Many business owners — particularly those who own smaller companies — spend so much time trying to eliminate weaknesses that they never fully capitalize on their strengths. One way to do so is to identify and explicate your unique selling proposition (USP). Give it some thought In a nutshell, a USP states why customers should … Read More
News
IRS: COVID-19 Harships – IRA Withdraw
Are you suffering financially due to COVID-19? You might qualify to withdraw up to $100,000 from your IRA or other retirement plan before 12/31/20 without any negative tax consequences. Qualifying distributions aren’t subject to the 10% tax penalty that generally applies to distributions made before age 59½, and the regular tax liability can be paid … Read More
Looking for a trust that can also act as a financial backup plan? Consider a SLAT
Some of the most effective estate planning strategies involve setting up irrevocable trusts. For a trust to be deemed irrevocable, you, the grantor, lose all incidents of ownership of the trust’s assets. In other words, you’re effectively removing those assets from your taxable estate. But what if you’re uncomfortable placing your assets beyond your control? … Read More
IRS: Fraud Detection Expansion Accolades
The IRS has done a praiseworthy job expanding fraud detection, according to an audit by the Treasury Inspector General for Tax Administration (TIGTA). The audit reviewed IRS tax refund fraud practices, which TIGTA calls “extremely effective in addressing the identity theft epidemic and reducing its negative impact on tax administration.” Refund fraud occurs when a … Read More
Does your company have an emergency succession plan?
For business owners, succession planning is ideally a long-term project. You want to begin laying out a smooth ownership transition, and perhaps grooming a successor, years in advance. And you shouldn’t officially hand over the reins until many minute details have been checked and rechecked. But it doesn’t always work out this way. As the … Read More
IRS: Resumption of Post-posed IRS Actions
The July 15 tax filing deadline is in the rearview mirror and many IRS actions that were postponed due to the COVID-19 virus will now resume. Among them are collection activities, including the filing of liens and levies. A tax lien is an encumbrance on property to secure payment of tax, generally preceded by a … Read More
IRS releases 2021 amounts for Health Savings Accounts
The IRS recently released the 2021 inflation-adjusted amounts for Health Savings Accounts (HSAs). HSA basics An HSA is a trust created or organized exclusively for the purpose of paying the “qualified medical expenses” of an “account beneficiary.” An HSA can only be established for the benefit of an “eligible individual” who is covered under a … Read More
IRS: Form 8200 Advance Payment
Did your company file for COVID-19-related employer tax credits and experience delays in the processing of Form 7200, “Advance Payment of Employer Credits Due to COVID-19?” If so, you’ll soon be hearing from the IRS. Form 7200 is used by qualified employers to request an advance payment of the CARES Act’s employee retention credit or … Read More
A nonworking spouse can still have an IRA
It’s often difficult for married couples to save as much as they need for retirement when one spouse doesn’t work outside the home — perhaps so that spouse can take care of children or elderly parents. In general, an IRA contribution is allowed only if a taxpayer has compensation. However, an exception involves a “spousal” … Read More
IRS: Extra Payment from Government
No, you can’t keep an extra payment from the government. If you think you’ve received more than one Economic Impact Payment (EIP), the IRS would like it back. On its website, the IRS instructs taxpayers to double check that an extra payment isn’t a 2019 tax refund, an unemployment compensation payment or an EIP for … Read More