IRS Schedules K-2 and K-3 (for Form 1065) are used by passthrough business entities to report partnership shares subject to international taxation. On Oct. 26, the IRS released draft instructions for the 2022 versions of these schedules. In response to feedback from businesses and tax professionals, the draft instructions provide a new “domestic filing exception” … Read More
Now that Labor Day has passed, it’s a good time to think about making moves that may help lower your small business taxes for this year and next. The standard year-end approach of deferring income and accelerating deductions to minimize taxes will likely produce the best results for most businesses, as will bunching deductible expenses … Read More
Are you counting on a big tax refund in 2023 to help with expenses? Other than forced savings, there’s no benefit to overpaying taxes through withholding and then waiting all year to get a refund. The IRS only pays interest if it takes more than 45 days to issue a refund on a filed tax … Read More
Do you own a successful small business with no employees and want to set up a retirement plan? Or do you want to upgrade from a SIMPLE IRA or Simplified Employee Pension (SEP) plan? Consider a solo 401(k) if you have healthy self-employment income and want to contribute substantial amounts to a retirement nest egg. … Read More
Taxpayers that participate in employer-sponsored health Flexible Spending Accounts (FSAs) can contribute more in 2023. The annual contribution amount will rise to $3,050 (up from $2,850 in 2022). FSAs allow owners to pay for qualified medical costs with pre-tax dollars. That’s good news if you’re scrambling to keep up with rising costs. FSA owners use … 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
Are tax-exempt organizations allowed to engage in political activities? All 501(c)(3) organizations are prohibited from direct and indirect participation in any political campaign for or against any candidate for elected public office. This includes contributing to political campaigns or making public statements favoring or opposing a candidate. Violations may result in lost tax-exempt status. Certain … Read More
IRS Commissioner Chuck Rettig’s term ends on Nov. 12. Treasury Secretary Janet Yellen recently announced that Douglas O’Donnell has been designated the acting commissioner and will succeed Rettig. O’Donnell has been with the IRS for 36 years, serving in various roles including his current post as deputy commissioner for services and enforcement. He’ll lead the … Read More
As you’re aware, certain employers are required to report information related to their employees’ health coverage. Does your business have to comply, and if so, what must be done? Basic rules Certain employers with 50 or more full-time employees (called “applicable large employers” or ALEs) must use Forms 1094-C and 1095-C to report the information … Read More
The estimated federal budget deficit for fiscal year 2022 hit $1.4 trillion, exceeding projections from May 2022 by $341 billion. The Congressional Budget Office (CBO) recently reported that the overage reflects the Biden administration’s decision to provide student debt relief. Although student debt forgiveness was announced in August, the full multiyear costs are recorded up … Read More