IRS warns on ESOPs

The IRS is warning businesses to watch out for Employee Stock Ownership Plan (ESOP) compliance issues. ESOPs are complex arrangements that enable employees to purchase company stock. But they can also be abused, and some high-income individuals have been known to use them to hide earnings and evade taxes. The IRS says it has discovered […]

Nonprofit hospitals may incur additional oversight

A bipartisan group of U.S. senators is alleging that certain nonprofit hospitals may be acting in ways that aren’t in patients’ best interests. Tax-exempt hospitals are required to provide “community benefits,” but the lawmakers claim some hospitals are taking advantage of the term’s broad definition. One study found that 77% of nonprofit hospitals spent less […]

The IRS warns businesses about ERTC scams

The airwaves and internet are inundated these days with advertisements claiming that businesses are missing out on the lucrative Employee Retention Tax Credit (ERTC). While some employers do indeed remain eligible if they meet certain criteria, the IRS continues to caution businesses about third-party scams related to the credit. While there’s nothing wrong with claiming credits […]

Energy Tax Credits for your home

If you’ve been noticing your neighbors making energy related home improvements lately, such as installing solar panels on the roof, it may be thanks to the expanded home energy tax credits provided by the Inflation Reduction Act. You can claim either the Energy Efficient Home Improvement Credit or the Residential Clean Energy Credit for the […]

Disabled family members may be able to benefit from ABLE accounts

If you have family members with disabilities, there may be a tax-advantaged way to save for their needs — without having them lose eligibility for the government benefits to which they’re entitled. It can be done though an Achieving a Better Life Experience (ABLE) account, which is a tax-free account that can be used for […]

Do you qualify for innocent spouse relief?

Spouses who file joint federal tax returns generally are both liable for the tax owed. But joint filers may be eligible for innocent spouse relief. In a new case, the U.S. Tax Court ruled that a wife wasn’t entitled to relief related to foreign earned income exclusions reported on her joint tax return. The court […]

Planning ahead for 2024: Should your 401(k) help employees with emergencies?

The SECURE 2.0 law, which was enacted last year, contains wide-ranging changes to retirement plans. One provision in the law is that eligible employers will soon be able to provide more help to staff members facing emergencies. This will be done through what the law calls “pension-linked emergency savings accounts.” Effective for plan years beginning […]

Energy efficient credits

Certain contractors may qualify for a special tax credit when they build or substantially reconstruct qualified energy efficient homes. The expanded credit, now worth up to $5,000 per home, is part of the Inflation Reduction Act of 2022. The amount of the credit depends on the type of home, the home’s energy efficiency and the […]

5 steps to track vehicle mileage in QuickBooks

Your organization may need to track business miles to maximize its tax deductions, reimburse employees for personal vehicle use, and comply with IRS rules and regulations. Navigating this process can be administratively burdensome. Fortunately, QuickBooks® offers functionality that can make the process easier and more accurate. Here are five steps to streamline the bookkeeping requirements […]

Secure Act 2.0

Implementing the SECURE 2.0 Act, enacted last year, involves numerous administrative hurdles. In one provision, the law makes changes to catch-up contributions. That provision is set to begin in 2024. But as retirement plan sponsors prepare for the changes, they’re finding many problems. In a July 19 letter to the U.S. Treasury Dept. and the […]