Limited staff and financial resources during the novel coronavirus (COVID-19) pandemic may have your not-for-profit looking for new ways to achieve your mission. Partnering with a like-minded organization potentially enables you to pool funds, staff and supporters — temporarily or permanently. 2 primary arrangements There are many types of partnership arrangements between nonprofit organizations. But … Read More
The IRS has issued final regulations regarding the qualified business income (QBI) deduction. The regs provide guidance on the treatment of previously suspended losses included in QBI and the determination of the Sec. 199A deduction for taxpayers that hold interests in regulated investment companies (RICs) and certain estates and trusts. The final regs adopt the … Read More
Do you want to save more for retirement on a tax-favored basis? If so, and if you qualify, you can make a deductible traditional IRA contribution for the 2019 tax year between now and the extended tax filing deadline and claim the write-off on your 2019 return. Or you can contribute to a Roth IRA … Read More
Did you receive an Economic Impact Payment (EIP)? Tens of millions of Americans were sent EIPs to help defray the financial impact brought by COVID-19. If you received an EIP in a check, direct deposit or prepaid debit card, you should’ve also received a letter about 15 days later informing you that a payment was … Read More
The coronavirus (COVID-19) pandemic has affected many Americans’ finances. Here are some answers to questions you may have right now. My employer closed the office and I’m working from home. Can I deduct any of the related expenses? Unfortunately, no. If you’re an employee who telecommutes, there are strict rules that govern whether you can … Read More
Generally, taxpayers who take distributions from tax-favored retirement accounts before age 59½ must pay a 10% tax penalty. They must also include those funds in their taxable income for the year. Thanks to the CARES Act, for those affected by the COVID-19 virus, the 10% penalty is waived on distributions of up to $100,000 taken … Read More
There are several tools you can use to build flexibility into your estate plan. Flexibility is especially important now because of an uncertain estate planning environment. The federal gift and estate tax exemption currently is an inflation-adjusted $11.58 million (the highest it’s ever been) but it’s scheduled to drop to its pre-2018 level of $5 million (indexed … Read More
Has COVID-19 affected IRS audits? The IRS recently posted FAQs on the topic on its website. In them, the IRS states that it has suspended face-to-face meetings related to current field, office and correspondence examinations. To work on current cases, it has expanded its secure electronic communications to support taxpayers and may reach out by … Read More
The novel coronavirus (COVID-19) pandemic has refocused people’s thoughts on the health and safety of their families. In addition to taking the necessary steps today to protect your loved ones, it’s equally important to consider their financial security in the future. If you don’t have a will, drafting one should be your first step in … Read More
Will myths about taxes never end? Each year, the IRS combats misinformation, mostly related to tax refunds. Here are some myths currently in play: Getting a refund on your 2019 return means you don’t need to adjust your 2020 withholding. That’s not always true, so the IRS urges taxpayers to check and adjust their withholding … Read More