With the tax filing season almost here, taxpayers may want to check out a new IRS publication from the IRS. “Publication 5348, Get Ready to File” can help individuals prepare for the tax-filing season. It offers information and resources on electronic filing options, withholding, estimated tax payments, credits and deductions, data protection and tax refunds. … Read More
Recent legislation generally requires tax-exempt organizations to e-file forms. The Taxpayer First Act, enacted in July, requires nonprofits to electronically file information returns and related forms in tax years starting after July 1, 2019. Those who previously filed paper forms will receive a letter from the IRS informing them of the change. Filing deadlines vary … Read More
The IRS has proposed clarifications on how to treat certain contributions made to a charity in return for state and local tax credits. A provision of the Tax Cuts and Jobs Act limits an individual’s deduction for state and local taxes paid in a calendar year to $10,000. The new proposed regulations provide guidance on … Read More
If, like many people, your traditional IRA holds a mixture of deductible (after-tax) and nondeductible (pretax) contributions, it’s important to track your contributions carefully to avoid double taxation of distributions. Why? Because the IRS treats distributions as a blend of pretax and after-tax dollars. If you treat distributions as fully taxable, you’ll end up overpaying. … Read More
Most employees anticipate receiving their W-2 Wage and Tax Statements near the end of January, so they can get their tax returns prepared and filed. Forms for 2019 should be mailed to you by Jan. 31. If you don’t receive your W-2s by the end of February, the IRS says to start by checking with … Read More
If your company comes up over budget year after year, you may want to consider cost management. This is a formalized, systematic review of operations and resources with the stated goal of reducing costs at every level and controlling them going forward. As part of this effort, you’ll answer questions such as: Are we operating … Read More
Does your company have a single-employer defined benefit pension plan? The IRS has provided updated mortality improvement rates and static mortality tables to be used with these plans. The tables’ purpose is to help calculate the funding target and other items for valuation dates in calendar-year 2021. A modified unisex version of the tables has … Read More
Some benefit plans are required to include an opinion from an independent qualified public accountant (IQPA) when filing Form 5500 each year. The IQPA examines the plan’s financial statements and schedules to ensure they’re presented fairly and in conformity with Generally Accepted Accounting Principles (GAAP). The financial statements and IQPA opinion are often referred to … Read More
An employer can provide employees transit passes in the form of debit cards that will be considered qualified transportation fringe benefits. In one case, an employee tried to use the debit card to purchase fare on public transportation, but it didn’t work. The employee paid in cash instead. The IRS Chief Counsel addressed the question, … Read More
While you were celebrating the holidays, you may not have noticed that Congress passed a law with a grab bag of provisions that provide tax relief to businesses and employers. The “Further Consolidated Appropriations Act, 2020” was signed into law on December 20, 2019. It makes many changes to the tax code, including an extension … Read More