The Congressional Budget Office (CBO) has published a report titled “Projected Changes in the Distribution of Household Income, 2016 to 2021.” The report presents the CBO’s projections of the distribution of household income, means-tested transfers and federal taxes in 2021 and compares them with the actual distributions in 2016. (2016 is the most recent year … Read More
Before you jump headfirst into the year-end financial reporting process, review the role independent audit committees play in providing investors and markets with high-quality, reliable financial information. Recent SEC statement Under Securities and Exchange Commission (SEC) regulations, all public companies must have an independent audit committee or have the full board of directors act as … Read More
If you’re age 70 ½ or older, be aware that a new law has changed the rules for IRAs. Before 2020, traditional IRA contributions weren’t allowed once you attained age 70 ½. Starting in 2020, new rules allow individuals of any age to make contributions to traditional IRAs, as long as you have compensation (generally, … Read More
Virtually everyone needs an estate plan, but it isn’t a one-size-fits-all proposition. Even though each person’s situation is unique, general guidelines can be drawn depending on your current stage of life. The early years If you’ve recently embarked on a career, gotten married or both, now is the time to build the foundation for your … Read More
A reminder for nonprofits: The Taxpayer First Act requires most tax-exempt organizations to electronically file information returns and related forms. The new law affects these organizations in tax years starting after July 1, 2019. According to the IRS, the following forms are included in the mandate: Form 990, Return of Organization Exempt from Income Tax; … Read More
You’ve no doubt read articles or heard stories about how artificial intelligence (AI) is bringing sweeping change to a wide variety of industries. But it’s one thing to learn about how this remarkable technology is changing someone else’s company and quite another to apply it to your own. Here’s a primer on what AI might … Read More
An offer in compromise (OIC) is an agreement between a taxpayer and the IRS to settle a tax debt for less than the amount owed. The IRS can accept an OIC if there’s: 1) doubt as to liability 2) doubt as to collectability, or 3) promotion of effective tax administration. One taxpayer who owed taxes … Read More
Owners of passthrough businesses who meet certain requirements may be eligible for a generous deduction, if they’re current on their tax filing. The deduction equals up to 20% of the owner’s share of qualified business income (QBI). In one case, the deduction was denied because the owner hadn’t filed a tax return. The IRS independently … Read More
The start of the new year ushers in tax season. If you used your home to conduct business, you may qualify to take a home office deduction on your tax return, even if you’re a renter. Here are the basic rules: The home must be your principal place of business, or a place to meet … Read More
Does your not-for-profit organization have a conflict-of-interest policy in place? Do your board members, trustees and key employees understand how the policy affects them? If you answer “no” to either (or both) of these questions, you have some work to do. A duty Nonprofit board officers, directors, trustees and key employees all must avoid conflicts … Read More