IRS disallows ERTC claims

The IRS recently mailed nearly 28,000 Employee Retention Tax Credit (ERTC) claim disallowance letters to businesses. The National Taxpayer Advocate, Erin Collins, has provided guidance to taxpayers whose ERTC claims were disallowed. Collins said that, “Unfortunately, a number of the notices were not clear or did not include information on the businesses’ appeal rights. Taxpayers […]

Take charge of working capital management

Proactive working capital management is essential to successful business operations. However, on average, businesses aren’t managing their working capital as efficiently as they have in the past, according to a new study by The Hackett Group, a digital transformation and AI strategy consulting firm. The study found that all elements of the cash conversion cycle […]

Refundable versus Nonrefundable tax credits

Most of us welcome tax credits. But do you know the difference between a nonrefundable tax credit and a refundable tax credit? A nonrefundable tax credit reduces your tax bill dollar for dollar, but not below zero. For example, suppose you have a tax liability of $9,000 and qualify for a nonrefundable tax credit of […]

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 and safe Labor Day!

Do you have to report bartering transactions to tax authorities?

Unused 529 plan funds can be rolled over

What do you do with leftovers? They may go to waste if you’re not careful. Suppose your leftovers are in the form of unused funds in a tax-advantaged Sec. 529 college savings plan for one of your kids or grandkids. When withdrawals aren’t used for qualified education expenses, the portion attributable to earnings generally will […]

Hearing held on proposed foreign trust regulations

On Aug. 21, 2024, the IRS and U.S. Treasury Dept. held a public hearing for taxpayers living abroad to provide input on proposed foreign trust regulations. Witnesses expressed the need for more clarity from the IRS on when offshore retirement plans must be reported as trusts (which generally don’t qualify for advantageous tax treatment). Also, […]

Federal court rejects FTC’s noncompete agreement ban

In April 2024, the Federal Trade Commission (FTC) approved a final rule prohibiting most noncompete agreements with employees. The ban was scheduled to take effect on September 4, 2024, but ran into multiple court challenges. Now the court in one of those cases has knocked down the rule, leaving its future uncertain. The FTC ban The FTC’s […]

Do you have a Business Tax Account?

Business tax account (BTA) is an IRS online portal for eligible business taxpayers. With enhancements made possible by funding from the Inflation Reduction Act, companies can use BTA to pay Federal Tax Deposits and make payments on their full balances due. Another recent change includes greater accessibility to BTA features in Spanish (with more language […]

Summer Camp expenses

If you sent your child to day camp this summer, you may be able to offset some of the costs by claiming the child and dependent care tax credit. To claim the credit, a taxpayer must have earned income. The credit is calculated based on income and a percentage of the expenses incurred for the […]