Are IRS partnership audits really going away? Treasury performance data show partnership examination starts fell about 76% from fiscal year 2023 to fiscal year 2025, but IRS partnership audits are still live for the biggest partnerships, and the Bipartisan Budget Act regime still bills the partnership itself when one lands. A client calls after reading…
Which year-end tax planning moves actually shift a high earner’s 2026 tax bill? The ones the Internal Revenue Code closes at midnight on December 31 — retirement contributions coded to a payroll cycle, wash-sale-safe loss harvests, exercised stock options, direct-to-charity IRA distributions, and completed annual-exclusion gifts. Year-end tax planning for high earners is less about…
Navigating the Top California Tax Changes for 2025: An Essential Guide The 2025 tax year is shaping up to be one of the most pivotal and complex periods for California taxpayers in recent memory. A perfect storm of expiring federal provisions, significant state-level legislative proposals, and crucial inflation adjustments creates a landscape of uncertainty…
The IRS Gets Smarter: Rise of the AI Auditor & How to Prepare for 2025 IRS AI Audit Risks The U.S. tax landscape in 2025 is shifting more dynamically than ever before. A particularly noteworthy change is the evolution of the Internal Revenue Service (IRS) audit process. Moving beyond simply increasing its workforce, the…
The IRS audit risk is a growing concern for many taxpayers, especially with the significant funding boost from the Inflation Reduction Act. The IRS is now enhancing its enforcement capabilities, and a key part of this strategy involves leveraging artificial intelligence to identify non-compliance. This means the audit risk for certain groups is expected to…
The Internal Revenue Service (IRS) is heading into 2025 on a contradictory path. On one hand, it’s empowered by significant funding from the Inflation Reduction Act (IRA) to enhance services and enforcement. On the other, it faces potential budget cuts, workforce reductions, and shifting priorities due to political pressures. For U.S. taxpayers and businesses, this…
