Tax evasion leads to prision

A man who owned several companies was sentenced in 2022 to 30 months in prison for tax evasion and employment tax crimes. According to the U.S. Dept. of Justice, he withheld more than $1 million in taxes from his employees’ wages but didn’t pay required taxes to the IRS. After serving about 12 months of […]

Divorcing business owners should pay attention to the tax consequences

If you’re getting a divorce, you know the process is generally filled with stress. But if you’re a business owner, tax issues can complicate matters even more. Your business ownership interest is one of your biggest personal assets and in many cases, your marital property will include all or part of it. Transferring property tax-free […]

Tax relief for Hawaii wildfires announced

Eligible victims of the wildfires in Hawaii, including on the island of Maui, now have additional time for certain tax-related tasks. Following a disaster declaration issued by the Federal Emergency Management Agency, the IRS granted tax relief to those affected by wildfires that began on Aug. 8. These victims now have until Feb. 15, 2024, […]

IRS issues final regulations and guidance for COVID credits

The IRS recently issued final regulations and guidance for COVID-19-related employment tax credits. Specifically, the regs provide that businesses that erroneously received additional refunds in excess of what they were entitled to may be assessed underpayment penalties. This involves the Employee Retention Tax Credit, the Qualified Paid Sick Leave Credit and the Qualified Paid Family […]

New report identifies high-risk areas in financial reporting

In July 2023, the Public Company Accounting Oversight Board (PCAOB) published a report that highlights common areas of audit deficiencies for public companies. Private companies face similar challenges when reporting their financial results. Internal accounting personnel and external auditors can use the PCAOB’s report to identify high-risk areas in financial reporting that may warrant additional […]

Child Care tax credit update

Child care tax credits could expand if a bipartisan bill passes. On July 17, U.S. House members Salud Carbajal (D-CA) and Lori Chavez-DeRemer (R-OR) introduced the Child Care Investment Act. “Skyrocketing costs have left affordable child care out of reach for too many families,” stated Chavez-DeRemer in a press release. If passed, the bill would […]

Happy Labor Day

“I’m a greater believer in luck, and I find the harder I work the more I have of it.” ― Thomas Jefferson Wishing you a Happy Labor Day!

How to build a fence around your assets

IRS asks for feedback on notices

These days, it seems as though every service provider wants customer feedback. The IRS is no different. As part of its 2023 Strategic Operating Plan, the agency is updating the notices and letters it sends taxpayers. It’s asking people who’ve recently received these communications to suggest changes that would make them easier to understand and […]

Cook County Illinois receives storm relief

Cook County, Ill. residents and businesses affected by severe storms and tornados that started March 31, 2023, now have until Oct. 31 to file most federal tax returns that were due on or after June 29. This relief includes extra time to make payments. In addition, taxpayers can claim disaster-related casualty losses on their 2022 […]