A closer look at shareholder advances

Shareholders sometimes provide funds to their businesses outside of their initial investment or regular capital contributions. These transfers — commonly referred to as shareholder advances — raise an important accounting question: Under U.S. Generally Accepted Accounting Principles (GAAP), should the business report the advance as a liability or as equity? The term “shareholder” technically refers […]

Partnership Owners: Can You Deduct Out-of-Pocket Business Expenses?

Owners of businesses taxed as partnerships sometimes pay work-related expenses out of pocket. Whether such payments are deductible for federal tax purposes depends largely on the partnership agreement, LLC operating agreement, or an established policy or practice. Allowable expenses may be deductible if the owner is required to bear them without reimbursement. Expenses that could […]

Net operating loss deductions

Test your knowledge on Net operating loss deductions

The Scariest Thing This Halloween? A Tax Audit!

🎃 What’s scarier than ghosts, goblins, and things that go bump in the night? An IRS audit! Nobody wants an unexpected letter from the IRS or another taxing authority. A tax audit can be stressful, time-consuming, and costly—particularly when records are incomplete or questions arise about a tax return. While you can’t always prevent an […]

Building Improvements: Can Your Business Deduct the Costs Now?

Some small business owners making building improvements may not have to wait years to deduct all of the costs. A special IRS safe harbor lets qualifying small businesses deduct certain improvement costs immediately instead of depreciating them over several years. To qualify, the business’s average annual gross receipts must be $10 million or less for […]

Jury Duty Pay: Don’t Miss This Tax Deduction

Did you serve on jury duty this year? You may qualify for a federal income tax deduction. If your employer continued paying you while you served and required you to turn over the jury duty pay you received from the court, you generally can deduct the amount you remitted to your employer. This deduction is […]

Educators may be able to claim 2 deductions for 2026 classroom expenses

Teachers and other educators often spend their own money on books, supplies, equipment and other classroom needs. For 2026, eligible educators may have two ways to deduct qualifying unreimbursed expenses. One deduction is available whether or not they itemize, and a new deduction under the One Big Beautiful Bill Act (OBBBA) is available to itemizers. […]

You May Receive an Adoption Tax Credit Refund Without Amending Your Return

If you’re one of the more than 50,000 taxpayers who claimed a prior-year carryforward of the adoption tax credit, you may receive a refund by the end of 2026. For tax year 2025, adoption tax credit carryforwards from tax years 2020 through 2024 can increase the refundable amount of the credit (limited to $5,000 per […]

IRS Finalizes Rules for Credit and Debit Card Tax Payments

The IRS has finalized regulations allowing it to accept credit and debit card tax payments directly. Previously, it was prohibited from paying fees under third-party processor contracts and taxpayers were directed to a separate site to make card payments. Taxpayers paid processing fees directly to the third-party processor. Now, the IRS may contract with processors […]

When an employee’s Form W-4 raises red flags

Your employees use Form W-4, “Employee’s Withholding Certificate,” to tell you how much federal income tax to withhold from their pay. Most forms are routine, but an altered certificate, unusual accompanying statement or IRS lock-in letter may require special handling. Knowing how to respond can help your business meet its withholding obligations without becoming involved […]