Tax-related identity theft can happen if someone steals your personal information to commit tax fraud. As part of its “Boost Security Immunity” campaign, the IRS is promoting tighter security using effective tools such as multi-factor authentication. This allows a taxpayer to add another layer of protection. It can involve a security code sent to a … Read More
Auditors typically deliver financial statements to calendar-year businesses in the spring. A useful tool that accompanies the annual report is the management letter. It may provide suggestions — based on industry best practices — on how to fortify internal control systems, streamline operations and reduce expenses. Managers generally appreciate the suggestions found in management letters. … Read More
The IRS has issued slightly higher depreciation deduction limits for passenger automobiles placed in service in calendar year 2021. Taxpayers with qualified property (including automobiles) may generally claim an additional first-year depreciation deduction equal to 100% for qualified property acquired after Sept. 27, 2017, and before Jan. 1, 2023. The 2021 depreciation limits are: $18,200 … Read More
A complete set of financial statements for your business contains three reports. Each serves a different purpose, but ultimately helps stakeholders — including managers, employees, investors and lenders — evaluate a company’s performance. Here’s an overview of each report and a critical question it answers. 1. Income statement: Is the company growing and profitable? The … Read More
The IRS has announced that 2021 family leave credits are available for employees who’ve helped others receive COVID-19 vaccinations. Wages paid for leave taken to accompany an individual who’s obtaining a COVID-19 vaccination (or to care for an individual who’s recovering from a vaccination) may be considered qualified family leave wages for purposes of the … Read More
Businesses rely on internal controls to help ensure the accuracy and integrity of their financial statements, as well as prevent fraud, waste and abuse. Given their importance, internal controls are a key area of focus for internal and external auditors. Many auditors use detailed internal control questionnaires to help evaluate the internal control environment — … Read More
The next time you call the IRS, you’ll be asked to provide specific information to verify your identification. To that end, the IRS has set out the identity information a caller should have ready. Among other requirements, the caller must provide a Social Security number (SSN) and birth date, an Individual Taxpayer Identification Number (if … Read More
In a “COVID Tax Tip,” the IRS provides advice on making payments of deferred employer Social Security taxes reported by third-party payers. Under the CARES Act, employers could defer payment of their share of Social Security taxes from March 27, 2020, through Dec. 31, 2020. Employers must pay 50% of the deferred taxes by Dec. … Read More
The IRS has issued guidance that updates its Employee Plans Compliance Resolution System (EPCRS). The EPCRS permits retirement plan sponsors to correct certain plan failures so that they can continue to provide employees with retirement benefits on a tax-favored basis. The EPCRS updates include two new defined benefit plan overpayment correction methods. The two methods … Read More
On its website, the IRS is providing information on the effects of advance Child Tax Credit (CTC) payments on other amounts owed to or from a taxpayer. Specifically, CTC payments won’t be reduced (that is, offset) for overdue taxes from previous years or other federal or state debts that taxpayers may owe. However, if taxpayers … Read More