How has service at the IRS been affected by COVID-19? An audit by the Treasury Inspector General for Tax Administration (TIGTA) found that the IRS faces continued hiring challenges and a rising backlog. At the end of 2020, more than 8.3 million individual tax returns and transactions remained unprocessed, which for paper-filed returns is a … Read More
If you and your spouse have similar irrevocable trusts that benefit each other, it’s important to know that the trusts might be subject to the “reciprocal trust” doctrine. In a nutshell, the doctrine prohibits tax avoidance through trusts that are interrelated and place both spouses in the same economic position as if they’d each created … Read More
The IRS has published the calendar year 2021 inflation-adjustment factors and reference prices used to determine the Section 45 energy production credit. The credit consists of the renewable electricity production credit, the refined coal production credit and the Indian coal production credit. The inflation-adjustment factor for qualified energy resources and refined coal is 1.6878 and … Read More
With the recent disruption of the fuel supply chain, the IRS is responding with tax relief for some businesses. Generally, a penalty applies to the use of non-taxed dyed diesel fuel for non-exempt purposes. Retroactive to May 7 and through May 21, 2021, the IRS will temporarily waive the penalty when fuel is for use … Read More
The days of the Rolodex are long gone. To connect with customers and prospects, many businesses now rely on customer relationship management (CRM) software. These solutions give users easy access to comprehensive information — including detailed notes on existing connections with targeted individuals and companies — that can enhance marketing efforts and boost sales. CRM … Read More
The IRS has updated the definition of “qualified empowerment zone wages” contained in the Instructions for Form 8844, “Empowerment Zone Employment Credit.” Specifically, the update clarifies what wages aren’t included in the definition of qualified empowerment zone wages. The empowerment zone employment credit is equal to 20% of the first $15,000 of qualified wages paid … Read More
For businesses, so much has changed over the past year or so. The COVID-19 pandemic hit suddenly and companies were forced to react quickly — sending many employees home to work remotely and making myriad other tweaks and revisions to their processes. Understandably, you may not have fully documented all the changes you’ve made. But … Read More
The American Rescue Plan Act increased the Child Tax Credit (CTC) for eligible families for 2021. It also established a program that will send out advance credit payments to eligible families beginning July 15. How many Americans will benefit from these payments and do they have to do anything to receive them? According to the … Read More
Strategic investments — such as expanding a plant, purchasing a major piece of equipment or introducing a new product line — can add long-term value. But management shouldn’t base these decisions on gut instinct. A comprehensive, formal analysis can help minimize the guesswork and maximize your return on investment. Forecasting cash flows Financial forecasts typically … Read More
The IRS has added the 2021 Bentley Motors Bentayga Hybrid SUV to its list of qualified plug-in electric drive motor vehicles. The tax code provides a credit to purchasers of qualified plug-in electric drive passenger vehicles and light trucks. For qualifying vehicles acquired after Dec. 31, 2009, the credit is $2,500, plus an additional amount … Read More