Chicago Accounting Articles

Brace For The Coming Income Tax War

President Biden’s top economic advisor Lael Barnaird laid out plans last Friday about the coming battle with the GOP over the Tax Cuts and Jobs Act (TCJA) laws that are sunsetting at the end of 2025. I’ve never imagined a starker difference between two...

Capital Gains Tax Soars On Primary Residence Sales

I’m sure that most of you know the rules on not being forced to pay Cap Gains Tax for the sale of your primary home. Married couples are shielded from the first $500K in gains and singles don’t pay the tax below a gain of $250K. But given the meteoric rise...

College Savings Plans Become More Flexible

Section 529 Plans, one of the ways that parents save for their children’s college expenses, have always been rather inflexible. Those challenges have been one of the reasons why many parents have shied away from them. What happens if your kid doesn’t go to...

IRS To Radically Increase Certain Audit Types

Last Thursday, IRS Commissioner Werfel, outlined plans to bolster customer service and increase audits on specific target groups. Since the GOP led House gave his budget a major haircut for this year and next, the Service has been waging a public relations campaign...

New Brackets For Upper, Middle, And Lower Income

Now that we’re out of tax season, I’ve had a few conversations with clients about where they land financially in the Income Brackets. But before I get into the numbers, it should be noted that the lines that divide our income classes have always been...

Significant IRS Letter Confusion

I’ve written about the problems inherent in the IRS automated letter system. For several months we’ve been trying to respond to letters that make absolutely no sense. Please understand that part of the $80B funding increase of The Inflation Reduction Act...