In 2018, the Supreme Court ruled that the Professional and Amateur Sports Protection Act was unconstitutional, which caused a ripple effect resulting in each state being able to decide whether to allow sports wagering, significantly impacting businesses and entities that rely on the act of wagering. Since the ruling, over $125 billion has been legally wagered on sports, as thirty U.S. states plus Washington, D.C., now offer some form of legalized sports betting, according to data from the American Gaming Association.

Not-for-profits that rely on a single income source, or only a few, are vulnerable to economic shocks. The COVID-19 pandemic has made this particularly clear. Most organizations have had to scramble to make up for lost revenue when at least some of their usual support dried up in 2020 — and has been slow to return. If you’ve had a hard time staying afloat over the past couple of years, you may need to diversify your nonprofit’s income stream.

When you take withdrawals from your traditional IRA, you probably know they’re taxable. But there may be a penalty tax on early withdrawals depending on how old you are when you take them and what you do with the money.

While the recently announced student loan debt relief has captured numerous headlines, it’s estimated that another federal relief program announced on the same day will provide more than $1.2 billion in tax refunds or credits. Specifically, IRS Notice 2022-36 extends penalty relief to both individuals and businesses who missed the filing deadlines for certain 2019 and/or 2020 tax and information returns. The relief covers many of the most commonly filed forms.

The Inflation Reduction Act of 2022 (IRA) includes increased Internal Revenue Service (IRS) funding in the amount of approximately $80 billion over ten years. According to a Congressional Research Service report, the law includes $45.6 billion for tax enforcement (an increase of 69%), $25.3 billion for operations support (an increase of 53%), $3.2 billion for taxpayer services (an increase of 9%) and $4.8 billion for business systems modernization (an increase of 153%). For most taxpayers, the enforcement and operations funding is likely to most affect how they interact with the IRS in the future. We detail those provisions below:

President Joe Biden announced on Wednesday, August 24th, that student loan debt will be forgiven for many borrowers, and repayments will be paused until the end of 2022. Forgiveness includes $20,000 in student loan debt for borrowers who received Pell Grants and $10,000 for those who didn't.

The IRS recently published Revenue Procedure 2022-32 to provide certain taxpayers a more simplified method to make a “portability” election under Section 2010(c)(5)(A) of the Internal Revenue Code. Taxpayers who qualify for this new simplified method will be able to elect portability of a Deceased Spouse’s Unused Exemption (“DSUE”) up to five years after the decedent’s date of death. This new procedure is an amazing federal estate tax savings opportunity for certain surviving spouses.

Earlier this month, we wrote about the tax provisions included in the draft version of the Inflation Reduction Act as it was going through the negotiations process and making its way through Congress. On August 16th, President Biden signed into law the Inflation Reduction Act of 2022.

Real-time data is transforming our lives. The days of being caught in a rainstorm without an umbrella or in a bulky sweater on an unseasonably warm day are long gone. Similarly, accounting systems that provide an up-to-the-minute look at a company’s condition mean businesses are better prepared to avert a potential cash flow drought or capitalize on a pending windfall.