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 […]

The annual gift tax exclusion

One of the most effective estate-tax-saving techniques is also one of the simplest: making use of the annual gift tax exclusion. It allows you to give to an unlimited number of family or friends cash or property valued up to a “specified” amount each year without owing gift tax. That “specified” amount is subject to […]

The 2024 standard deduction

The standard deduction is a specific dollar amount that reduces the amount of income on which you’re taxed. The Tax Cuts and Jobs Act (TCJA) nearly doubled the standard deduction for those who don’t itemize deductions. The amounts are indexed annually for inflation through 2025, after which they’re scheduled to drop back to the amounts […]

4 year-end tax moves for businesses

How High Are State and Local Tax Collections in Your State?

How High Are State and Local Tax Collections in Your State? https://bit.ly/3G9rTA3

Hiring? Your business may qualify for tax credits

Employers that are looking to hire new workers may be able to reduce their tax bills with a valuable one-time federal tax credit. The Work Opportunity Tax Credit (WOTC) encourages employers to hire from certain groups that face barriers to employment. The targeted groups include veterans, qualified recipients of certain aid programs, ex-felons, qualified long-term […]