Groups representing tax lawyers and accountants have repeated calls for the IRS to act immediately to improve customer service, including the suspension of automated notices. As you may know, the agency is struggling to process a huge backlog of returns. One group, the American Institute of Certified Public Accountants (AICPA), said the IRS should discontinue … Read More
Inattention to beneficiary designations and jointly titled assets can quickly unravel your estate plan. Suppose, for example, that your will provides for all of your property to be divided equally among your three children. But what if your IRA, which names the oldest child as beneficiary, accounts for half of the estate? In that case, … Read More
If your business issued Forms 1099 for 2021, you may soon hear from the IRS. Twice a year, the IRS sends notices (CP2100 and CP2100A) informing financial institutions, businesses and other payers that issued Forms 1099 about errors or omissions. If the names and/or taxpayer ID numbers (TINs) on the 1099s are missing or don’t … Read More
Relief is available to businesses if they owe penalties for additional income tax due to retroactive employee retention credit (ERC) claims. The ERC is a refundable credit claimed on employment tax returns. The IRS requires employers to reduce the income tax deduction for “ERC qualified wages” by the amount of ERC the employer received for … Read More
Spring has sprung — and summer isn’t far off. If your business typically hires minors for summer jobs, now’s a good time to brush up on child labor laws. In News Release No. 22-546-DEN, the U.S. Department of Labor’s Wage and Hour Division (WHD) recently announced that it’s stepping up efforts to identify child labor … Read More
The Congressional Budget Office (CBO) has reported that the federal budget deficit for the first six months of fiscal year 2022 was an estimated $667 billion, or about 40% of the shortfall recorded during the same period last year. Revenues jumped by $418 billion (25%) and outlays dropped by $622 billion (18%), the CBO said. … Read More
In today’s volatile economy, many businesses and nonprofits have been required to write down the value of acquired goodwill on their balance sheets. Others are expected to follow suit — or report additional write-offs — in 2022. To the extent that goodwill is written off, it can’t be recovered in the future, even if the … Read More
For taxpayers who’ve filed for an extension, highlight this date on your calendar: Monday, Oct. 17. That’s the new deadline to file your tax return with the IRS. Be aware that an extension of time to file will automatically process if taxpayers paid all or part of their taxes electronically by this year’s original due … Read More
If you’re an investor in mutual funds or you’re interested in putting some money into them, you’re not alone. According to the Investment Company Institute, a survey found 58.7 million households owned mutual funds in mid-2020. But despite their popularity, the tax rules involved in selling mutual fund shares can be complex. What are the … Read More
403(b) retirement plans are available to employees of schools, colleges, religious entities and other tax-exempt organizations. For some employees, 403(b) accounts are their main retirement saving vehicles, although others supplement them with other plans. In a recent report, the Government Accountability Office found that the fees associated with 403(b) plans “varied widely” depending on the … Read More