What is third-party representation?

If the IRS contacts you about a specific tax matter, you can authorize a third party to handle it on your behalf. It could be a relative, friend or a tax pro at our firm, as long as you grant formal permission. You can do this by assigning your power of attorney to a person […]

IRS warns on scam related to disasters

Americans are generous, especially when disasters strike. In the wake of the devastation caused by Hurricanes Milton and Helene, the IRS is cautioning taxpayers that this is a prime time for scammers to use fake charities to target the public. IRS Commissioner Danny Werfel warned that “Too often, criminals take advantage of would-be donors’ kindness […]

Understanding your obligations: Does your business need to report employee health coverage?

Employee health coverage is a significant part of many companies’ benefits packages. However, the administrative responsibilities that accompany offering health insurance can be complex. One crucial aspect is understanding the reporting requirements of federal agencies such as the IRS. Does your business have to comply, and if so, what must you do? Here are some […]

IRS updates on the processing of ERTC claims

What’s new with the IRS’s Employee Retention Tax Credit (ERTC) investigations? The agency has announced that it’s currently processing approximately 400,000 ERTC claims. This batch includes eligible and ineligible claims, with the eligible claims having an estimated value of $10 billion. Those filers deemed eligible can expect to receive refund checks in the mail in […]

Tax Gap estimate update provided by the IRS

The “tax gap” is the difference between what the IRS estimates as the U.S. tax liability and the amount of tax that’s actually paid on time. Recently, the IRS announced its tax gap estimate for tax year (TY) 2022 is $606 billion, less than the TY 2021 estimated gap of $617 billion. A majority of […]

Eyes on the income statement

When reviewing their income statements, business owners tend to focus on profits (or losses). But focusing solely on the bottom line can lead to mismanagement and missed opportunities. Instead, you should analyze this financial report from top to bottom for deeper insights. Think like an auditor Review your company’s income statement with an auditor’s mindset. […]

IRS grants disaster relief extension to May 2025

In the wake of Hurricanes Milton and Helene, the IRS is reassuring storm victims that it stands ready to provide tax-related assistance needed to help recover from these disasters. The IRS automatically gives taxpayers located in federally declared disaster areas additional time to file tax returns and pay taxes. Currently, taxpayers in the states of […]

Business presence and sales tax collections

SSA announces increase in maximum earnings for 2025

The Social Security Administration (SSA) has announced that for 2025 the maximum earnings subject to Social Security tax will increase $7,500, from $168,600 to $176,100. This is referred to as the “wage base.” In addition, the SSA announced that Social Security and Supplemental Security Income (SSI) benefits will increase by 2.5%. These changes reflect cost-of-living […]

Health Savings account contribution limits increase for 2025

Are you familiar with Health Savings Accounts (HSAs)? These are accounts that participants, their family members and employers can contribute to on a tax-advantaged basis. Such contributions are considered employer-provided coverage of medical costs and are therefore excludable from the employer’s income. The 2024 limit for employee and employer contributions combined is $4,150 for individual […]