If you’re age 70½ or older and have an IRA, qualified charitable distributions (QCDs) are an option for making tax-free gifts to charity of up to $100,000. Moreover, if you’re at least age 72, QCDs count toward your required minimum distribution for the year. Note that if you wish to make a QCD for 2022, … Read More
Businesses shut down for many reasons. Some of the reasons that businesses shutter their doors: An owner retirement, A lease expiration, Staffing shortages, Partner conflicts, and Increased supply costs. If you’ve decided to close your business, we’re here to assist you in any way we can, including taking care of the various tax obligations that … Read More
The business entity you choose can affect your taxes, your personal liability and other issues. A limited liability company (LLC) is somewhat of a hybrid entity in that it can be structured to resemble a corporation for owner liability purposes and a partnership for federal tax purposes. This duality may provide you with the best … Read More
Some taxpayers may try to reduce the risk of accuracy-related tax penalties by filing a qualified amended return. These returns are filed after a regular return’s due date, but generally before the IRS contacts the taxpayer about conducting an audit. (Other rules apply for pass-through entities.) New regulations designed to ease the process for large … Read More
The IRS is set to hire a new wave of customer service reps, to end staff shortages and ensure taxpayers can access the help they need. That’s one of the key purposes of the $80 billion allotted to the agency as part of the Inflation Reduction Act. “If the IRS does not make significant changes, … Read More
In today’s tough job market and economy, the Work Opportunity Tax Credit (WOTC) may help employers. Many business owners are hiring and should be aware that the WOTC is available to employers that hire workers from targeted groups who face significant barriers to employment. The credit is worth as much as $2,400 for each eligible … Read More
A U.S. District Court in Texas ruled on Nov. 10 that President Biden’s student loan debt relief plan is unlawful. On Aug. 24, 2022, Biden announced a student loan forgiveness plan that further extends the suspension of collection actions and wage garnishment. It also allows for a certain amount of debt forgiveness for eligible individuals … Read More
Two tax benefits are available to offset the expenses of adopting a child. In 2022, adoptive parents may be able to claim a credit against their federal tax for up to $14,890 of “qualified adoption expenses” for each child. This will increase to $15,950 in 2023. That’s a dollar-for-dollar reduction of tax. Also, adoptive parents … Read More
The IRS Independent Office of Appeals has come under some criticism, most recently by members of the American Institute of Certified Public Accountants. But Appeals claims it’s “taking important steps to expand communications with external stakeholders and to improve taxpayer access.” It has just released its fiscal year 2023 Focus Guide, which provides details on … Read More
The effects of inflation are all around. You’re probably paying more for gas, food, health care and other expenses than you were last year. Are you wondering how high inflation will affect your federal income tax bill for 2023? The IRS recently announced next year’s inflation-adjusted tax amounts for several provisions. Some highlights Standard deduction. … Read More