The IRS has issued proposed regulations to conform to the Tax Cuts and Jobs Act’s federal income tax withholding changes. The proposed regs are designed to accommodate the redesigned 2020 Form W-4, “Employee’s Withholding Certificate,” and related wage withholding tables. Among other things, the proposed regs provide rules on when employees must furnish a new … Read More
Many of today’s businesses employ workers from across the generational spectrum. Employees may range from Baby Boomers to members of Generation X to Millennials to the newest group, Generation Z. Managing a workforce with a wide age range requires flexibility and skill. If you’re successful, you’ll likely see higher employee morale, stronger productivity and a more … Read More
The President’s budget would extend estate tax and individual tax cuts under the Tax Cuts and Jobs Act (TCJA). President Trump has issued a budget proposal for fiscal year 2021. Among its provisions are an extension, through 2035, of the estate and gift tax cuts and the individual income tax cuts in the TCJA. These … Read More
A key fiduciary duty of your not-for-profit’s board of directors is to oversee and monitor the organization’s financial health. Some financial warning signs — such as the loss of a major funder — may jump out immediately. But other red flags can be more subtle. Here are some of them. Budget issues Certain budget-related issues … Read More
How is the federal government budget doing? The Congressional Budget Office estimated a budget deficit of $388 billion for the first 4 months of fiscal 2020. That’s $78 billion more than the deficit recorded during the same period last year. Some highlights: Total receipts grew 6%. Individual income and payroll tax rose 5%. Withholding grew … Read More
Perhaps you’re an investor in mutual funds or you’re interested in putting some money into them. You’re not alone. The Investment Company Institute estimates that 56.2 million households owned mutual funds in mid-2017. But despite their popularity, the tax rules involved in selling mutual fund shares can be complex. Tax basics If you sell appreciated … Read More
IRS: High-deductible health plans (HDHPs) can cover Coronavirus (COVID-19) costs. The tax agency announced that HDHPs can pay for COVID-19-related testing and treatment, without jeopardizing their status. And an individual with an HDHP that covers these costs may continue to contribute to a Health Savings Account. In Notice 2020-15, the IRS said that health plans … Read More
Many people who launch small businesses start out as sole proprietors. Here are nine tax rules and considerations involved in operating as that entity. 1. You may qualify for the pass-through deduction. To the extent your business generates qualified business income, you are eligible to claim the 20% pass-through deduction, subject to limitations. The deduction … Read More
Recent steep losses in the stock market have the White House and lawmakers discussing proposals aimed at easing economic concerns during the coronavirus (COVID-19) outbreak. President Trump floated the idea of a payroll tax cut and other relief to hourly wage earners. Currently, both employees and employers pay Social Security tax at a rate of … Read More
IRS field revenue officers (ROs) have begun knocking on the doors of taxpayers with ongoing tax compliance issues. According to the IRS, these home visits (starting in AK, TX and WI) are made if numerous mail contacts have proven unsuccessful. ROs are trained IRS civil enforcement employees who work to resolve issues, such as missing … Read More