With 87,000 new agents, here’s who the IRS may target for audits

Jeffrey Coolidge | Photodisc | Getty Images As the Democrats’ spending plan moves closer to a House vote, one of the more controversial provisions — nearly $80 billion in IRS funding, with $45.6 billion for “enforcement” — has raised questions about who the agency may target for audits. IRS Commissioner Charles Rettig said these resources … Read more

Reconciliation bill includes nearly $80 billion for IRS funding

Charles P. Rettig, commissioner of the Internal Revenue Service, testifies during the Senate Finance Committee hearing titled The IRS Fiscal Year 2022 Budget, in the Dirksen Senate Office Building in Washington, DC, June 8, 2021. Tom Williams | Pool | Reuters Senate Democrats on Sunday passed their climate, health and tax package, including nearly $80 … Read more

Strong returns are hard to find in 2022. Three tax savings strategies to sock away a few bucks

In a year when attractive market returns are scarce, investors would do well to squeeze a few bucks from their portfolio through tax savings opportunities. July’s performance helped the markets curtail some of their 2022 losses, as stocks rebounded and bond yields retreated. Still, the S & P 500 is still off about 13% for … Read more

Employee stock purchase plans may be risky. What to know

How employee stock purchase plans work Typically offered to all employees, ESPPs may allow you to purchase company stock at a discount of up to 15%, capped at $25,000 per year for tax-qualified plans. The plan collects after-tax contributions from each paycheck during an “offering period,” and uses the funds to buy company stock on … Read more

This play on an oil price surge offers investors an attractive yield — but lots of complexity

Income-hungry investors hoping to scoop up attractive yields and a fresh play on this year’s rising oil prices are setting their sights on a different corner of the energy market. Master limited partnerships offer investors a way to capitalize on the exploration, transport and processing of natural resources, including oil and gas. So-called MLPs are … Read more

How soaring inflation may deliver a higher tax bill for retirees

Daniel Grill | Getty Images Why inflation could lead to surprise tax bills Each fall, the IRS makes inflation adjustments for the coming year on a range of tax provisions. The IRS boosted federal income tax brackets for 2022 and adjusted many other provisions, including standard deductions, 401 (k) plan limits and more. But other … Read more

the pros and cons of a new Republican plan

Children draw on top of a Treasury check prop during a rally in front of the US Capitol on Dec. 13, 2021. Alex Wong | Getty Images Millions of families came to count on pandemic-era monthly child tax credit checks of up to $ 300 per child, a program that expired last December. Now, a … Read more

These 4 mid-year tax strategies can trim next year’s bill from the IRS

seksan Mongkhonkhamsao | Moment | Getty Images 1. Review tax withholdings When starting a new job, you fill out Form W-4, covering how much your employer withholds from your paychecks for federal taxes. But you need to revisit those withholdings, especially for major life changes such as marriage, having children or starting a side business. … Read more

Tax return backlog is ‘crushing the IRS’ as pileup exceeds 21 million

IRS Commissioner Chuck Rettig testifies before the Senate Finance Committee on April 7, 2022. Kevin Dietsch | Getty Images News | Getty Images The IRS backlog of tax returns has swelled over the past year, despite efforts to clear the pileup, according to an agency watchdog. There were 21.3 million unprocessed paper returns as of … Read more

IRS making progress on backlog, but millions remain unprocessed

Charles P. Rettig, commissioner of the Internal Revenue Service, testifies during the Senate Finance Committee hearing titled The IRS Fiscal Year 2022 Budget, in Dirksen Senate Office Building in Washington, DC, June 8, 2021. Tom Williams | Pool | Reuters The IRS is making progress on its backlog of unprocessed tax returns, but millions remain, … Read more