You can help protect yourself from tax identity theft by knowing how the IRS communicates with taxpayers. The IRS doesn’t normally initiate contact by email. Don’t reply to an email from someone who claims to be from the IRS because it could be fake. Emails from IRS employees end in IRS.gov. The first contact from … Read More
Many companies have resumed some level of business-related travel and entertainment (T&E) activities — or they plan to do so this fall. Unfortunately, these expense categories may be susceptible to incomplete recordkeeping and even fraud. So, it’s important for companies to implement formal T&E policies to ensure reporting is detailed and legitimate. Substantiating expenses Traditionally, … Read More
The 2022 Compliance Assurance Program (CAP) application period opens on Sept. 1, 2021. CAP is a voluntary real-time issue resolution program run by the IRS for large corporate taxpayers. The goal of CAP is to resolve tax issues before a taxpayer files a return. To apply for CAP, new applicants must have assets of $10 … Read More
Updated accounting rules for long-term leases took effect in 2019 for public companies. Now, after several deferrals by the Financial Accounting Standards Board (FASB), private companies and private not-for-profit entities must follow suit, starting in fiscal year 2022. The updated guidance requires these organizations to report — for the first time — the full magnitude … Read More
The IRS has updated its procedures for contacting entities that are seeking exempt status. The Tax Exempt and Government Entities Division issued a memo with new procedures that apply. For example, if an organization doesn’t submit a Form 2848, “Power of Attorney and Declaration of Representative,” with its application for recognition of tax-exempt status or … Read More
Did you know that September is National Preparedness Month? The IRS is doing its part by urging taxpayers (both individuals and businesses) to develop or update their emergency preparedness plans. To that end, it has compiled a list of action items for taxpayers to consider before a disaster, such as a hurricane or wildfire, strikes. … Read More
Employer-provided life insurance is a coveted fringe benefit. However, if group term life insurance is part of your benefit package, and the coverage is higher than $50,000, there may be undesirable income tax implications. The first $50,000 of group term life insurance coverage that your employer provides is excluded from taxable income and doesn’t add … Read More
Employer-provided life insurance is a coveted fringe benefit. However, if group term life insurance is part of your benefit package, and the coverage is higher than $50,000, there may be undesirable income tax implications. Tax on income you don’t receive The first $50,000 of group term life insurance coverage that your employer provides is excluded … Read More
Ranking Republicans on congressional tax writing committees have requested an investigation into “the scope and severity of fraudulent activity in COVID unemployment insurance programs.” Specifically, they would like the Government Accountability Office to “conduct a complementary, targeted review,” according to a letter sent by the lawmakers to the U.S. Comptroller General. They want several federal … Read More
If your child is fortunate enough to be awarded a scholarship, you may wonder about the tax implications. Fortunately, scholarships (and fellowships) are generally tax free for students at elementary, middle and high schools, as well as those attending college, graduate school or accredited vocational schools. It doesn’t matter if the scholarship makes a direct … Read More