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Question: Mary Ann buys health insurance through the health insurance marketplace, but did not receive a Form 1095-A, Health Insurance Marketplace Statement, showing the months of coverage and premiums paid for the year. She neglected to mention her marketplace insurance to Grace, her tax preparer. Grace e-filed the return without Form 8962, Premium Tax Credit, […]

The indictment of a Texas taxpayer for failing to report profits from cryptocurrency transactions on his federal income tax return likely signals the beginning of an increased IRS focus on taxpayers who don’t include the transactions on their returns. Additional indictments against other taxpayers are expected to follow after the IRS’s November 2022 announcement that

Question: Robert and Patrice are a married couple who file their returns jointly. Robert, 62, retired last year after working for many years as a teacher. His only source of income for 2023 was his teacher’s retirement plan. Patrice, 49, is still working and contributes to her 401(k) plan through her job. For 2023, they

On Feb. 29, 2024, the IRS announced it would resume its campus nonfiler enforcement programs. IRS campus nonfiler programs have been scarce since 2016 and almost non-existent since the beginning of the pandemic in March 2020. The IRS will initially target about 2% of the known population of nonfilers. Over the next few months, the

The IRS is continuing to expand its efforts to collect from high-income individuals who are not fulfilling their tax obligations by sending out compliance letters in more than 125,000 cases where a taxpayer did not file a return between 2017 and 2021. The efforts are focusing on cases where the IRS received third-party information, including

Question: John Smith registered a Colorado limited liability company (LLC) with the Colorado Secretary of State on June 29, 2014, and it is still in operation. He heard that LLCs must register with FinCEN to report beneficial ownership information (BOI). Is he required to file the BOI report? Answer: Yes, Mr. Smith is required to

To address the complexities and challenges within the tax administration system, the National Taxpayer Advocate (NTA) has put forth a comprehensive set of legislative recommendations in its 2024 Purple Book. These recommendations are crafted to enhance taxpayer rights and streamline tax administration processes. This initiative underscores the NTA’s commitment to fostering an equitable and efficient

The rules for claiming the earned income tax credit are complicated, and it’s easy to make mistakes when preparing a return that claims it. Taxpayers who know they qualify for the credit are often afraid to claim it themselves, so they turn to you for help. However, due to the complexity of the credit, a

New rules are in effect for 2024 that allow beneficiaries of 529 plans to roll over unused funds to a Roth IRA. These changes are intended to ease concerns about the tax implications of withdrawing money that might remain in an education savings account when it is no longer needed to finance the beneficiary’s education.

Question: Donna got an IRS letter regarding her level of due diligence when preparing a Form 1040 that included an EIC. The IRS Letter 4858 indicated that Donna may not have met her due diligence requirement and that no action need be taken. The letter went on to state that the IRS would continue to