Bill Introduced to revoke tax-exempt status of large sports leagues

A bipartisan bill has been introduced in the U.S. House of Representatives that would revoke the tax-exempt status of certain sports leagues. The bill is aimed at the reported merger of the PGA and LIV Golf, a venture backed by Saudi Arabia. Introduced by Rep. Mike Thompson (D-CA) and Rep. Vern Buchanan (R-FL), the bill […]

Court awards and out-of-court settlements may (or may not) be taxed

Monetary awards and settlements are often provided for an array of reasons. For example, a person could receive compensatory and punitive damage payments for personal injury, discrimination or harassment. Some of this money is taxed by the federal government, and perhaps by state governments. Hopefully, you’ll never need to know how payments for personal injuries […]

GAO reports on Sole Proprietor Compliance

The IRS attributes approximately $80 billion in unpaid taxes to sole proprietors underreporting their incomes each year. That’s according to a recent Government Accountability Office (GAO) report. The $80 billion comprises 16% of the estimated annual $496 billion “tax gap.” It is generally defined as the difference between federal income tax owed and the amount […]

The standard business mileage rate went up slightly in 2024

The optional standard mileage rate used to calculate the deductible cost of operating an automobile for business went up by 1.5 cents per mile in 2024. The IRS recently announced that the cents-per-mile rate for the business use of a car, van, pickup or panel truck will be 67 cents (up from 65.5 cents for 2023). The […]

Is my Home Office deductible?

With so many people working from home, they may refer to their workspaces as “home offices.” But do those spaces qualify them for home office tax deductions? Indeed, there are specific requirements workspaces must meet to qualify for deductions. Employees currently don’t qualify for home office deductions if they’re required, or want, to work remotely. […]

IRS warns on Business Identity Theft

The IRS is warning businesses that they’re prime targets for identity theft. How do you know if your company’s identity has been stolen? According to the IRS, you should investigate if you receive a: 1) rejection notice for an electronically filed tax return because a return is already on file, 2) notice about a return […]

Tips for QuickBooks users: 5 mistakes to avoid during bank reconciliation

Reconciling bank accounts is critical to ensuring the accuracy of your company’s accounting records. The primary purpose of a bank reconciliation is to confirm that the transactions recorded in your bank statement match those shown in your accounting records. Generally, bank accounts should be reconciled at least monthly. However, conducting weekly or daily reconciliations for […]

Just Married?

Did you or someone you know get married in 2023? The IRS has provided a checklist to help newlyweds avoid mistakes that could cost them at tax time. How you file depends on your marital status on Dec. 31. The married-filing-jointly status is typically the most beneficial way for couples to file, but it’s a […]

Happy New Year

The last day of 2023 is 123-123, which means we’re literally waltzing into 2024. New is the year, new are the hopes, new is the resolution, new are the spirits, and new are my warm wishes just for you. Have a promising, fulfilling, and Happy New Year! Enjoy the dance.

Estate granted extension

In an IRS private letter ruling, an estate was granted a 120-day extension to make a portability election under the Internal Revenue Code. The extension allows the surviving spouse to take into account the decedent’s deceased spousal unused exclusion (DSUE) amount. An estate tax return wasn’t filed on time and a portability election wasn’t made. […]