Before the new year, the IRS reminds businesses of changes that may affect their taxes. Here’s a quick look at two. The CARES Act allowed employers to defer payments of Social Security taxes from the original 2020 due dates. By Jan. 3, 2022, 50% of the deferred amount must be paid, to avoid penalties and … Read More
Once a revolutionary breakthrough in communications technology, email is now an afterthought for many people. But that can cause problems for businesses: Servers get filled up, messages get lost, and employees’ productivity isn’t quite what it could be. Although doing so may seem superfluous or antiquated, providing employees with some retraining or upskilling on proper … Read More
The IRS announced that the publicly available data it provides on electronically filed Forms 990 in a machine-readable format will soon be available solely on the Tax Exempt Organization Search webpage. Beginning Dec. 31, 2021, the IRS will no longer update the Form 990 Series data on Amazon Web Services. This change is to provide … Read More
Among the biggest long-term concerns of many business owners is succession planning — how to smoothly and safely transfer ownership and control of the company to the next generation. From a tax perspective, the optimal time to start this process is long before the owner is ready to give up control. A family limited partnership … Read More
Most optional standard mileage rates used to calculate the deductible costs of operating an automobile for various purposes will rise for 2022. Beginning on Jan. 1, 2022, the standard mileage rate for vehicles (cars, vans, pickups and panel trucks) will be 58.5 cents per mile driven for business (up 2.5 cents per mile from 2021). … Read More
In an article entitled “Closer Look,” an IRS official discusses business charitable deductions. Sunita Lough, Commissioner of the IRS Tax Exempt and Government Entities Division described two tax-reduction opportunities. C corporations that make charitable cash contributions to eligible charities in 2021 may take a deduction up to a limit of 25% of taxable income. “But … Read More
Last-minute changes to contracts can be frustrating. But, if managed properly, they can sometimes provide an opportunity to boost profits. Here are ways construction companies, engineering firms, software developers and other businesses that enter into long-term contracts with customers can better track change orders, account for them properly on their financial statements and use them … Read More
The Government Accountability Office (GAO) has issued a report on the refined coal production tax credit. With the goal of reducing emissions, since 2004, the federal government has offered tax credits that support the production of refined coal. The GAO reports that refined coal producers claimed nearly $1.6 billion in credits in 2019. Congress has … Read More
While digitalization continues to take hold of the business world, the billing and collections functions for many organizations remain largely paper based. Businesses that automate the accounts receivable process may accomplish several operational and financial goals. Here are five key benefits that organizations can unlock when they “go digital.” 1. Manual processing is minimized; efficiency … Read More
In a Notice, the IRS has provided lenders and loan servicers guidance on reporting certain discharged student loans. According to Notice 2022-1, lenders and loan servicers shouldn’t file information returns or furnish payee statements to report the discharge of student loans when the discharge is excluded from gross income. Generally, a discharged loan results in … Read More