The top line of an income statement for a for-profit business is revenue (or sales). Reporting this line item correctly is critical to producing accurate financial statements. Under U.S. Generally Accepted Accounting Principles (GAAP), revenue is recognized when it’s earned. With accrual-basis accounting, that typically happens when goods or services are delivered to the customer, […]
Read More Auditing revenue recognitionIn one recent federal court case, a nonresident alien taxpayer claimed deductions from taxable income for multiple personal exemptions. The IRS denied them. The taxpayer argued in court that the Tax Cuts and Jobs Act had made everyone other than nonresident aliens ineligible for several personal exemptions. Not surprisingly, the court disagreed with this interpretation […]
Read More What’s happening in the courts?Are you one of millions of Americans who participate in the gig economy? If so, the IRS considers you an independent contractor. Essentially, you’re a solo business owner, which ushers in a unique set of tax rules and obligations. A recent post in the National Tax Advocate blog examines some of the essential tax issues […]
Read More Introduction to Tax Forms for Gig Economy WorkersDeduction distinction: The difference between “repairs” and “improvements”
Read More Deduction distinction: The difference between “repairs” and “improvements”Earlier this year, the IRS launched a voluntary disclosure program involving the Employee Retention Tax Credit (ERTC). It allows eligible businesses to pay back money they received after filing ERTC claims in error. The disclosure program runs through March 22, 2024, and allows employers to repay 80% of the money received. With the deadline to […]
Read More Deadline to return ERTC funds fast approachingDonating a car to your favorite charity helps the organization and may give you a nice tax deduction. But you must itemize deductions and follow the rules. For a car worth at least $250 but not more than $500, you need a written acknowledgment letter from the charity with certain details. You must have this […]
Read More What do I do if I donate a car to charity?Did you bet money on the Super Bowl? If so, you aren’t alone. The American Gaming Association estimated that a record $23.1 billion would be wagered on Super Bowl 58. If you won, congratulations! Not to rain on your parade, but Uncle Sam generally wants his share. The rules apply even to “casual gamblers” who […]
Read More Did you Gamble and win?To help you make sure you don’t miss any important 2024 deadlines, we’ve provided this summary of when various tax-related forms, payments and other actions are due. Please review the calendar and let us know if you have any questions about the deadlines or would like assistance in meeting them. © 2024
Read More 2024 tax calendarThe IRS is beginning phase two of its Pre-Examination Retirement Plan Compliance Program. The overall project is intended to reduce taxpayer burden, minimize IRS time spent auditing plans and encourage plan sponsors to self-correct. Sponsors currently chosen for participation will receive a letter urging them to review their plan documents and operations for tax law […]
Read More Phase 2 of the IRS Pre-Examination Retirement Plan Compliance ProgramIf you’re in the market for an electric vehicle and hope to qualify for the new or used clean vehicle tax credit, take note: Deadlines for submitting seller reports to the IRS have been extended. Your seller is required to submit a report to the IRS Energy Credits portal by a specified deadline and provide […]
Read More The new or used clean vehicle tax credit
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