An educational assistance program is an employer’s written plan to provide employees with undergraduate or graduate-level educational assistance. These programs allow employers to pay student loan debt and other education expenses tax-free. Eligible expenses Educational assistance programs can help pay for: Books Equipment Supplies Tuition and other fees Qualified education loans Loan paymentsThese programs can be used to…… Read More

There are two education tax credits designed to help offset education costs: the American Opportunity Tax Credit and the Lifetime Learning Credit. Eligibility requirementsFor both tax credits, to be eligible: The taxpayer, their spouse or their dependents must take post-high school coursework in tax year 2024. The student must have a Form 1098-T, Tuition Statement, from an eligible educational institution. There…… Read More

Following inaccurate tax advice from social media influencers can have bad consequences. Taxpayers can protect themselves from misinformation and scams by following the IRS verified social media accounts and e-news services. IRS social media platforms Visit IRS.gov to get direct links to IRS verified social media accounts. IRS has accounts on: X, formerly Twitter – Information for taxpayers, businesses, tax-exempt organizations, tax…… Read More

Mediation – also known as Alternative Dispute Resolution – can help taxpayers resolve tax issues early and efficiently. The process provides taxpayers a faster, more collaborative and cost-effective approach to case resolution. The traditional appeal process is still available for taxpayers who choose it. Mediation might be right for a taxpayer if: • The taxpayer…… Read More

he IRS has several options to help businesses who have discovered they have questionable ERC claims.  Claim withdrawal: Given the large number of questionable claims identified in the recent review, the IRS continues to urge ineligible businesses with unprocessed claims to consider the ERC Withdrawal Program to avoid future compliance issues. The IRS will treat the claim as…… Read More

The IRS reminds businesses about these other common issues being seen. The agency has continued to issue warnings involving these seven areas: Too many quarters being claimed. Some promoters have urged employers to claim the ERC for all quarters that the credit was available. Qualifying for all quarters is uncommon, and this could be a sign…… Read More

The Department of the Treasury and the Internal Revenue Service today issued final regulations updating the required minimum distribution (RMD) rules. The final regulations reflect changes made by the SECURE Act and the SECURE 2.0 Act impacting retirement plan participants, IRA owners and their beneficiaries. At the same time, Treasury and IRS issued proposed regulations, addressing additional…… Read More

promoters, social media peddling inaccurate eligibility suggestions. Taxpayers urged to talk to a trusted tax professional, not rely on marketers or social media for tax advice IR-2024-187, July 15, 2024 WASHINGTON — The Internal Revenue Service issued a consumer alert today following bad advice circulating on social media about a non-existent “Self Employment Tax Credit”…… Read More

As part of continuing efforts to combat dubious Employee Retention Credit (ERC) claims, the IRS is sending letters to thousands of taxpayers notifying them of disallowed ERC claims. The IRS is rejecting claims to entities that did not exist or did not have paid employees during the period of eligibility. These letters are part of an…… Read More

A backdoor Roth contribution is used by taxpayers whose MAGI is too high for a direct Roth IRA contribution because the MAGI limit does not apply to Roth conversions. When this occurs, taxpayers can still make a nondeductible traditional IRA contribution by April 15 of the following tax year to be treated as a contribution…… Read More