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Taxes and their applicable laws can be confusing for even the most savvy businesspeople. For any number of reasons, businesses and individuals fall out of compliance with tax reporting requirements and become exposed to penalties for outstanding obligations.

To encourage taxpayers who are not in compliance with state tax laws to remedy their situations, the Wisconsin Department of Revenue provides the Wisconsin Voluntary Disclosure Program (“Program”).

The Program is designed to help businesses correct their state tax responsibilities and…
Continue Reading Does My Company Qualify for Wisconsin’s Voluntary Disclosure Program?

This article first appeared in On Balance, the membership magazine of the Wisconsin Institute of CPAs, and is used with their permission.

In early January, the incoming U.S. presidential administration loudly signaled that businesses should expect changes in trade policies in 2025. Although no specific policies had yet been promulgated, then President-elect Trump stated in social media outlets that broad sweeping import tariffs may be imposed on goods from Mexico, Canada and China. As of May 15, many new…
Continue Reading Taking Stock of Trade Issues

We previously reported on the reciprocal tariffs on ALL countries issued by President Trump in early April. Over the weekend, the U.S. and China agreed to temporarily reduce tariffs amid a looming recession triggered by an effective embargo.

The reciprocal tariffs, previously set at 125 percent, will be lowered to 10 percent for a 90-day period to allow room for negotiations. Both sides will take these actions by May 14, 2025. It is important to note that this

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Continue Reading U.S. and China Agree to Reduce Reciprocal Tariffs for 90 Days

Young woman holding money.
Alexander Grey, Unsplash
When my father passed away a few years ago, my family and I gathered at his home to start the difficult process of sorting through his belongings. Between the photo albums, old love letters to my mom, and vintage Cubs memorabilia, we found something no one expected — a shoebox filled with cash.
At first, we laughed. Then we looked at each other and asked, Wait… what do we do with this?
If you’ve ever been in this situation

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Continue Reading I Found Cash In My Dad’s Closet- Here’s What You Should Know

The US Supreme Court granted the petition for review in Catholic Charities, and oral argument is scheduled for March 31st at 10am eastern time. You can listen to the oral argument at this link.

The issue being addressed by the justices in this case is:
Does a state violate the First Amendment’s Religion Clauses by denying a religious organization an otherwise-available tax exemption because the organization does not meet the state’s criteria for religious behavior?
Framed in…
Continue Reading Catholic Charities of Wisconsin at the US Supreme Court

Tipping has been partCash of the modern-day American restaurant experience for decades. Like most forms of income, these tips are taxable and subject to income tax. But what if this income was free from income tax liability?

This idea was proposed under the recently introduced bicameral legislation dubbed the No Tax on Tips Act (“Act”). This newly proposed regime has also seen traction and support at the state level. Wisconsin legislatures have proposed a similar bill to provide relief…
Continue Reading No Tax on Tips Act: How Taxpayers Can Prepare

As part of the Paperwork Burden Reduction Act, signed into law on December 23, 2024, Internal Revenue Code (IRC) sections 6055(c) and 6056(c) were amended to allow the use of the alternative method for distributing Forms 1095-B and 1095-C.

Stated simply, employers were given the green light to simply post a general notice of availability instead of being required to individually distribute Form 1095-C.

Existing guidance was already in place describing requirements for an alternative method of distributing Form

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Continue Reading IRS Issues Guidance on Alternative Distribution Method for Form 1095-C

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The IRS has issued new guidance on its phased rollout of 1099-K reporting requirements, impacting millions of users of platforms like PayPal, Venmo, Etsy, and eBay. These updates build on the IRS’s December 2023 announcement, where it delayed the implementation of a $600 reporting threshold due to concerns over taxpayer confusion and administrative burdens.

As we discussed in our December 2023 post, the IRS had originally planned to drop the 1099-K reporting threshold from $20,000 (and 200 transactions)…
Continue Reading Important Update for PayPal and Venmo Users: IRS Adjusts 1099-K Reporting Thresholds

The Internal Revenue Service issued the 2025 optional standard mileage rates today for computing the deductible cost of operating an automobile for business, charitable, medical, or moving purposes. The most notable change is the per mile increase for business use mileage.

Effective January 1, 2025, the optional standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 70 cents per mile driven for business use.  This is an increase from the rate

    • …
    Continue Reading IRS Releases New Mileage Rates for 2025

    The anticipated Emergency Rule further outlining the Department of Revenue’s policies, procedures, and interpretations of Wis. Stat. Sec. 125 was just released! If you are a brewery, winery, distillery, or wholesale permittee in the State of Wisconsin this emergency rule applies to you and will impact your business. We will have more information about the Emergency Rule and its impacts in the coming days. However, for now, you may read the rule in its entirety at the link below:…
    Continue Reading Emergency Rule 2419 Released by Wisconsin Department of Revenue

    Beginning January 1, 2025, Wisconsin will implement a new excise tax on electric vehicle (EV) charging stations under 2023 Wisconsin Act 121. If your business owns, operates, manages, or leases EV charging stations, here’s what you should know:

    Who Must Register: Any business delivering electricity through EV charging stations must register with the Wisconsin Department of Revenue using the Online Business Tax Registration system. This requirement applies regardless of whether:

      • The charging station is open to the public or

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    Continue Reading Reminder: Wisconsin Electric Vehicle Charging Station Excise Tax and Registration Requirements Begin Jan. 1, 2025

    As local governments face growing pressure to combat climate change and promote sustainable energy, funding innovative projects remains a challenge.
    The Inflation Reduction Act of 2022 (IRA) includes an elective pay option (direct pay) that presents an opportunity for municipalities and other governmental entities to directly benefit from new and existing clean energy tax credits. Although the continued federal commitment to the IRA is uncertain, a full repeal of the IRA may prove difficult. While certain parts of the

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    Continue Reading Direct Pay: How Local Goverments Can Leverage Tax Credits

    The recent Tax Court case Estate of Anne Milner Fields v. Commissioner underscores the risks involved when transferring assets to a family limited partnership or family limited liability company close to death. Approximately a month before Anne Milner Fields died, her great-nephew and agent under her durable power of attorney transferred $17 million of assets to an FLP with himself as the general partner. After her death, Anne’s estate discounted the FLP value on her estate tax return for

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    Continue Reading IRS Invalidates Discounts Used in an FLP Formed Shortly Before Death

    The recent election of Donald Trump as president signals potential changes to the U.S. tax code in 2025. Some anticipated adjustments align with Trump’s proposals to extend or expand certain cuts from the Tax Cuts and Jobs Act of 2017, enacted during Trump’s first term, as well as new measures aimed at encouraging economic growth and adjusting tax policies for individuals and businesses.

    Individual Income Taxes: Lower Rates, Expanded Cuts Individual taxpayers may see a continuation of the lower…
    Continue Reading What to Expect for Tax Policy in 2025 After Trump’s Election Victory

    The IRS has released inflation adjustments for the 2025 tax year, bringing changes to tax brackets, deductions, and credits that may affect taxpayers across income levels. Here’s a quick overview of the updates:

    Income Tax Brackets

    Tax brackets will shift higher to accommodate inflation, helping prevent “bracket creep.” For example, the 37% top rate now applies to incomes over $626,350 for individuals and $751,600 for married couples filing jointly. Other rates are as follows:

    • 10% for incomes up

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    Continue Reading 2025 IRS Tax Adjustments: What You Need to Know

    On November 1, 2024 the Internal Revenue Service announced the cost-of-living adjustments for the various qualified retirement plan limits.  Almost all of the limits shown below have increased from last year.
     

    Qualified Plan Limit
    Cost-of-Living Adjustments

    401(k) and 403(b) elective deferral limit

    2024 – $23,000

    2025 – $23,500

    $200,000 compensation limit

    2024 – $345,000

    2025 – $350,000

    $160,000 defined benefit limit

    2024 – $275,000

    2025 – $280,000

    $40,000 defined contribution limit

    2024 – $69,000

    2025 – $70,000

    $80,000 definition…
    Continue Reading 2025 Qualified Plan Cost of Living Increases, 2025 Social Security Taxable Wage Base