Business owners who have been audited by the IRS are likely aware that the process may be stressful. It might help to understand what IRS auditors know about the business’s industry. IRS examiners generally do research on a specific industry and on issues on a...
This calendar notes important tax deadlines for the second quarter of 2022....
It may not be too late to lower your 2021 tax bill. Qualified individuals can still make deductible contributions to traditional IRAs until the tax filing date of April 18, 2022, and claim the deduction for 2021. This article provides details, including alternate strategies....
Business owners who intend to hire should be aware of a recent law that has extended through 2025 a valuable credit to those that hire members of certain targeted groups. This article provides the limits and other details of the Work Opportunity Tax Credit and...
It’s an awful feeling to learn that your credit or debit card has been used fraudulently. Whether you’re liable for charges typically depends on the type of card, whether you still possess the card and when the card issuer is alerted. This article provides further...
An employer-sponsored flexible spending account allows participants to pay health care costs with pre-tax dollars and be reimbursed, tax-free. Unused funds at year-end may be forfeited unless the plan includes one of two exceptions. In 2021, the IRS added some items to the list of...
They say the early bird gets the worm. Early federal income tax filers may get a couple worms. This article discusses two benefits to filing early. A sidebar addresses the idea of not filing a 2021 tax return until one’s delayed 2020 tax refund is...
COVID-19’s rapid spread and the economic havoc that followed are vivid reminders of how unpredictable and volatile the broad economy — and each family’s personal finances — can be. This article discusses three financial lessons that may be learned from the pandemic....
Business owners should remember that the 50% deduction limit for certain meals remains suspended in 2022. That means companies can deduct 100% of the cost of business-related, restaurant-provided meals. This brief article has the details....
Because of the COVID-19 pandemic and other reasons, job upheaval has become common among Americans. If you’ll soon be changing employers, you should handle your retirement plan carefully. This article outlines the four basic options for plan rollovers....
Many businesses need to invest in heavy sport utility vehicles (SUVs) to transport equipment and provide timely services. Fortunately, they may be able to claim valuable tax deductions for the purchases. This article provides an overview of the tax rules and benefits for SUV purchases....
To support a charitable deduction, taxpayers need to comply with IRS substantiation requirements. But what if you never receive a letter from the charity substantiating a donation? This article explains the rules and notes a valuable tax deduction....
This calendar notes important tax deadlines for the first quarter of 2022....
Babies bring joy and excitement. They also bring substantial adjustments to the family budget! This article discusses a couple of ways to pacify the challenge: checking insurance and reviewing tax breaks. A sidebar advises starting a college fund as early as possible....
Taxpayers who are gig workers or otherwise self-employed likely must make estimated tax payments to the IRS every quarter. This article notifies readers of an upcoming payment deadline, explores the details of estimated tax payments, and looks at a method that may help people whose...
For hard-to-value assets, such as closely held businesses, real estate and art, a professional appraisal may be necessary. This article explores situations that call for an appraisal, including retirement and estate planning, gift disclosures and charitable donations....
Since the introduction of the qualified business income (QBI) deduction, many business owners have been left wondering whether they qualify for it. This brief article explains who’s eligible and how businesses may take action at year end to qualify....
Many Americans receive disability income, and the question is often asked: Is it taxable? The short answer is: That depends on who paid for it. This article details how and when taxes may apply. A sidebar discusses how much disability coverage an individual may need....
Owners of closely held corporations often want or need to withdraw cash from the business. The simplest way is to distribute the money as a dividend, but that isn’t tax-efficient. This article suggests several other ways to withdraw cash with generally better tax consequences, such...
Many people don’t know that you can transfer funds directly from an IRA to a Health Savings Account (HSA) without taxes or penalties. However, a taxpayer may do so only once during his or her lifetime. This article discusses some of the important points to...
When one of a company’s customers can’t pay up, the business may be able to claim a tax deduction for the “bad debt” under Internal Revenue Code Section 166. To successfully do so, however, the business owner must know how the tax code defines a...
This calendar notes important tax deadlines for the fourth quarter of 2021....
Electric vehicles (EVs) are increasing in popularity all the time, and more of them are qualifying for a federal tax credit. For example, the IRS added three more eligible models in July. This article discusses the definition of EVs for tax purposes as well as...
Because of the current estate tax exemption amount ($11.7 million in 2021), many estates no longer need to be concerned with federal estate tax. As a result, more energy can be devoted to other aspects of estate planning. This article looks at important issues to...
As investing in Bitcoin, Dogecoin and other cryptocurrencies becomes more popular, investors need to understand the potential tax ramifications. Unlike traditional currency, the IRS views cryptocurrency as property. This article explores the impact on capital gains and losses as well as defines key terms such...
Family businesses make up a huge percentage of companies in the United States and produce much of the country’s gross domestic product. However, for various reasons, they may also potentially face higher fraud risk. This article discusses why, and how family business owners can reduce...
If your child has been awarded a scholarship for college or another type of school, it’s certainly cause for celebration. But parents need to be aware of the potential tax implications. This article explains whether or not scholarships are taxable. ...
If you’re a partner in a business, you may have encountered a situation that gave you pause. In any given year, you may have been taxed on more partnership income than was distributed to you. The cause of this quirk of taxation lies in the...
July 15 — If the monthly deposit rule applies, employers must deposit the tax for payments in June for Social Security, Medicare, withheld income tax and nonpayroll withholding. August 2 — The second quarter Form 941 (“Employer’s Quarterly Federal Tax Return”) is due today. (If your...
Many individual taxpayers fondly recall the stimulus payments issued this spring under the American Rescue Plan Act. However, the law contains plenty of other provisions also worth remembering. This article reviews four highlights. A sidebar looks at the income exclusion for unemployment benefits....
