HSA Changes are in the pending Tax Bill

The fate of The One, Big, Beautiful Bill is still pending. If enacted, it would introduce several health care changes, including increased flexibility for Health Savings Accounts (HSAs). These accounts are used in conjunction with a high-deductible health plan. Under current rules, HSAs can’t be used for fitness expenses, but the bill would permit spending […]

Corporate business owners: Is your salary reasonable in the eyes of the IRS?

Determining “reasonable compensation” is a critical issue for owners of C corporations and S corporations. If the IRS believes an owner’s compensation is unreasonably high or low, it may disallow certain deductions or reclassify payments, potentially leading to penalties, back taxes and interest. But by proactively following certain steps, owners can help ensure their compensation is seen […]

Receive a tax notice?

If the IRS has a question about your tax return, hasn’t received a payment due or has made adjustments to something you’ve filed, it will notify you with a letter or notice sent via the USPS. The letter will provide instructions on how to respond, which might include sending copies of records the IRS requires. […]

How much will deficit rise under proposed tax bill?

Many economic analysts forecast that the U.S. House’s One, Big, Beautiful Bill would increase federal debt, but there’s disagreement over the amount. The Congressional Budget Office has projected that the bill would result in a $2.3 trillion deficit over 10 years. However, the Penn Wharton Budget Model (PWBM) puts the figure at $2.8 trillion, and […]

The “wash sale” rule: Don’t let losses circle the drain

Stock, mutual fund and ETF prices have bounced around lately. If you make what turns out to be an ill-fated investment in a taxable brokerage firm account, the good news is that you may be able to harvest a tax-saving capital loss by selling the loser security. However, for federal income tax purposes, the wash […]

IRS publishes annual data book

The IRS has published its annual Data Book for fiscal year (FY) 2024. It provides a statistical overview of the tax agency’s operations. A few highlights: In FY 2024, for the first time, revenue collected exceeded $5 trillion ($5.1 trillion), an increase of almost 9% compared to FY 2023’s total of $4.7 trillion. Note: Revenues […]

Tariff plan faces setback in Court

President Trump’s trade war has suffered a major setback. The U.S. Court of International Trade ruled that the Trump administration overstepped its authority by invoking the International Emergency Economic Powers Act to impose tariffs on imports from U.S. trading partners. The court ordered a halt to most of Trump’s tariffs and further barred future modifications. […]

Back to basics: A practical playbook for reporting PPE

Under U.S. Generally Accepted Accounting Principles (GAAP), property, plant and equipment (PPE) assets aren’t immediately expensed. Instead, they’re capitalized on your company’s balance sheet and gradually depreciated over their useful lives. While that sounds easy enough, subtle nuances may trip up small businesses. Here are some tips to help get it right. Capitalize the full […]

The difference between a fradulent return and a abusive return

What’s the difference between a fraudulent tax return and one that’s “potentially abusive”? The IRS states that the latter is a return that a taxpayer is required to file, which isn’t fraudulent but may contain inaccuracies that could lead to understated income or overstated credits. A fraudulent return is one in which a person attempts […]

“Big Beautiful Bill” House GOP Tax Plan: Preliminary Details and Analysis

“Big Beautiful Bill” House GOP Tax Plan: Preliminary Details and Analysis https://bit.ly/4dYh58k