The modern wooden replica of the Trojan Horse, created in 1975 by the Turkish architect İzzet Senemoğlu, stands today at the ruins of Troy archaeological site in Turkey. (Photo: Turkish Archaeological News) Two Nigerian men, one living in North Dakota and the other in Mexico, have been charge with in connection with a scheme to allegedly steal client information from several Massachusetts tax preparation firms’ computer networks. Federal investigators allege that once the duo got the tax data, they filed fraudulent returns and had the associated false tax refunds deposited in bank accounts the pair controlled. In total, the scheme’s... Read more →
Streaming fans in Louisiana soon could be paying more to watch their favorite shows and movies. This time, though, they can’t blame the services providing the programming. Their ire over more costly entertainment is due to Pelican State lawmakers who now are meeting in a special session to focus on Gov. Jeff Landry has proposed a reworking of Louisiana’s tax structure. More subject to sales tax: Part of the tax overhaul is an expansion of s part of targets subject to Louisiana’s 4.45 percent state sales tax. It would be levied on several digital products and services, including online news... Read more →
Unsplash+ in collaboration with Getty Images I haven’t yet seen any of those holiday car commercials with big red bows atop the gifted vehicles. But is a good time to start thinking of new transportation, particularly if you’re considering an electric vehicle (EV). That’s because under the second Trump Administration, and with the support of a Republican-led House and Senate, the $7,500 EV tax credit soon could be history. Trump's tax credit aversion: While Donald J. Trump has vacillated between loving or hating electric vehicles, he’s more consistently been opposed to them, or at least the associated tax breaks. "Tax... Read more →
If your company received an incorrect Employee Retention Credit (ERC) payment, you have 10 more days to set things right with the Internal Revenue Service. The deadline to report your erroneous ERC claim and repay a portion of the improperly paid funds is next week, Friday, Nov. 22. After that, the IRS’ second ERC Voluntary Disclosure Program, or VDP, will be closed. Countering aggressive promoters: The tax agency offered this and an earlier VDP opportunity because many business owners filed claims at the urging of aggressive tax credit promoters. The ERC mill agents convinced many business owners that their companies... Read more →
Wyoming is not just wide open for these cowboys driving cattle in the state's Upper Green River Valley. It also is the most tax competitive state in the country. (Photo Credit: Theo Stein/U.S. Fish & Wildlife Service) The Tax Foundation’s annual State Business Tax Climate Index is no more. But if you’re a fan of the tax policy nonprofit’s assessment of the country’s various tax structures, don’t fret. The Tax Foundation has released its State Tax Competitiveness Index, which is the same analysis with a new name. The rebranding, according to the Washington, D.C.-based group, better reflects the original index’s... Read more →
The construction sector is one of the areas in which veteran-owned companies play a major role. Veterans Day is tomorrow, Nov. 11. This solemn day is one of the few federal holidays that isn't shifted to Monday. It is always commemorated on Nov. 11 because the 11th hour of the 11th day of the 11th month in 1918 was the specific moment marking the armistice between World War I's Allied forces and Germany, ending the fighting on the Western Front. The Veterans Day date has held firm, but its focus was expanded in 1954. That year, at the urging of... Read more →
Photo by Mick Haupt on Unsplash The 2024 general election is over. Finally. Now we sort through the results to try to determine how what we did on Nov. 5 will affect us. The election of Donald J. Trump to a second term, along with Republican control of the Senate and likely the House, will likely simplify a lot of federal tax questions in 2025, the final year of many individual Internal Revenue Code provisions in the Tax Cuts and Jobs Act of 2017. But as noted back on Oct. 26, tax questions, not just candidates, also were on ballots.... Read more →
iStock Texas’ unofficial motto has always been go big or go home. Or, in the case of one former tax professional, go out of business. The U.S. District Court for the Northern District of Texas on Nov. 1 entered permanent injunctions against Charles Dombek and The Optimal Financial Group LLC barring both from promoting any tax plan that involves creating or using sham management companies, deducting personal non-deductible expenses as business expenses, or assisting in the creation of “captive” insurance companies. The injunctions also prohibit Dombek from preparing any federal tax returns for anyone other than himself and Optimal from... Read more →
Prescription co-pays are just one medical expense that can be paid with money in a healthcare flexible spending arrangement, or FSA. If you watch cable television (or like me, too much cable TV), you know that it’s Medicare open season for older Americans. Many younger people also are making medical selections for the coming year from the cafeteria of benefits offered by their companies. The biggest employer-provided benefit is health care. In addition to medical insurance coverage, lots of businesses also offer their workers the option of opening a healthcare medical flexible spending arrangement (or account), popularly known as an... Read more →
Photo by Marcus Aurelius Business success, especially in the retail sector, depends a lot on prioritizing customers and their needs. Sometimes that means making physical changes to an establishment. Uncle Sam might be able to help. The federal tax code has a couple of incentives for businesses that make structural adaptations or other accommodations for employees or customers with disabilities. One tax break is the Disabled Access Credit. As a credit, it provides a dollar-for-dollar offset of tax due. The other is a tax deduction for costs to remove mobility barriers. A deduction reduces a business’ gross income so that... Read more →
Infrared satellite view of Hurricane Storm Rafael on late afternoon Nov. 5, 2024, (Image via National Oceanic and Atmospheric Administration) I apologize to all who live along the Gulf Coast. When I mentioned in the ol' blog's November tax moves column there to the right that we'd already hit the range of hurricanes predicted this year by Uncle Sam's forecasters, it crossed my mind I might jinx things. Not that I think I have that kind of power, but just days later Tropical Storm Rafael formed. This evening, he strengthened to Hurricane Rafael, so make of it what you will.... Read more →
Photo by Jill Wellington Thanksgiving, of course, is the main focus this month. We spend the days leading up to the holiday thinking about what we’re going to cook, or eat if someone else is doing the kitchen heavy lifting. And figuring out a tactful way to deal with that, shall we say, out-there uncle. Good luck! November is also a great month to make sure we don't fall afoul of tax turkeys. To prevent that, there are some tax moves you can make this month. Since it’s already four days into the month — my bad; I got caught... Read more →
Since the Supreme Court in 2018 let states allow betting on college sports, sportsbook activity, like this in a Las Vegas casino, has pick up substantially. (Photo by Kay Bell) College and professional sports dominate screens right now. And sports wagering has increased annually since the Supreme Court of the United States in 2018 opened the door for states to allow sports betting on collegiate competitions. The high court’s move also made it possible for the Internal Revenue Service to collect on winning bets placed at legal sportsbooks. For the most part, those operations report the amounts that went into... Read more →
The Internal Revenue Service does more that issue red cards for tax penalties. Filing mistakes, unintentional or otherwise, could mean costly penalties, some of which increase due to inflation. (Photo by BOOM 💥) The United States' tax system depends on voluntary compliance by taxpayers. But Uncle Sam is no fool. He and his tax collectors are believers of the adage "trust, but verify." The Internal Revenue Service also follows up on that verification with penalties when it finds taxpayers — and the professionals we pay to take care of our taxes — aren't fulfilling our tax responsibilities on our own.... Read more →
Whether your dream retirement is traveling the world or enjoying your own backyard, you need to save now so you can enjoy it. One way to ensure your post-work years are golden is to take full advantage of tax-favored retirement plans. Regardless of who wins the White House, the Social Security system is going to get a lot of attention in the coming years. The aging population, combined with the much ballyhooed birth dearth, is going to put more pressure on Uncle Sam’s retirement program. Even if the new president and Congress can agree on ways to bolster Social Security,... Read more →
Photo by Brett Jordan Here’s a subject line you never want to see in your email box: There’s a problem with your tax return. But that is what’s happening to some taxpayers. No, it wasn’t from the Internal Revenue Service. Uncle Sam snail mails you a tax notice with questions about your filing. Rather, it was an email from TurboTax to its users with the subject line — CRITICAL NOTICE: Regarding your 2023 TurboTax return And here’s the message — Hi there, We’re contacting you because there might be an issue with the accuracy of your 2023 tax return. Due... Read more →
Photo by Julentto Photography on Unsplash International travel is a dream for many Americans. Some enjoy their jaunts so much, they decide to move instead of just vacation abroad. A foreign relocation means many changes. But one thing doesn’t change. U.S. citizens who live and work abroad still owe U.S. taxes on their income. Thanks to Uncle Sam's reliance on a worldwide tax system at the individual level, the U.S. Treasury gets a piece of your earnings regardless of where in the world you make it. There are, however, some tax provisions that can help U.S. workers in other countries.... Read more →
Before law changes, the now inflation-indexed Alternative Minimum Tax, known as the AMT, seemed to work like an ATM for the U.S. Treasury. When the AMT was created in 1969 to ensure wealthy individuals paid at least some tax, it wasn't indexed for inflation. Until that changed with the 2017 tax reform law, the AMT adversely affected a lot of less-wealthy taxpayers. (Photo by Ali Mkumbwa on Unsplash) What's worse than figuring your tax bill? Having to figure a second, higher, parallel amount you might owe. That's a situation that taxpayers who owe the Alternative Minimum Tax, or AMT, end... Read more →
Plus, a look at what next year’s inflation bumps mean to estate planning, gifts you give before you go, youngsters' investment earnings, and more. Leonardo DiCaprio in "The Great Gatsby," the 2018 movie version of F. Scott Fitzgerald's novel. (Warner Brothers Pictures promotional photo) “Let me tell you about the very rich. They are different from you and me.” F. Scott Fitzgerald didn’t add taxes in his elaboration of those differences in his 1925 short story “The Rich Boy,” but he could have. While most of us middle-income taxpayers get our money working for wages, wealthier individuals tend to let... Read more →
And the disasters (and tax relief) keep coming. A glacial lake outburst in the Juneau, Alaska, area in August produced flooding in the state capital, prompting a major disaster declaration and a new May 1, 2025, tax deadline. Homes and roads in northern Juneau, Alaska, were inundated on August 8, as flood waters overtopped the banks of the Mendenhall River. The flood was caused by glacial lake outburst from Mendenhall Glacier near the Alaskan state capital. A U.S. Geological Survey (USGS) time-lapse video from May 1 to Aug. 7 captures the dramatic rise and fall of water levels in Suicide... Read more →