IRS document destruction update

In a recent audit, the Treasury Inspector General for Tax Administration announced the destruction of 30 million information returns filed with the IRS. The IRS now admits destroying the returns due to system constraints. The agency was required to process the backlog of documents by the end of the calendar year in which they were […]

Forecasts vs. projections: What’s the big difference?

Financial statements look at historical performance. But there are times when you want forward-looking reports to help your business make strategic investment decisions, evaluate the viability of a turnaround plan or apply for a loan. Your accountant can help ensure the assumptions underlying prospective financial statements make sense in today’s volatile marketplace. Key definitions When […]

Federal Revenue collections increase

In positive economic news, the Congressional Budget Office (CBO) is reporting a big boost in federal revenues thus far in fiscal year 2022. The federal budget deficit for the first seven months of fiscal year 2022 was an estimated $360 billion, or about one-fifth of the $1.9 trillion deficit recorded last year. Revenues surged by […]

Quarterly estimated taxes due

If you pay quarterly estimated taxes, circle this date on your calendar: June 15. That’s the payment due date for your second-quarter estimated taxes. Individuals, including sole proprietors, partners and S corporation shareholders, must make estimated tax payments if they expect to owe $1,000 or more in tax when their tax return is filed. In […]

Benefits of offering child care to employees

America’s small businesses aren’t ready for a cyberattack

From CNBC – America’s small businesses aren’t ready for a cyberattack – CNBC https://cnb.cx/3LzBiRV If you own a small business, read and take action. You need to prepare for this risk.

IRA rollovers

You can roll over funds from one IRA to another tax free as long as you complete the rollover within 60 days. What if you miss the deadline? You may owe tax and an early distribution penalty if you’re under age 59½. The IRS may waive the penalty if there are extenuating circumstances. In a […]

The Tax Gap

Have you ever heard about the “tax gap” and wondered what it is? According to the IRS, “the gross tax gap is the difference between true tax liability for a given period and the amount of tax that is paid on time.” The tax agency explains that estimates consistently show the United States “enjoys a […]

Welcome to IRS Appeals

Welcome to IRS Appeals https://bit.ly/3wvs84M

Passive Activity Losses

Generally, a loss from real estate activities is a passive activity loss (PAL). A PAL is only deductible from passive income unless the taxpayer qualifies as a “real estate professional.” That means the taxpayer must prove that at least 750 hours of service during the year involved real estate. In one case, an HVAC business […]