The demand for qualified accounting and finance personnel has grown, as business owners struggle to manage unpredictable cash flows, increased costs, and new government policies and financial aid packages. Plus, the potential job market for these professionals has expanded, thanks to technological changes that now allow them to transcend geographic boundaries and work from virtually … Read More
The IRS needs better enforcement of the tax rules imposed on those giving up or abandoning their U.S. citizen or resident status, said one report. A Treasury Inspector General for Tax Administration (TIGTA) audit found that from 2008 to 2018, the number of expatriates rose greatly. Yet the IRS didn’t have “a centralized compliance effort … Read More
The coming audit season might be much different than seasons of yore. As many companies continue to operate remotely during the COVID-19 pandemic, audit procedures are being adjusted accordingly. Here’s what might change as auditors work on your company’s 2020 year-end financial statements. Eye on technology Fortunately, when the pandemic hit, many accounting firms already … Read More
Did you know that IRS audit rates generally increase as incomes rise, but there are exceptions? According to the IRS, for 2015 (the most recent year for which the IRS provided data), taxpayers with positive income between $100,000 and $200,000 were audited at a rate of 0.47%, while those with incomes between $1 million and … Read More
Every business owner is aware of the threat posed by cybercriminals. If a hacker were to gain access to the sensitive data about your business, customers or employees, the damage to your reputation and profitability could be severe. You’re also probably aware of the specific danger of “phishing.” This is when a fraudster sends a … Read More
The statute of limitations doesn’t affect an excessive refund claim penalty, according to IRS guidance. If a taxpayer makes a claim for a refund or income credit in an “excessive amount,” he or she is generally liable for a penalty equal to 20% of that sum. In one case, a taxpayer filed a return more … Read More
One economic effect of the COVID-19 pandemic has been mounting unpaid tax. “The IRS understands that many taxpayers face challenges, and we’re working hard to help people facing issues paying their tax bills,” said IRS Commissioner Chuck Rettig. To make it easier for taxpayers to settle their IRS tax debts, the agency has made some … Read More
Do you have a Flexible Spending Account (FSA) with your employer? Make sure to take full advantage of it this year and in the new year. For 2021, the contribution limit remains at $2,750 (unchanged from 2020). If an employer permits, employees can carry over up to $550 of unused funds into 2022 (the carryover … Read More
The IRS has issued the 2021 long-term capital gains rate bracket numbers. The maximum income required to qualify for the 0% bracket will be $40,400 for single taxpayers, $80,800 for married taxpayers filing jointly and $54,100 for heads of households. For the 15% bracket the maximum income will be $445,850 for single filers, $501,600 for … Read More
Unfortunately, the COVID-19 pandemic has forced many businesses to shut down. If this is your situation, we’re here to assist you in any way we can, including taking care of the various tax obligations that must be met. Of course, a business must file a final income tax return and some other related forms for … Read More