The IRS has issued guidance providing relief from failure to make employment tax deposits for employers that are entitled to the refundable tax credits provided under two laws passed in response to the coronavirus (COVID-19) pandemic. The two laws are the Families First Coronavirus Response Act, which was signed on March 18, 2020, and the … Read More
The U.S. House has passed the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act. The bill would provide more than $1 trillion of aid to state, local, territorial and tribal governments to pay first responders and health care workers. It would also provide an additional recovery rebate, similar to the CARES Act economic impact … Read More
If you have a life insurance policy, you probably want to make sure that the life insurance benefits your family will receive after your death won’t be included in your estate. That way, the benefits won’t be subject to the federal estate tax. Under the estate tax rules, life insurance will be included in your … Read More
Can taxpayers take a deduction for fines and penalties they pay? Generally, no, but the IRS has issued proposed guidelines that include exceptions. The Tax Cuts and Jobs Act (TCJA) disallows tax deductions for fines, penalties and certain amounts a taxpayer must pay by court order or settlement agreement, related to a violation of law … Read More
You may have several different types of trusts in your estate plan. In general, to achieve the greatest tax savings, these trusts must be irrevocable, thus requiring you to give up control over the trust assets. Even though you appoint a trustee to oversee distribution of the trust’s assets, you can go a step further … Read More
The IRS and the Social Security Administration (SSA) must work together to fight employment-related identity-fraud, a report by the Government Accountability Office (GAO) warned. The report showed a key source of fraud involves individuals who use another person’s Social Security number. People may do this if they aren’t authorized to work in the United States, … Read More
Many business owners put off writing a mission statement. Who has time to write down why you’re in business when you’re busy trying to run one! And perhaps even fewer owners have created a vision statement — possibly because they’re not sure what the term even means. There are good reasons for creating both. Lenders, … Read More
Taxpayers have many questions regarding Economic Impact Payments (EIPs) and the IRS is answering some of them in FAQs on its website. Specifically, individuals are wondering whether an EIP is considered taxable income. The IRS said it’s not, and taxpayers won’t owe tax on it. In addition, the payment won’t reduce taxpayers’ refunds or increase … Read More
Traditionally, audit procedures for private companies tend to focus on the balance sheet. That is, auditors evaluate whether the book values of the company’s assets are overstated and its liabilities are understated. However, the income statement needs attention, too, especially in light of the updated guidance on recognizing revenue from contracts and the potential for … Read More
The IRS’s “People First Initiative” was set up to give taxpayers relief during the novel coronavirus (COVID-19) crisis. The relief (much of it previously announced) covers a variety of issues from easing payment guidelines to delaying compliance actions. It also involves extending many filing and payment deadlines to July 15. For example, you may delay … Read More