Property seizures by the IRS aren’t always by the book, according to a Treasury Inspector General for Tax Administration (TIGTA) audit. It reviewed 60% of the seizures from the 12 months that ended June 30, 2019 to evaluate IRS compliance with the law and with IRS’s own rules. The sample revealed seizures that weren’t in … Read More
On September 17, the Financial Accounting Standards Board (FASB) issued an accounting rule that will provide more detailed information about noncash contributions charities and other not-for-profit organizations receive known as “gifts in kind.” Here are the details. Need for change Gifts in kind can play an important role in ensuring a charity functions effectively. They may … Read More
The IRS has issued final regulations on the business expense deduction for meals and entertainment. The Tax Cuts and Jobs Act generally eliminated the deduction for expenses related to activities generally considered entertainment or recreation. However, taxpayers may still deduct some business expenses related to food and beverages. The final regs address the disallowance of … Read More
Do you buy or lease computer software to use in your business? Do you develop computer software for use in your business, or for sale or lease to others? Then you should be aware of the complex rules that apply to determine the tax treatment of the expenses of buying, leasing or developing computer software. … Read More
In an economy rocked by the COVID-19 crisis, many taxpayers need a new way to earn income. If starting a new business is your goal, the IRS offers some helpful tips on actions you’ll need to take: Choose the business structure you wish to use, such as sole proprietorship, partnership or corporation. Apply to the … Read More
As a result of the current estate tax exemption amount ($11.58 million in 2020), many estates no longer need to be concerned with federal estate tax. Before 2011, a much smaller amount resulted in estate plans attempting to avoid it. Now, because many estates won’t be subject to estate tax, more planning can be devoted … Read More
A reminder for business owners: For now, no change to a key e-file mandate. Businesses that file at least 250 of information returns (such as Forms 1099) in a calendar year are required to e-file those returns. However, the Taxpayer First Act was amended in July 2019 to allow the IRS to lower the threshold … Read More
Generally, the proceeds of your life insurance policy are included in your taxable estate. You can remove them by transferring ownership of the policy, but there’s a catch: If you wait too long, your intentions may be defeated. Essentially, if ownership of the policy is transferred within three years of your death, the proceeds revert … Read More
New vehicles are now available for a tax break. On its website, the IRS has added several 2021 model year Honda and Volvo vehicles to the list of vehicles eligible for the plug-in electric drive motor vehicle tax credit. The tax code provides a credit to the purchaser of a qualified plug-in electric drive motor … Read More
Final IRS regulations have been issued on the federal income tax withholding for certain periodic retirement and annuity payments. The final regs update the rules for payments made after Dec. 31, 2020. Prior to the Tax Cuts and Jobs Act (TCJA), if no withholding certificate was in effect for a taxpayer’s retirement and annuity payments, … Read More