Do you have a profit motive?

Taxpayers who are in business to make a profit can generally deduct related expenses on their tax returns. If the IRS doubts a genuine profit motive exists, the activity may be deemed a hobby, limiting the ability to deduct costs. In one case, partners operated a farm that bought, sold, bred and raced Standardbred horses. […]

Proposed Budget faces pressure

President Biden’s $6.9 trillion proposed budget faces fierce headwinds from Republicans. In a March 15 hearing, Republicans on the Senate Budget Committee said the proposals would result in more taxes, more debt, less opportunity and fewer resources for essential government services. The director of the Office of Management and Budget testified that the proposals would […]

Close-up on sources of substantive audit evidence

Organizations that understand how auditors verify account balances and transactions can minimize disruptions during audit fieldwork and maximize the effectiveness of financial statement audits. Here’s a summary of the types of “substantive evidence” auditors gather to help them form opinions regarding your financial statements. Original source documents Auditors can verify an account balance or record […]

Spotlight on executive compensation

Medicare enrollees could see lower costs on 27 Part B drugs in April – CNBC https://bit.ly/3LxmZAV

Renewable energy and efficiency related tax credits

The Inflation Reduction Act (IRA) features several renewable energy and efficiency-related tax credits that may benefit homeowners and businesses in 2023. These include extending the Energy Efficient Home Improvement Credit through 2032 and increasing the amount of the credit from 10% to 30% for installing qualified equipment. Similarly, the Residential Clean Energy Tax Credit has […]

Happy St. Patrick’s Day

“May your troubles be less, your blessings be more, and nothing but happiness come through your door.” Happy St. Patrick’s Day!

ERC Credit in the annual Green Book

The Treasury Department recently released its annual “Green Book,” which explains proposed items in President Biden’s 2024 budget. These include proposals involving the employee retention credit (ERC), which was enacted early in the pandemic to encourage employers to retain employees. The IRS has stated that some companies are filing returns for businesses claiming the ERC, […]

President Biden’s proposed budget includes notable tax provisions

President Biden has released his proposed budget for the federal government for the 2024 fiscal year. The budget, which aims to cut the deficit by nearly $3 trillion over 10 years, includes numerous provisions that would affect the tax bills of both individuals and businesses. While most of these proposals stand little chance of enactment with a Republican […]

IRS to increase focus on transfer pricing

As part of the IRS’s hiring initiatives, increased staff will focus on transfer pricing noncompliance issues. The tax agency will do this by using sophisticated data analytics, according to Jennifer Best, deputy commissioner of the IRS’s Large Business and International (LB&I) Division. These actions are intended to support the U.S. government’s ongoing efforts to curtail […]