The COVID-19 pandemic and resulting economic impact have hurt many companies, especially small businesses. However, for others, the jarring challenges this year have created opportunities and accelerated changes that were probably going to occur all along. One particular area of speedy transformation is technology. It’s never been more important for businesses to wield their internal … Read More
The IRS is reminding employers that they must file Form W-2 and other wage statements by Feb. 1, 2021, to avoid penalties and help the IRS prevent fraud. A 2015 law made it a permanent requirement that employers file copies of Form W-2, “Wage and Tax Statements” and Form W-3, “Transmittal of Wage and Tax … Read More
It’s almost time for calendar-year businesses to prepare their year-end financial statements. If used correctly, these reports can be a valuable management tool. Use them in benchmarking and forecasting to be proactive, not reactive, to market changes. 1. Benchmarking Historical financial statements can be used to evaluate the company’s current performance vs. past performance or … Read More
The Treasury Inspector General for Tax Administration (TIGTA) has issued its “Semiannual Report to Congress: April 1, 2020 – September 30, 2020.” According to the report, TIGTA’s Office of Audit completed 53 audits, and its Office of Investigations completed 1,123 investigations. The combined audit and investigative efforts resulted in the recovery, protection and identification of … Read More
As your company plans for the coming year, management should assess your strengths, weaknesses, opportunities and threats. A SWOT analysis identifies what you’re doing right (and wrong) and what outside forces could impact performance in a positive (or negative) manner. A current assessment may be particularly insightful, because market conditions have changed significantly during the … Read More
With federal income tax fraud continuing to be an issue, the IRS has expanded its Identity Protection (IP) PIN Opt-In program to taxpayers nationwide. Starting in mid-January, the program will be offered to all taxpayers who can properly verify their identities. The IP PIN is a six-digit number assigned to eligible taxpayers to help prevent … Read More
As we approach the end of the year, it’s a good time to think about whether your business needs to buy business equipment and other depreciable property. If so, you may benefit from the Section 179 depreciation tax deduction for business property. The election provides a tax windfall to businesses, enabling them to claim immediate … Read More
S corporations can provide tax advantages over C corporations in the right circumstances. This is true if you expect that the business will incur losses in its early years because shareholders in a C corporation generally get no tax benefit from such losses. Conversely, as an S corporation shareholder, you can deduct your percentage share … Read More
Are you thinking about selling stock shares at a loss to offset gains that you’ve realized during 2020? If so, it’s important not to run afoul of the “wash sale” rule. IRS may disallow the loss Under this rule, if you sell stock or securities for a loss and buy substantially identical stock or securities … Read More
Where’s your tax home? Taxpayers who live and work outside the U.S. may be able to exclude foreign-earned income. Generally, to qualify, a taxpayer must have a tax home (his or her regular place of business) in another country and not have an abode in the U.S. An American pilot employed by a U.S. airline … Read More