CRS issues report on small company tax provisions

In a new report, the Congressional Research Service (CRS), a nonpartisan advisory group, reviews several ways the federal income tax system might treat small companies preferentially. The CRS studied 14 current small business tax benefits, including an expensing allowance for machinery and equipment and tax credits for start-ups to establish employee retirement plans. It found […]

Auditing accounting estimates

When companies report financial results, they often rely on estimates made by management. Examples include the allowance for doubtful accounts, warranty obligations, costs of pending litigation, goodwill impairment and the fair values of acquired intangible assets. How do auditors evaluate whether amounts reported on the financial statements for these items seem reasonable? Inquiry and testing […]

GAO reports on corporate tax rates

The Government Accountability Office (GAO) has issued a report on corporate income tax rates before and after the enactment of the Tax Cuts and Jobs Act (TCJA) in Dec. 2017. The GAO described the percentage of large corporations that had no federal income tax liability, the average effective tax rates of large corporations and the […]

IRS oversight by Ways and Means Committee

House Ways and Means Committee Chairman Jason Smith (R-MO) is planning aggressive oversight of the IRS. To that end, he’s established an online form to assist IRS personnel who want to submit information confidentially to the committee. Smith said such information can include concerns, information or documents related to misconduct, maladministration, taxpayer mistreatment, wrongdoing or […]

Life events that should prompt an estate plan review

5 scams to watch out for in 2023

These are 5 scams to watch out for in 2023, according to a consumer protection expert https://cnb.cx/3Y1yaVS

Early withdrawal penalties upheld by Tax Court

At tax time, age matters. Taxpayers who take distributions from their retirement accounts before age 59½ will generally owe a penalty of 10% of the amount. Exceptions exist, such as the need to pay documented medical bills (within statutory limits). One taxpayer, a software developer under age 59½, took a distribution after losing his job. […]

Payment date for Backup withholding approaching

The due date for paying and reporting backup withholding is almost here, reminds the IRS. Businesses and other payers that were required to withhold tax from certain payments in 2022 to meet backup withholding requirements must report the amounts by filing Form 945 by Jan. 31, 2023. Payers that made all federal deposits in full […]

State Tax Policy as an Inflation Response

State Tax Policy as an Inflation Response https://bit.ly/40ra6gL

Tax Court ruling allows an Engineering Company to take deduction in an unusual case

Recently, the Tax Court ruled that an engineering company that installs energy efficient commercial building property (EECBP) qualified for a deduction. The company asserted it was entitled to a Sec. 179 deduction for the cost of installing EECBP in a Veterans Affairs (VA) hospital. In the absence of Congressional regulations, the court found that the […]