Inflation enhances the 2025 amounts for Health Savings Accounts

The IRS recently released guidance providing the 2025 inflation-adjusted amounts for Health Savings Accounts (HSAs). These amounts are adjusted each year, based on inflation, and the adjustments are announced earlier in the year than other inflation-adjusted amounts, which allows employers to get ready for the next year. Fundamentals of HSAs An HSA is a trust […]

Basis Shifting

The IRS has issued guidance addressing the increasing instances of abusive basis shifting by related-party partnerships. Taxpayers are inappropriately using partnership rules to inflate the basis of underlying assets without affecting the economics of their businesses. The basis-shifting transactions targeted in Notice 2024-54 fall into three groups: 1) transfer of partnership interests to a related […]

Is it a hobby or a business?

Do you or someone you know have a side hustle? As a rising number of Americans earn side income, the IRS is reminding taxpayers that money earned this way is taxable. Depending on whether the IRS considers the activity to be a hobby or a business, the tax treatment is very different. Businesses can generally […]

IRS focus on high income compliance continues

The IRS is continuing its focus on compliance issues among some high-income earners, including partnerships. With funding from the Inflation Reduction Act (IRA), the agency is developing guidance designed to close loopholes used by some partnerships. Currently, the IRS is looking at tens of billions of dollars of deductions claimed by partnerships, with a focus […]

Historic Preservation Tax Incentives

One of the lesser-known tax breaks available to qualified businesses and individuals is the rehabilitation credit. If you own (or in some cases, lease) a historically important building and renovate it, you may be able to claim a 20% credit of eligible rehabilitation costs. Covered expenses include those for renovation, restoration and rehabilitation, but not […]

Why audited financials matter

Reliable financial reporting is key to any company’s success. Here’s why your business should at least consider investing in audited financial statements. Weighing the differences Most businesses maintain an in-house accounting system to manage their financials. The documents your staff prepares through your in-house accounting system are called “internally prepared financial statements.” In many cases, […]

New FTC rule aims to protect individuals from fraud

Recently, a new Federal Trade Commission (FTC) rule went into effect to better protect individuals from fraud, particularly impersonation scams. For example, the rule makes it easier for the FTC to file federal court cases to recover funds for victims and impose penalties on perpetrators. According to the FTC, consumer losses to fraudsters falsely claiming […]

IRS will deny most claims for Employee Retention Credit program

IRS will deny most claims for Employee Retention Credit program – The Washington Post https://bit.ly/3zdo4tx

This isn’t your newfangled calculator app

I.R.S. Extends Freeze of Pandemic-Era Tax Credit Amid Widespread Fraud

I.R.S. Extends Freeze of Pandemic-Era Tax Credit Amid Widespread Fraud – The New York Times https://bit.ly/3xiAEat