16% fewer than 2015 and the lowest rate in more than a decade. Although, the IRS’s enforcement budget was reduced by $107 million, the IRS collected a record $1.8 trillion of individual income tax and $3.3 trillion overall and refunded over $426 billion.

Especially important to practitioners, the IRS claims to have improved its live telephone assistance. It claimed it provided live telephone assistance over 25.5 million times, an increase of 40% over last year. To that end, nine tax practitioner organizations, including the AICPA, just presented federal lawmakers recommendations on how to improve the IRS. Services would include centralizing an “executive-level” practitioner unit within the IRS.

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