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Prop. regs. clarify tax treatment of certain health insurance payments
Where premiums for an employee’s coverage are paid on a pretax basis, amounts the employee receives without regard to the actual amount of medical expenses incurred are not excluded from gross income, proposed regulations would provide.
Update on states moving ahead with PTETs
More states so far in 2023 have joined dozens previously in adopting and implementing new passthrough entity taxes, which allow state and local taxes paid by partnerships and S corporations to be treated as a nonseparately stated item, a potential workaround for individual partners or shareholders to the $10,000 deduction limitation.
Study: Deterrence a major factor in bringing in more money from IRS audits
A paper by researchers at Harvard University, the University of Sydney, and Treasury found that each additional $1 the IRS spends on auditing taxpayers above the 90% income percentile can yield a return of more than $12 in revenue.
Stock repurchase excise tax reporting and payment delayed by IRS
The IRS announced that covered corporations will not have to report or pay the new 1% stock repurchase excise tax until it issues forthcoming regulations.
Research finds algorithms, unscrupulous preparers behind audit bias
A follow-up study to one led by Stanford University of the racial gap in IRS audit rates pointed to two leading causes: unscrupulous tax preparers who submit spurious earned income tax credit claims and racial skewing effects of the IRS’s own computerized audit selection process.
