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Question: Erek made contributions to his Roth IRA in 2020, 2021 and 2022. He later found out his modified AGI was over the limit, so he was not eligible to make the contributions. He withdrew all of them in 2023. How should he report this? Does he need to go back and amend to pay […]

Being able to carry net operating losses forward and backward is a significant benefit the tax code provides businesses. However, the process for claiming and substantiating the deduction can be intimidating because there are specific rules that apply, and applying them to a taxpayer’s specific situation can sometimes be complicated. Below, you’ll find a few

The IRS has proposed regulations that would classify some charitable remainder annuity trusts (CRATs) as listed transactions. If finalized, the regulations would bar taxpayers from pairing CRATs with single-premium immediate annuities (SPIAs) to avoid recognizing all or a portion of the annuity payments as taxable income or capital gains. A tax strategy is designated as

Knowing how to amend a tax return is an essential skill tax pros need for those situations where they must rectify mistakes, claim missed deductions, report additional income or adjust filing status. This ensures not only accuracy and compliance but also a sense of trust and satisfaction with your clients. They want to know you’re

Question: The Mmbaga family owns a strip mall in Dallas, Texas. There are five family members who each own 20%. Ezekiel, the father, is elderly, with seemingly not much longer to live. The family devises a plan for the four family members to each gift their entire interest in the property to Ezekiel. Then, he

“I want to run something by you,” Gary said. He settled into the slick leather chair directly across from Charlie, his tax consultant for the past 25 years. The office was quiet. “My new financial advisor mentioned a tax savings strategy that sounded too good to be true.” Gary, an owner of a successful consulting

Question: The Compassionate Hearts Foundation is a §501(c)(3) nonprofit organization that helps individuals pay for medical care. The organization received cash donations from two individuals – $50 was given by one and $85 was given by the other. The individual who made the $85 donation was given a meal voucher to a local restaurant as

Tax-exempt organizations, such as charities and non-profits, are subject to taxation on income generated from unrelated business activities. Failure to comply with reporting requirements can result in penalties and fines for both the organization and its officers. You need to know the ins and outs of Form 990-T to ensure the best outcome for your

The IRS has released its data book for the 2023 fiscal year to provide information on returns filed, taxes collected, refunds issued, enforcement, the agency’s workforce and other activities. The IRS’s 2023 fiscal year ran from Oct. 1, 2022, through Sept. 30, 2023, and the data book provides 35 statistical tables breaking down various aspects

Identity theft is everywhere, and tax pros continue to be a favorite target for thieves to obtain taxpayer information. Identity thieves look to steal the tax pro’s third-party authorization information and use it to access taxpayer information directly from the IRS. Recently, the IRS has stepped up its efforts to fight this growing area of