U.S. House Democrats have asked Treasury Secretary Janet Yellen and IRS Commissioner Chuck Rettig to review the tax status of the Family Research Council (FRC). The group has met IRS requirements to qualify as a church, but House Democrats say the FRC is an advocacy organization that shouldn’t be tax exempt. They argue that many … Read More
The pandemic has dramatically affected the way people interact and do business. Your company likely undertook various changes to adapt to the initial lockdowns and the ongoing public health guidance over the past two years. An interesting byproduct of the crisis is that it created a somewhat involuntary experiment in remote work. Many businesses that … Read More
The Congressional Budget Office (CBO) has estimated that the proposed Inflation Reduction Act would cut federal spending by $14.5 billion and raise $87 billion in revenue, reducing government deficits by nearly $102 billion over 10 years. The figures are a yearly average based on the bill’s projected impact from 2022 through 2031, the CBO said. … Read More
Auditors commonly use confirmations to verify such items as cash, accounts receivable, accounts payable, employee benefit plans and pending litigation. Under U.S. Generally Accepted Auditing Standards, an external confirmation is “a direct response to the auditor from a third party either in paper form or by electronic other means, such as through the auditor’s direct … Read More
As truckers roll down the road, a tax deadline is rolling up fast on them. Aug. 31 is the due date for the owners of most heavy highway vehicles to file their annual IRS Form 2290 (Heavy Highway Vehicle Use Tax Return). This tax applies to vehicles with a taxable gross weight of at least … Read More
Can the proposed Inflation Reduction Act deliver much-needed economic relief? In spite of some estimates from Congress, another research group is doubtful. The Penn Wharton Budget Model research tool quantifies the economic impact of government policies. It estimates that the bill would cut federal deficits by $248 billion over 10 years but have little impact … Read More
Under U.S. Generally Accepted Accounting Principles (GAAP), financial statements are normally prepared based on the assumption that the company will continue normal business operations into the future. When liquidation is imminent, the liquidation basis of accounting may be used instead. It’s up to the company’s management to decide whether there’s a so-called “going concern” issue and … Read More
Today, many companies share research or technology to develop new products. For example, manufacturers might enter into a joint venture to conduct scientific research to design a new medical device. Or a watchdog group might work with a production company to create and distribute a documentary film. How revenue and other payments between the parties … Read More
The IRS has extended the deadlines for amending a retirement plan or individual retirement arrangement to reflect recent legislation, including the SECURE Act and the CARES Act. The extended amendment deadline is Dec. 31, 2025, for 1) an IRA or 2) a qualified retirement plan or 403(b) plan (including a collectively bargained plan) that isn’t … Read More
Students and staff at educational institutions, beware. An IRS impersonation scam continues to target schools, including people with “.edu” email addresses. This applies to public, private and nonprofit schools. The suspect emails display the IRS logo and may refer to a “tax refund” in the subject line. The sender then tells recipients that, to claim … Read More