Clarification on the census tract requirement

A recent IRS notice clarifies the “census tract requirement” to quality for the alternative fuel vehicle refueling property credit. Eligible tracts must be in low-income areas in the United States or U.S. territories, based on Community Development Financial Institutions Fund data. Also eligible are tracts in nonurban areas. To identify nonurban areas, the IRS plans […]

Solid financial reporting can help attract debt and equity financing

Financial reporting plays a key role when a business needs funds for continued operations and strategic investment opportunities. Lenders and investors will generally want to review your company’s financial statements before they give it money. Timely, reliable reports can increase the odds that a bank will approve your company’s loan application and equity investors will […]

The Tax Relief for American Families and Workers Ac

The Tax Relief for American Families and Workers Act, which was approved by the U.S. House Ways and Means Committee, makes changes to the current tax treatment of research and development (R&D) expenditures. Right now, a business must amortize such costs after Dec. 31, 2021, over a five-year period. Previously, they could be deducted in […]

Clean Energy Credits have two delivery methods

The Inflation Reduction Act created two new tax credit delivery mechanisms, elective pay (otherwise known as direct pay) and transferability. These enable state and local governments, nonprofits and other entities to claim clean energy tax credits. Using the IRS’s Energy Credits Online (ECO) tool, more than 1,000 projects have been registered. To facilitate receiving a […]

Not all legal damages awards are taxable

The Child Tax Credit

If Democratic members on the House Ways and Means Committee had their way, enhancements to the Child Tax Credit (CTC) in the proposed Tax Relief for American Families and Workers Act would have been more expansive. In its current form, the bill increases the maximum “refundable” CTC (the amount you can get as a refund […]

Collection Due Process hearings

Taxpayers that owe more taxes than they can currently pay may request a Collection Due Process (CDP) hearing if they follow the rules. Possible assistance may include an installment plan, penalty relief and innocent spouse relief. One taxpayer was granted a CDP hearing on his 2022 tax return but was denied an installment plan and […]

House Ways and Means pushes bill with tax relief goals

The U.S. House Ways and Means Committee is continuing to move forward a wide-ranging tax package. The proposed Tax Relief for American Families and Workers Act extends some expired tax breaks for businesses and contains enhancements to the Child Tax Credit. It also has a provision that would reduce paperwork for some businesses. Currently, businesses […]

The IRS unveils ERTC relief program for employers

Since July 2023, the IRS has taken a series of actions in response to what it has termed a “flood of ineligible claims” for the Employee Retention Tax Credit (ERTC). Most recently, it launched a Voluntary Disclosure Program (VDP). The program presents a valuable, but temporary, opportunity for eligible employers. Flood of invalid ERTC claims The […]

Taxpayer Bill of Rights

As the 2024 tax season approaches, taxpayers should know they’re protected by a Taxpayer Bill of Rights. It provides the right to: 1) be informed, 2) quality service, 3) pay no more than the correct amount of tax, 4) challenge the IRS’s position and be heard, 5) appeal an IRS decision in an independent forum, […]