Special Services, Inc.

Newsletters

Social Security Wage Cap and Benefit Amounts Increase for 2024, Social Security Fact Sheet: 2024 Social Security Changes; Social Security Announces 3.2 Percent Benefit Increase for 2024
For 2024, the Social Security wage cap will be $168,600, and social security and Supplemental Security Income (SSI) benefits will increase by 3.2 percent. These changes reflect cost-of-...

Taxpayers Impacted by Terrorist Attacks in Israel Granted Tax Relief, Notice 2023-71; IR-2023-188
The IRS announced tax relief for individuals and businesses affected by terrorist attacks in the State of Israel. The IRS would continue to monitor events and may provide additional relief....

IRS Releases Process for Withdrawing ERC Claims, FS-2023-24; IR-2023-193
The Internal Revenue Service could release as soon as today the process that businesses can use to withdraw employee retention credit claims....

IRS Direct File Pilot Plans Detailed, FS-2023-23; IR-2023-192
The Internal Revenue Service detailed how it is proceeding with a pilot program that will allow taxpayers to file their taxes directly on the IRS website as an option along with doing an elec...

Substantial Clean Vehicle Credit Guidance Issued, NPRM REG-113064-23; Rev. Proc. 2023-33; Fact Sheet FS-2023-22; IR-2023-186
The IRS released substantial new guidance regarding the new clean vehicle credit and the used clean vehicle credit. The guidance updates procedures for manufacturer, dealer and seller registrations an...

2023-2024 Special Per Diem Rates Released, Notice 2023-68
The IRS has released the 2023-2024 special per diem rates. Taxpayers use the per diem rates to substantiate certain expenses incurred while traveling away from home. These special per diem rates�...

IRS Updates Requirements for Amended Version of New Energy Efficient Homes Credit, IR-2023-180; Notice 2023-65
The IRS provided guidance on the new energy efficient home credit, as amended by the Inflation Reduction Act of 2022 (P.L. 117-169). The guidance largely reiterates the statutory requirements f...

IRS Identifies Drought-Stricken Areas for Tax Relief After Involuntary Sale of Livestock, Notice 2023-67, IR-2023-179
The IRS identified drought-stricken areas where tax relief is available to taxpayers that sold or exchanged livestock because of drought. The relief extends the deadlines for taxpayers to ...

Prepping for Increased IRS Audit Activity
With the Internal Revenue Service announcing more details on how it will be targeting America’s wealthiest taxpayers, Kostelanetz’s Megan Brackney offered up some advice on preparing for increa...

IRS Warns Against Exaggerated Art Donation Deduction Programs Targeting High-income Taxpayers, IR-2023-185
The IRS has cautioned taxpayers to be vigilant about promotions involving exaggerated art donation deductions that may target high-income individuals and has also provided valuable tips to help...

How Do I? Figure the first-time homebuyer tax credit?
The Housing Assistance Tax Act of 2008 (2008 Housing Act) gave a boost to individuals purchasing a home for the first time with a $7,500 first-time homebuyer tax credit. The credit was enhanced from $...

FAQ: When does a gift require a gift tax return?
If you've made, or are planning to make, a big gift before the end of 2009, you may be wondering what your gift tax liability, if any, may be. You may have to file a federal tax return even if you do ...

The ups and downs of falling interest rates in tax planning
Falling interest rates and the current slowdown in the U.S. economy are having a widespread affect on today's economy and individuals' financial resources, from savings accounts to personal loans and ...

FAQ: Are fees paid for trash pickup and homeowners association dues deductible as property taxes?
No. Even though trash pickup and neighborhood oversight provided by a governmental entity such as a town or county can be figured into the amount of deductible property taxes paid by a homeowner, a pa...

Decision making needed to maximize important business incentives in the 2009 Recovery Act
The business incentives in the American Recovery and Reinvestment Act of 2009 (2009 Recovery Act) are much anticipated and valuable. Three significant business incentives in the 2009 Recovery Act are ...

FAQ: Are website development costs for my business deductible?
Like the Internet itself, the correct deductibility of a business's website development costs is still in its formative stages. What is fairly clear, however, is that it is highly unlikely that any si...

How Do I? Compute a negligence penalty for not having the right proof for a deduction?
An accuracy-related penalty applies to a tax underpayment due to "negligence or disregard of the rules and regulations." "Negligence" for this purpose includes any failure to make a reasonable attempt...

How the Mortgage Forgiveness Debt Relief Act is helping homeowners
On December 18, 2007, Congress passed the Mortgage Forgiveness Debt Relief Act of 2007 (Mortgage Debt Relief Act), providing some major assistance to certain homeowners struggling to make their mortga...

FAQ: What kinds of moving expenses are deductible?
Only "qualified moving expenses" under the tax law are generally deductible. Qualified moving expenses are incurred to move the taxpayer, members of the taxpayer's household, and their personal belong...

How do I? Calculate compound interest on an IRS penalty
The amount of interest required to be paid for underpayment of tax is compounded daily. In order to calculate compound interest, you divide the Code Sec. 6621 interest rate by the number of days in th...

FAQ: Must the S corp election be made each year?
The small business corporation (S corp) is one of the most popular business entities today, offering its shareholders the flow-through tax treatment of a partnership and the limited liability of a cor...

How do I? Process employee Earned Income Tax Credits
Employees who qualify for the Earned Income Tax Credit (EITC) can elect to receive the credit in advance payments from their employer along with their regular pay during the year. Advance earned incom...

FAQ: Are holiday turkeys given to employees taxable and deductible?
With the holidays quickly approaching, you as an employer may not only be wondering what type of gift to give your employees this season, but the tax consequences of the particular gift you choose. Th...

How Do I? ... Keep a log for automobile expenses
If you use your car for business purposes, you may have learned that keeping track and properly logging the variety of expenses you incur for tax purposes is not always easy. Practically speaking, how...

FAQ: Are long-term insurance premiums tax deductible?
Long-term care premiums are deductible up to certain amounts as itemized medical expense deductions. The amount is based upon your age. Unfortunately, most taxpayers do not have enough other medical e...

How Do I? Compute the Kiddie Tax for 2009
Under the so-called "kiddie tax," a minor under the age of 19 (or a student under the age of 24) who has certain unearned income exceeding a threshold amount will have the excess taxed at his or her p...

FAQ: Is foreign business travel deductible?
A taxpayer's expenses incurred due to travel outside of the United States for business activities are deductible, but under a stricter set of rules than domestic travel. Foreign travel expenses may be...

How do I? Compute the small corporation AMT exemption?
The alternative minimum tax (AMT) is imposed on corporations in an amount by which the tentative minimum tax exceeds the regular income tax for the taxable year. The purpose of the AMT is to prevent t...

Collapse of mortgage market brings unanticipated tax consequences to homeowners
With the subprime mortgage mess wreaking havoc across the country, many homeowners who over-extended themselves with creative financing arrangements and exotic loan terms are now faced with some grim ...

Pay your taxes on-line: Options for both businesses and individuals
These days, both individuals and businesses buy goods, services, even food on-line. Credit card payments and other bills are paid over the internet, from the comfort of one's home or office and withou...

FAQ: Will renting my vacation home mean big tax write-offs?
If you own a vacation home, you may be considering whether renting the property for some of the time could come with big tax breaks. More and more vacation homeowners are renting their property. But w...

How Do I? Arrange employee discounts with the best tax results
Fringe benefits have not only become an important component of employee compensation, they also have a large financial impact on an employer's business. Fringe benefits are non-compensation benefits p...

"Reasonable" compensation: Hot button for IRS auditors
In order to be tax deductible, compensation must be a reasonable payment for services. Smaller companies, whose employees frequently hold significant ownership interests, are particularly vulnerable t...

FAQ: When are back social security payments included in income? How about repayments?
A lump-sum of social security benefits is usually included in gross income for the year in which it is received. However, a recipient may choose to include in gross income the total amount of benefits...

How do I? Handle non-cash incentive award reporting and withholding?
Non-cash incentive awards, such as merchandise from a local retailer given to its employees or vacation trips offered to the employee team member who contributes the most to a special project, are a f...