Some might say the end of one calendar year and the beginning of another is a formality. The linear nature of time doesn’t change, merely the numbers we use to mark it. Others, however, would say that a fresh 12 months — particularly after the arduous, anxiety-inducing nature of 2020 — creates the perfect opportunity … Read More
The IRS has issued the 2021 standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. As of Jan. 1, 2021, the standard mileage rates for the use of a vehicle are: 56 cents per mile for business use; 16 cents per mile for medical … Read More
The Taxpayer Advocate Service (TAS) has provided details about the Notice 1052-D insert, which provides taxpayers with additional time to pay taxes that are past due. The insert was sent to some taxpayers because the IRS experienced a delay in mailing some notices due to COVID-19. The insert provides taxpayers a new due date, Jan. … Read More
The best choice of entity can affect your business in several ways, including the amount of your tax bill. In some cases, businesses decide to switch from one entity type to another. Although S corporations can provide substantial tax benefits over C corporations in some circumstances, there are potentially costly tax issues that you should … Read More
The new law extends and improves charitable donation tax breaks. For 2020, individuals who don’t itemize deductions could take up to a $300 above-the-line deduction for cash contributions to qualified charitable organizations. The Consolidated Appropriations Act (CAA), which was signed on Dec. 27, 2020, extends this deduction through 2021. The law increases it to $600 … Read More
When it comes to taxes, December 31 is more than just New Year’s Eve. That date will affect the filing status box that will be checked on your 2020 tax return. When filing a return, you do so with one of five tax filing statuses. In part, they depend on whether you’re married or unmarried … Read More
The IRS announced temporary relief for employers and employees using the automobile lease valuation rule. In response to the COVID-19 pandemic, the IRS relief involves determining the value of an employee’s personal use of an employer-provided vehicle. That value is used to calculate an amount to include in the employee’s gross income. Under the auto … Read More
Precise language is critical in wills, trusts and other estate planning documents. A lack of clarity may be an invitation to litigation. An example of this is the dispute that arose after Tom Petty’s death between his widow and his two daughters from a previous marriage. (The two parties have since resolved their differences and … Read More
A whistleblower who provides the IRS with information about another party’s unpaid taxes may be entitled to a financial award. The IRS Whistleblower Office just released its annual report. In fiscal year 2020, it paid out 169 awards totaling $86.6 million. Proceeds collected during the year totaled $472 million. Whistleblower claims assigned in FY 2020 … Read More
In the early 1990s, the Balanced Scorecard approach to strategic planning was developed to enable business owners to better organize and visualize their objectives. With 2021 shaping up to be a year of both daunting challenges and potentially remarkable recovery, your company should have a strategic plan that’s both comprehensive and flexible. Giving this methodology … Read More