With the final quarter of 2020 underway, the IRS is reminding you to review your tax withholding. That can help avoid unexpected shortfalls when you file your tax return, or depending on the adjustment, boost take home pay this quarter. You can view the taxes owed, your payment history and other key details from your … Read More
You may view your will as the centerpiece of your estate plan. But other documents can complement it. For example, if you haven’t already done so, consider writing a letter of instruction. Elements of the letter A letter of instruction is an informal document providing your loved ones with vital information about personal and financial … Read More
The 2020 fiscal year, which ended on Sept. 30, 2020 is now history. The final estimate of the federal budget deficit is $3.1 trillion, according to a Congressional Budget Office (CBO) report. That shortfall, while enormous, is $180 billion less than expected, the CBO said. For the full year, receipts fell by $44 billion and … Read More
A conflict of interest could impair your auditor’s objectivity and integrity and potentially compromise you company’s financial statements. That’s why it’s important to identify and manage potential conflicts of interest. What is a conflict of interest? According to the America Institute of Certified Public Accountants (AICPA), “A conflict of interest may occur if a member … Read More
You have the right to know the IRS’s timeline for, or finality of, certain interactions with you. You have the right to know: the maximum amount of time you have to challenge the IRS position if you’re under audit; the maximum amount of time the IRS has to audit a tax year or collect a … Read More
Are you wondering if the passive activity loss rules affect business ventures you’re engaged in — or might engage in? If the ventures are passive activities, the passive activity loss rules prevent you from deducting expenses that are generated by them in excess of their income. You can’t deduct the excess expenses (losses) against earned … Read More
The IRS can’t deny Economic Impact Payments (EIPs) to incarcerated individuals, according to a recent federal district court decision. The person must satisfy the criteria for receiving an EIP, which is paid to individuals to help mitigate the financial effects of COVID-19. In an earlier IRS FAQ on its website, incarcerated individuals were among those … Read More
October 15 is the deadline for individual taxpayers who extended their 2019 tax returns. (The original April 15 filing deadline was extended this year to July 15 due to the COVID-19 pandemic.) If you’re finally done filing last year’s return, you might wonder: Which tax records can you toss once you’re done? Now is a … Read More
The IRS recently issued a statement about the protection of taxpayers’ return information. The release reaffirms the “extensive measures” the IRS reportedly has in place to monitor and prevent unauthorized access to, and disclosure of, taxpayers’ return information. “In response to recent press reports, the IRS has taken steps to reconfirm the integrity of its … Read More
What are excise taxes and does your business owe them? An excise tax is imposed on the sale of specific goods or services, or on certain uses. It’s generally imposed on sales of items such as fuel, airline tickets, indoor tanning and tires. Excise taxes may also be imposed at the time of import, sale … Read More