With March Madness in full swing, we are constantly reminded that the players are now both student athletes and paid athletes deriving potentially significant income from Name, Image, and Likeness (NIL). This NIL income has significant tax consequences, and many states are using their tax law to maximize NIL’s effectiveness for their public universities. According to On3 NIL Valuations, Arch Manning — the presumptive starting quarterback for the University of Texas next season, has an NIL Valuation of $6.5 million per season. During his recruitment, Manning chose to play at Texas over the University of Alabama and the University of…

U.S. businesses no longer have to comply with the beneficial ownership information (BOI) reporting filing requirements of the Corporate Transparency Act (CTA). That’s the result of an interim final rule issued this month that removes the requirement for U.S. companies and U.S. persons to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). If finalized, the rule would exempt more than 99% of entities from reporting. (I know—”interim” and “final” don’t feel like they should be next to each other when the rule is not yet final. An interim final rule is one that’s issued without first issuing…

Tax season is here, and the deadline to file your 2024 federal income tax return (Form 1040) is April 15, 2025. How Many People File Income Taxes? In 2023, 163 million federal tax returns were filed. Just over half were completed by tax professionals. 135 million of those returns were filed by the deadline April 15, 2024. The rest—28 million—were filed after the deadline. 17% of taxpayers filed after the regular deadline. So far this year, the IRS has received 1.7% fewer tax returns compared to last year. What Is an Income Tax Extension? Filing Form 4868 gives you six…

The digital economy has become a driving force in global trade, reshaping how services are created, delivered, and consumed across borders. In 2022, digitally delivered services reached a value of $3.82 trillion worldwide, making up 54% of all services traded and growing at a steady annual rate of 8.1% since 2005. For many governments, the rapid rise of digital services represents not only a vehicle for innovation and economic diversification, but also a crucial source of tax revenue. In response, a growing number of countries are introducing tax measures targeting digital transactions, particularly those provided by non-resident entities. These efforts…

Tax Day is less than a month away. Are you ready? If the IRS tax filing statistics are any indication, taxpayers still aren’t rushing to file. Numbers for tax filing and processing of tax returns dipped again (☆), a trend that hasn’t changed since the season opened on January 27, 2025. Some taxpayers may be waiting to file–there’s still plenty of time. Others may be looking to file an extension. (☆) It’s free and easy and can help ensure a complete, correct return. Taxpayers sometimes push back, insisting that filing for an extension will cause a return to be flagged…

Most Americans don’t look forward to Tax Day. A recent Wallet Hub survey found that nearly a third of taxpayers would rather serve on jury duty than do their taxes. Nearly one in eight taxpayers would rather talk to their kids about sex than do taxes, while one in 20 would rather drink expired milk. You get the point: tax season can be stressful, and many taxpayers would prefer to skip right over it. However, with the April 15 deadline looming, taxpayers and tax professionals must put aside time to get those returns done and out the door to the…

As consumer confidence falters, government layoffs dominate the news and recession warning signs start blinking, it’s smart to think about what you might do if you need additional cash. Nearly half of adults don’t have three months of emergency savings, according to the Federal Reserve’s latest survey on the Economic Well-Being of U.S. Households. And there are indications—such as a rising credit card delinquency rate—that more folks are having problems paying their bills today than when the Fed did that survey more than a year ago. One source Americans consider tapping in an emergency or when they’re otherwise short of…

Life could soon get more difficult for Social Security beneficiaries who are overpaid—even if the mistake isn’t their fault. The Social Security Administration (SSA) announced yesterday that it would resume attempting to recover overpayments through the Treasury Offset Program (TOP)—attempts that had been suspended since March 2020 due to COVID. That program allows the Treasury to withhold tax refunds, among other payments. Those subject to offsets prior to March 2020 could see them resume quickly. Moreover, beginning next week, the Social Security Administration (SSA) will officially notify Social Security beneficiaries that in the future it will withhold 100% of benefits…

As the April 15 tax filing deadline approaches, U.S. persons with foreign financial accounts must be aware of their obligation to file the Report of Foreign Bank and Financial Accounts, commonly called the “FBAR”. The filing deadline is April 15, the same due date as one’s U.S. income tax return, but there is an automatic extension to October 15 if the initial FBAR deadline is missed. No separate extension request is required. For tax year 2024, the FBAR must be filed by April 15, 2025, with the automatic extension pushing the final due date to October 15, 2025. Importance of…

Investment markets have been falling. The most profitable investments of the last few years are in bear markets (down 20% or more) while many others are in corrections (down 10% or more). Investors who held the assets during the sharp climbs of the law few years are looking to take some profits before they disappear. Many put off selling assets held in taxable accounts, because they didn’t want capital gains taxes to diminish their profits. Fortunately, there are strategies that can reduce capital gains taxes First, a little refresher. After selling an asset, the gain is the amount realized on…