IRS extends R&D Credit claim period

The IRS is extending the research credit’s transition claim period through Jan. 10, 2026. Taxpayers must provide significant documentation when submitting a claim for the research credit. (The credit is also called the research and development, R&D, or research and experimentation credit.) The IRS provides a 45-day transition period to taxpayers who fail to comply […]

Unlocking the mystery of taxes on employer-issued nonqualified stock options

Employee stock options remain a potentially valuable asset for employees who receive them. For example, many Silicon Valley millionaires got rich (or semi-rich) from exercising stock options when they worked for start-up companies or fast-growing enterprises. We’ll explain what you need to know about the federal income and employment tax rules for employer-issued nonqualified stock […]

Appreciated Stock?

If you own stock that has appreciated over time, selling it could result in capital gains taxes. However, if you’re charitably inclined and itemize deductions on your tax return, there’s a tax-savvy alternative. Consider donating publicly traded stocks that you’ve held for more than a year directly to an IRS-approved charity. That allows you to […]

Deducting the company Christmas party

Planning a holiday party for your employees? Keep tax deductions in mind. Most entertainment expenses currently aren’t deductible and you can generally deduct 50% of the cost of business meals. But under certain conditions, you can deduct 100% of party costs. The event must be for your entire staff and not be “lavish or extravagant.” […]

The amount you and your employees can save for retirement is going up slightly in 2025

How much can you and your employees contribute to your 401(k)s or other retirement plans next year? In Notice 2024-80, the IRS recently announced cost-of-living adjustments that apply to the dollar limitations for retirement plans, as well as other qualified plans, for 2025. With inflation easing, the amounts aren’t increasing as much as in recent […]

Senators suggest auditing more tax exempt hospitals

Senators Elizabeth Warren (D-MA) and Chuck Grassley (R-IA) have long expressed concerns about the tax-exempt status of nonprofit hospitals. The lawmakers recently sent a letter to the IRS reiterating earlier allegations that while nonprofit hospitals are required to provide a “community benefit,” some have restricted care and increased costs. To remedy the situation, the lawmakers […]

Get a jump start on tax season

Would you like to get a jumpstart on your 2024 federal tax return? You can create or access an IRS Online Account (https://bit.ly/4fpNBjW ) to review your historical tax records, request a personal identification number and view any new tax information. In addition, start gathering tax records, including relevant receipts and invoices. You’ll want to […]

Get a handle on how accounting and tax profitability metrics differ

The pretax (accounting) profit that’s reported on your company’s income statement is an important metric. Lenders, investors and other stakeholders rely on pretax profits to evaluate a company’s financial performance. However, business owners also need to keep their eyes on taxable income to optimize tax outcomes and manage cash flow effectively. Here’s an overview of […]

House passes bill to fight terrorism

The U.S. House of Representatives passed legislation that would give the Treasury Dept. authority to strip the tax-exempt status of nonprofit organizations it claims support terrorism. According to the Congressional Research Service, the Stop Terror-Financing and Tax Penalties on American Hostages Act would create a new category of “terrorist supporting organizations.” Any organization the Treasury […]

Should you help your employees save for college?