Navigating the percentage-of-completion method

Does your business work on projects that take longer than a year to complete? Recognizing revenue from long-term projects usually requires use of the “percentage-of-completion” method. Here’s an overview of when it’s required and how it works. Completed contract vs. percentage-of-completion Homebuilders, developers, creative agencies, engineering firms and others who perform work on long-term contracts […]

IRS error results in notices

The IRS is alerting employee benefit plan sponsors that they might erroneously receive penalty notices for late or incomplete filing. This is due to a programming problem that the tax agency has since repaired. So long as plan sponsors filed a 2022 Form 8955-SSA in full and on time, they can ignore CP 283-C notices […]

Turn your hobby into an actual business

FAQs released on Schedules K-2 & K-3

In late 2021, the IRS released new tax forms that should be added to the tax returns of pass-through entities to report certain international income, deductions and credits. The IRS’s goal with Part II of Schedules K-2 and K-3 was to provide more transparency to how pass-through entities calculate their U.S. income tax liability from […]

National Preparedness Month

If you didn’t know, September is National Preparedness Month. The IRS is reminding taxpayers to develop an emergency preparedness plan or, if they already have one, to update it for 2023. In light of several extreme weather events this year and the arrival of peak hurricane season, it’s advice worth taking. Key steps to take […]

Where Do People Pay the Most in Property Taxes?

Where Do People Pay the Most in Property Taxes? https://bit.ly/44YqbeW

Do you qualify for a clean vehicle tax credit?

The IRS has updated the rules to qualify for a clean vehicle (CV) tax credit. Before you buy, be sure the vehicle was made by a qualified manufacturer and meets other conditions. Manufacturers must have an approved agreement with the IRS whereby they supply valid vehicle ID numbers of qualifying vehicles, which can be matched […]

Estimate payments due

Mark your calendars for this important date, Sept. 15, if you must make quarterly estimated tax payments. That’s the due date for the third estimated tax payment for 2023. Who must pay estimated tax? Generally, those who have taxable income that isn’t subject to withholding must make payments if they expect to owe tax of […]

IRS issues guidance on new retirement catch-up contribution rules

In December 2022, President Biden signed the Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act. Among other things, the sweeping new law made some significant changes to so-called catch-up contributions, with implications for both employers and employees. With the new catch-up provisions scheduled to kick in after 2023, many retirement plan sponsors have been struggling […]

Enhanced Tax credits can be claimed by certain clean energy companies

As part of the Inflation Reduction Act (IRA), clean energy companies that satisfy certain prevailing wage and registered apprenticeship (PWA) requirements can claim enhanced tax credits and deductions. The IRS and U.S. Treasury Dept. have announced proposed guidance to help qualified businesses claim the tax benefits, including taxpayers that initially failed to satisfy the PWA […]