5 strategies to cut your company’s 2023 tax bill

As another year ends with interest rates and markets in flux, one thing remains certain: Reducing your company’s tax bill can improve your cash flow and your bottom line. Below are five strategies — including some tried-and-true and others particularly timely — that you can execute before the turn of the new year to minimize […]

There is still time to claim the Recovery Rebate Credit

You may be surprised to learn that there’s still time for certain individuals to claim the Recovery Rebate Credit. Specifically, eligible 2020 and 2021 nonfilers have until May 17, 2024, and April 15, 2025, respectively, to file a claim. The Recovery Rebate Credit is a refundable credit for individuals who missed out on one or […]

Opportunities to reduce the Tax Gap

Efforts to close the $496 billion “tax gap” continue to make news. The tax gap is defined as the difference between federal income tax owed and the amount timely paid. One of the largest segments of the gap (16% of the total) is underreporting by sole proprietors, according to a report by the Government Accountability […]

Key 2024 inflation-adjusted tax amounts for individuals

The IRS recently announced various 2024 inflation-adjusted federal tax amounts that affect individual taxpayers. Most of the federal income tax rate bracket thresholds are about 5.4% higher than for 2023. That means that you can generally have about 5.4% more income next year without owing more to the federal government. Standard deduction Here are the […]

QCDs can be used to satisfy IRA RMD requirements

Eligible IRA owners who are charitably inclined may be able to achieve two goals at once. Using a transfer known as a qualified charitable distribution (QCD), taxpayers who are at least 70½ can transfer up to $100,000 per year to a 501(c)(3) tax-free. Married couples where both spouses meet the age requirement and have IRAs […]

Tax relief for federally declared disaster areas

The IRS announced tax relief for dozens of federally declared disaster areas in 2023. If you live or work in one of those areas, you generally can deduct related losses on your 2023 return. As an alternative, you can deduct losses on the preceding year’s return. If you choose the latter option and have already […]

Key 2024 inflation-adjusted tax parameters for small businesses and their owners

The IRS recently announced various inflation-adjusted federal income tax amounts. Here’s a rundown of the amounts that are most likely to affect small businesses and their owners. Rates and brackets If you run your business as a sole proprietorship or pass-through business entity (LLC, partnership or S corporation), the business’s net ordinary income from operations […]

GAO report criticizes IRS

A recent Government Accountability Office (GAO) report criticizes some of the IRS’s handling of W-2 forms, 1099s and other information returns (IRs). The IRS uses IRs to verify taxpayers’ income and uncover fraud and noncompliance. The GAO report affirms that IRs are critical to ensuring correct tax payments. But it states that the IRS lacks […]

IRS updates ERC issues

Last September, the IRS issued a moratorium (currently through year end) on the processing of claims for the Employee Retention Tax Credit (ERTC), due to a high volume of fraudulent claims. IRS Commissioner Danny Werfel recently said the agency is continuing to develop processes to help taxpayers that may have fallen for deceptive marketing that […]

Overview of the offsetting rules

As companies explore hedging strategies in today’s uncertain economy, management might need to become familiar with the accounting rules for offsetting. Here are the basics, including what needs to be disclosed in your footnotes about these contractual arrangements. Right of setoff In general, it’s not proper to offset assets and liabilities in the balance sheet […]