Miss the deadline?

The IRS is encouraging individuals who missed last Monday’s tax filing deadline to file as soon as possible. If you’re due a refund, you won’t receive a penalty for filing late. If you owe the IRS and missed the deadline without requesting an extension, filing sooner can limit the amount of penalties or interest assessed. […]

Tax considerations when adding a new partner at your business

Adding a new partner in a partnership has several financial and legal implications. Let’s say you and your partners are planning to admit a new partner. The new partner will acquire a one-third interest in the partnership by making a cash contribution to it. Let’s further assume that your bases in your partnership interests are […]

Early withdrawal penalty for IRAs

At tax time, age matters. Taxpayers under age 59½ who take distributions from their retirement plans must generally pay an added tax penalty, equal to 10% of the distribution. Exceptions exist, including the need to pay documented medical bills (subject to statutory limitations). When one taxpayer under age 59½ lost his job, he took a […]

IRS notices on 1099s coming soon

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 […]

Goodwill in a bad economy

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 […]

Penalty relief for Employee Retention Credit

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 […]

Child and Dependent Care Credits

The Treasury Inspector General for Tax Administration (TIGTA) has weighed in on the IRS’s implementation of the expanded Child and Dependent Care Credit (CDCC). The CDCC was expanded temporarily by the American Rescue Plan Act for Tax Year 2021 for certain taxpayers. But TIGTA, which provides independent oversight of the IRS, issued 11 alerts to […]

Good news about Black-owned businesses

Missouri Tax Reform Could Give State Competitive Edge

From the Tax Foundation; Missouri Tax Reform Could Give State Competitive Edge https://bit.ly/3xNKaA  The legislature is looking at tax reform that could transform Missouri’s position with businesses.

OECD attempts to level the playing field

This week, U.S. Treasury Secretary Janet Yellen is meeting with finance ministers from other Group of 20 countries to discuss global tax rates. The Treasury’s goals include “leveling the playing field between U.S. and foreign corporations, ensuring corporations pay their fair share, and preventing the offshoring of American jobs.” The Organization for Economic Cooperation and […]