The novel coronavirus (COVID-19) pandemic and the resulting economic fallout is dealing a crushing blow to charitable organizations. Indeed, during a time when food banks, disaster relief and other nonprofit services are needed most by the public, their funding is suffering due to cancelled fundraising events and other factors. If philanthropy is an important part … Read More
A recent audit of the IRS Criminal Investigations (CI) unit looked at spending for undercover confidential operations. The Treasury Inspector General for Tax Administration (TIGTA) audit showed $1.3 million was spent in fiscal year 2018 to carry out undercover operations. Most travel spending was found to be well documented, but TIGTA wants to see procedures … Read More
As businesses across the country grapple with the economic fallout from the novel coronavirus (COVID-19) pandemic, many must decide whether to downsize their workforces to lower payroll costs and stabilize cash flow. If your company is contemplating such a move, you’ll likely want to consider the choice within the choice: that is, should you lay … Read More
The Taxpayer Advocate Service (TAS) routinely helps address taxpayer issues. But in a recent memorandum, it announced it won’t accept cases that are solely related to Economic Impact Payments (EIPs). EIPs are amounts paid to eligible taxpayers to help them deal with the effects of the novel coronavirus (COVID-19). Many taxpayers who haven’t received their … Read More
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law on March 27, 2020, contains several tax-related provisions for businesses hit by the novel coronavirus (COVID-19) crisis. Those provisions will also have an impact on financial reporting. Companies that issue financial statements under U.S. Generally Accepted Accounting Principles (GAAP) are required to follow Accounting … Read More
The U.S. House has passed, by a vote of 417-1, the Paycheck Protection Program (PPP) Flexibility Act of 2020. The bill would provide more flexibility for participants in the PPP program, including allowing those participants to defer the payment of certain payroll taxes that the CARES Act prevented them from deferring. Highlights of the bill … Read More
Efforts to contain the spread of the novel coronavirus (COVID-19) have led to suspension of many economic activities, putting unprecedented strain on businesses. The Securities and Exchange Commission (SEC) recently issued guidance to help public companies provide investors and other stakeholders with useful, accurate financial statement disclosures in today’s uncertain marketplace. New disclosure guidance On … Read More
The IRS has announced 2021 inflation-adjusted amounts for contributions to Health Savings Accounts (HSAs). An HSA is a tax-exempt account funded with pretax dollars that can be used only for qualified medical expenses. However, an HSA must be coupled with a high-deductible health plan (HDHP). For calendar year 2021, to qualify as an HDHP, a … Read More
A recent report identified many security control deficiencies at the IRS. The Government Accountability Office (GAO) report tested IRS systems and revealed 11 areas of deficiency. They include: access controls, configuration management, segregation of duties and information security management program controls. The report also noted that, while progress has been made on some previous recommendations, … Read More
Questions keep popping up about the Economic Impact Payments (EIPs) being sent to millions of Americans, and so do new answers from the IRS. For example, can you have your EIP sent to a prepaid debit card? The IRS says “maybe.” It depends on your prepaid card and whether your payment has already been scheduled. … Read More