IRS issues guidance on donor-advised funds

Earlier this month, the IRS issued long-awaited guidance on donor-advised funds (DAFs). As proposed regulations define them, DAFs are accounts maintained by “sponsoring organizations” and funded by charitable donors who retain advisory privileges regarding distribution of their accounts’ holdings. Distributions made to individuals or for non-charitable purposes are taxable, but non-taxable distributions can be made […]

New regulations clarify when part time employees must be allowed in employer 401k plans

New IRS proposed reliance regulations clarify when employers must allow long-term, part-time (LTPT) employees to participate in their 401(k) plans. The SECURE and SECURE 2.0 Acts changed the length of service needed before LTPT workers can participate. Starting in 2025, they’re eligible to contribute to their employer’s retirement plans after working 500 hours during two […]

Don’t forget to empty out your flexible spending account

If you have a tax-saving flexible spending account (FSA) with your employer to help pay for health or dependent care expenses, there’s an important date coming up. You may have to use the money in the account by year-end or you’ll lose it (unless your employer has a grace period). As the end of 2023 […]

IRS clamps down on using OSHA guidance to claim ERTC

The problem of fraudulent Employee Retention Tax Credit (ERTC) claims has been well documented. Indeed, the IRS issued a moratorium (currently through year end) on the processing of ERTC claims, due to a high volume of fraud. In a recent memo (AM 2023-007), the IRS is tamping down on a tactic used by claimants to […]

House Democrat urge release of information on IRS investigation of Puerto Rico tax abuse

A group of U.S. House Democrats is urging the IRS to provide an update on the agency’s investigation of tax incentive abuses designed to lure investors to Puerto Rico and spark economic growth. The schemes involve high-net-worth individuals reaping the benefits of Puerto Rico’s Act 22. This law exempts new Puerto Rican residents from federal […]

There still may be time to reduce your small business 2023 tax bill

In the midst of holiday parties and shopping for gifts, don’t forget to consider steps to cut the 2023 tax liability for your business. You still have time to take advantage of a few opportunities. Time deductions and income If your business operates on a cash basis, you can significantly affect your amount of taxable […]

The Saver’s Credit

Are you familiar with the Saver’s Credit? It’s a special credit that helps offset part of the first $2,000 that low- and moderate-income workers contribute to IRAs, 401(k)s or similar workplace retirement plans. The maximum credit is $1,000 ($2,000 for married couples). It can increase a taxpayer’s refund or reduce the tax owed. Eligible taxpayers […]

Using QuickBooks to prepare 2024 budgets and forecasts

As year end nears, many businesses and nonprofits are planning for 2024. QuickBooks® provides budget and forecast features to help management make financial predictions, as well as assess “what if” scenarios to help make more-informed business decisions. Here’s how you can use these tools for your year-end financial planning. Budgets vs. forecasts The budget function […]

3 key data inputs for a brand audit

Collection Due Process

Taxpayers who owe more taxes than they can currently pay can request a Collection Due Process (CDP) hearing, but they must follow the rules. One taxpayer received a deficiency notice for failing to report $387,000 of income, some of which represented premature retirement plan distributions before she was 59½. After ignoring the deficiency notices, she […]