IRS Commissioner reminds tax professionals of possible changes coming

In a recent speech, IRS Commissioner Daniel Werfel suggested that tax professionals may need to stay on their toes during the 2024 tax season. If the Tax Relief for American Families and Workers Act of 2024 passes soon, new rules for the Child Tax Credit could go into effect starting with the 2023 tax year. […]

An update on the global minimum tax

The Organization for Economic Co-operation and Development (OECD) has issued an assessment of the effects thus far of the 15% global minimum tax (GMT). The report says that the GMT levied on large multinational enterprises (MNEs) under Pillar Two of the OECD framework has disincentivized the practice of profit shifting as intended. The GMT is […]

Inventory management systems: What’s right for your business?

If your business has significant inventory on its balance sheet, it can be costly. The carrying costs of inventory include warehousing, salaries, insurance, taxes, and transportation, as well as depreciation and shrinkage. Plus, tying up working capital in inventory detracts from other strategic investment opportunities. Reducing these costs can help improve a company’s profits and […]

IRS launches outreach program for Earned Income tax credit

The IRS has launched an outreach campaign designed to help low- to moderate-income taxpayers learn about the earned income tax credit (EITC). The IRS estimates that about one in five EITC-eligible taxpayers don’t claim it. To qualify for the credit, an individual must be employed, file a tax return and have a valid Social Security […]

This costly withholding mistake is ‘always a surprise,’ tax pro says

This costly withholding mistake is ‘always a surprise,’ tax pro says – CNBC https://bit.ly/3UvVI6o

Be aware of IRS audit red flags

The Secure Act changes part time employee participation in 401ks come 2025

The SECURE Act made several notable changes to 401(k) plan eligibility. Currently, employers can require part-time employees to work three years or three consecutive 12-month periods of at least 500 hours of service each before the workers become eligible to contribute. But beginning Jan. 1, 2025, only two years of service will be required. To […]

One week into tax season – let the filings begin

This year’s tax season is open! On Jan. 29, the IRS started accepting and processing federal tax returns. The regular filing deadline is April 15, but taxpayers can apply for an extension to file by Oct. 15 by submitting Form 4868. Understand that an extension to file isn’t an extension to pay. To help avoid […]

Are you buying a home with someone you aren’t married to?

Are you buying a home with someone you aren’t married to? If so, the IRS says that you may each be entitled to deduct half of the cost of the mortgage interest and real property tax you paid. This is true even if only one of you receives a Form 1098, Mortgage Interest Statement, from […]

Update on IRS efforts to combat questionable Employee Retention Tax Credit claims

The Employee Retention Tax Credit (ERTC) was introduced back when COVID-19 temporarily closed many businesses. The credit provided cash that helped enable struggling businesses to retain employees. Even though the ERTC expired for most employers at the end of the third quarter of 2021, it could still be claimed on amended returns after that. According […]