Savings bonds and taxes: What you need to know

When considering the advantages of U.S. Treasury savings bonds, you may appreciate their relative safety, simplicity and government backing. However, like all interest-bearing investments, savings bonds come with tax implications that are important to understand. Deferred interest Series EE Bonds dated May 2005 and after earn a fixed rate of interest. Bonds purchased between May […]

When does my divorce count for income taxes?

As you likely know, marital status affects many federal tax filing requirements, including your standard deduction, credit eligibility and tax owed. However, you may not know that informally separated couples are considered married by the IRS. Unless you became divorced or legally separated by Dec. 31, 2024, you must file as married filing jointly or […]

Withholding Required

Employers are required to withhold federal tax from supplemental wages paid to employees. These include bonuses, commissions, reimbursements (so long as you don’t have an accountable plan), severance, cash prizes, retroactive raises and taxable fringe benefits. If you pay a supplemental wage of $1 million or less separately from regular wages, you must either 1) […]

Operating as a C corporation: Weigh the benefits and drawbacks

When deciding on the best structure for your business, one option to consider is a C corporation. This entity offers several advantages and disadvantages that may significantly affect your business operations and financial health. Here’s a detailed look at the pros and cons of operating as a C corporation. Tax implications A C corporation allows the […]

IRS announces pilot program on alternative dispute resolution

The IRS announced it has initiated pilot programs to make the alternative dispute resolution (ADR) process faster and easier. This process helps taxpayers who have unresolved issues with the IRS. It’s informal, confidential and voluntary. The pilot programs focus on Fast Track Settlement (FTS) and Post-Appeals Mediation (PAM). FTS is a program that allows the […]

Filing Season Opens

Tax filing season is set to begin on Jan. 27. Businesses must file wage statements and certain information returns with the federal government by Jan. 31. Filing the required forms error-free by the deadline not only helps payers and recipients avoid penalties but also helps the IRS fight fraud by making it easier to verify […]

Enhance financial reporting by forging a partnership between internal and external auditors

Many calendar-year entities are currently preparing for the start of audit fieldwork. One proactive way to facilitate your financial statement audit is to encourage teamwork between your internal audit department and external auditors. Consider the following four tips to foster a more collaborative relationship. 1. Reach out regularly By scheduling meetings between internal and external […]

California disaster relief announced

The IRS has announced tax relief for individuals and businesses in southern California affected by wildfires and straight-line winds, which began on Jan. 7, 2025. These taxpayers now have until Oct. 15, 2025, to file various federal individual and business tax returns and make tax payments. For example, individual returns due on April 15 can […]

Adoption tax credits: Easing the financial journey of parenthood

There are two tax breaks that help eligible parents offset the expenses of adopting a child. In 2025, adoptive parents may be able to claim a credit against their federal tax for up to $17,280 of “qualified adoption expenses” for each child. This is up from $16,810 in 2024. A tax credit is a dollar-for-dollar […]

The IRS’s secret history as prohibition enforcers