IRS shares new red flags on ERTC claims

To say that the Employee Retention Tax Credit (ERTC) has been troublesome for the IRS and some taxpayers is an understatement. Indeed, the IRS crackdown on ineligible ERTC claims came to light in July 2023, when the tax agency announced that it was shifting its ERTC review focus to compliance concerns. Now, the IRS has […]

IRS updates fact sheet on eligibility for clean vehicle tax credit

Under the Inflation Reduction Act, an eligible taxpayer can claim a tax credit of up to $7,500 for a new “clean vehicle.” There’s also a credit of up to $4,000 for a used clean vehicle. These are qualified plug-in electric vehicles and fuel cell vehicles. A vehicle must meet certain requirements, and there are income […]

Why auditors monitor journal entries

With a median loss of $766,000, financial misstatement schemes are the costliest type of fraud, according to “Occupational Fraud 2024: A Report to the Nations,” a study published by the Association of Certified Fraud Examiners. Fortunately, auditors and forensic accountants may be able to detect financial statement fraud by testing journal entries for errors and […]

Is it ordinary and necessary, and for profit?

Business owners can generally deduct on their tax returns the ordinary and necessary costs they incur. But they must be able to prove they’re engaged in legitimate businesses to make a profit. In one case, the U.S. Tax Court ruled a taxpayer wasn’t entitled to deduct business expenses associated with writing because she wasn’t engaged […]

State Sales Tax Breadth and Reliance, FY 2022

State Sales Tax Breadth and Reliance, FY 2022 https://bit.ly/46vK8w8

Tips are critical to employers finding fraud

Sales Tax Holidays by State, 2024

Sales Tax Holidays by State, 2024 https://bit.ly/4bY5zXB

Can Name, image and Likeness collectives obtain tax-exempt status?

In recent years, many name, image and likeness (NIL) collectives have sought tax-exempt status from the IRS. These collectives are formed for the benefit of college student-athletes and solicit and provide financial support from business “boosters.” Some of the entities may qualify as tax exempt if their mission and activities can be shown to primarily […]

Lifecycle analysis is an important part of this tax credit

The IRS has released guidance for companies that want to claim a tax credit for the sequestration of carbon oxide (a greenhouse gas emission). Although the credit has been available since 2008, the Inflation Reduction Act amended it. Notice 2024-60 (https://bit.ly/3zWt6uW ) explains what information taxpayers should include in written lifecycle analysis (LCA) reports submitted […]

Record maintenance is critical to success

When it comes to running a successful small business, there are numerous tasks owners must perform. One important job is to maintain tax and financial records. Granted, this can be overlooked in the day-to-day grind of running a business, but it’s vital when it comes time to prepare and file financial statements and tax returns. […]