When the COVID-19 crisis exploded in March, among the many concerns was the state of the nation’s supply chains. Business owners are no strangers to such worry. It’s long been known that, if too much of a company’s supply chain is concentrated (that is, dependent) on one thing, that business is in danger. The pandemic … Read More
A recent Treasury Inspector General for Tax Administration (TIGTA) audit has concluded that most IRS applications have insufficient audit trails to detect unauthorized access to sensitive taxpayer information. The audit said that while the IRS has made “some progress” in implementing relevant solutions to address audit trail weaknesses, “[the] solutions are not effective, and the … Read More
If you’re a partner in a business, you may have come across a situation that gave you pause. In a given year, you may be taxed on more partnership income than was distributed to you from the partnership in which you’re a partner. Why is this? The answer lies in the way partnerships and partners … Read More
The IRS is issuing $500 per qualifying child to some parents. These individuals used the IRS Non-Filers tool before May 17, 2020, and claimed at least one qualifying child. These individuals didn’t receive the qualifying child portion of the Economic Impact Payment (EIP) because of an error that was corrected on May 17. Direct deposit … Read More
Does your business receive large amounts of cash or cash equivalents? You may be required to submit forms to the IRS to report these transactions. Filing requirements Each person engaged in a trade or business who, in the course of operating, receives more than $10,000 in cash in one transaction, or in two or more … Read More
The IRS has issued guidance that addresses questions about the special funding and benefit limitations rules for single-employer defined benefit pension plans under the CARES Act. In a nutshell, the special rules state that a contribution that would otherwise be required to be made during the 2020 plan year must be made by Jan. 1, … Read More
While the COVID-19 crisis has devastated many existing businesses, the pandemic has also created opportunities for entrepreneurs to launch new businesses. For example, some businesses are being launched online to provide products and services to people staying at home. Entrepreneurs often don’t know that many expenses incurred by start-ups can’t be currently deducted. You should … Read More
There’s a new IRS form for business taxpayers that pay or receive nonemployee compensation. Beginning with tax year 2020, payers must complete Form 1099-NEC, Nonemployee Compensation, to report any payment of $600 or more to a payee. Why the new form? Prior to 2020, Form 1099-MISC was filed to report payments totaling at least $600 … Read More
Did you recently file your federal tax return and were surprised to find you owed money? You might want to change your withholding so that this doesn’t happen next year. You might even want to do that if you got a big refund. Receiving a tax refund essentially means you’re giving the government an interest-free … Read More
Economic Impact Payments (EIPs) totaling $1.4 billion were sent to deceased persons, said the Treasury Inspector General for Tax Administration. How did that happen? The Government Accounting Office (GAO) said, in the interest of speed, initial batches of EIPs went out without reference to Social Security Administration death records. If similar payments are made in … Read More