How do auditors verify account balances and transactions?

Audit season is just around the corner for calendar-year entities. Understanding the types of source documents your audit team might request can minimize disruptions during audit fieldwork and maximize your audit’s effectiveness. Here are some common sources of “substantive evidence” that auditors gather to help them form an opinion regarding your financial statements. Original source […]

Tax avoidance or tax evasion?

Do you know the difference between tax avoidance and tax evasion? Tax avoidance is taking legitimate actions to reduce your tax bill, such as funding an IRA or appropriately claiming a tax credit. Tax evasion is a deliberate failure to comply with the tax law. It includes actions such as falsifying tax records, inflating expenses […]

Act fast if you want to expense equipment in 2024

Businesses must act fast if they plan to take the valuable Sec. 179 expense deduction this year. In 2024, you can expense up to $1.22 million in qualified assets. The deduction begins to phase out when 2024 qualified asset additions exceed $3.05 million. (In 2025, these limits rise to $1.25 million and $3.13 million, respectively.) […]

Tax breaks may help offset business holiday expenses

Reporting wage and tax information to employees and the IRS

Protect your identity with an IP PIN

The IRS’s IP PIN program, which is intended to help prevent tax identity theft, is being put to new use this coming tax season. In the past, the IRS rejected e-filed returns that claimed dependents already claimed on another return. The rejected returns were required to be refiled on paper. But in 2025, taxpayers can […]

Don’t forget your RMD

Time is running out if you’re age 73 or older and haven’t yet taken this year’s required minimum distributions (RMDs) from retirement plans such as IRAs and 401(k)s. If not withdrawn on time, RMDs are generally subject to a 25% excise tax on the amount the taxpayer should have withdrawn. If you reached age 73 […]

Federal court rules against DOL’s “white collar” overtime rule

A federal district court judge has struck down the Biden administration’s new rule regarding the salary threshold for determining whether certain employees are exempt from federal overtime pay requirements. The first phase of the rule took effect for most employers in July 2024 and affects executive, administrative and professional (EAP) employees. With a Republican administration […]

IRS-CI releases 2024 Annual Report

The IRS Criminal Investigation (IRS-CI) released its fiscal year 2024 Annual Report. It details significant cases involving crimes ranging from tax fraud to cybercrime, enhanced domestic and foreign partnerships, and investigative statistics. IRS-CI obtained 1,571 convictions with a conviction rate of 90%. Investigations identified $2.12 billion in tax fraud and another $7.03 billion from other […]

Injunction halts BOI reporting

Under the Corporate Transparency Act, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) requires small business owners to report certain information. The requirements are intended to help prevent criminals from using businesses for illicit activities. They mandate businesses to provide beneficial ownership information (BOI) about their owners to FinCEN. The deadline to file a BOI […]