Changes in Interest Expense deduction limits

Before 2022, businesses could deduct 30% of their earnings before interest, tax, depreciation, and amortization (EBITDA). Currently, they’re required to calculate their interest expense deductions based on the more stringent earnings before interest and taxes (EBIT) standard. Businesses affected by the change are estimated to see, on average, close to a threefold increase in their […]

Overview of discontinued operations reporting

Traditional business models in many sectors have been disrupted by the COVID-19 pandemic, geopolitical uncertainty, rising costs and falling consumer confidence. If your company is planning a major strategic shift this year, management may need to comply with the updated accounting rules for reporting discontinued operations that went into effect in 2015. Discontinued operations typically […]

Tax credits for Home Energy Improvements

Have you taken steps to make your home more energy efficient, such as installing energy efficient windows or doors or adding solar panels? If so, you may qualify for the Energy Efficient Home Improvement Credit or the Residential Clean Energy Credit. The former applies only for improvements to an existing home. The amount of the […]

Standard Deduction or Itemize?

As you consider 2023 tax planning, should you claim the standard deduction or itemize deductions? This year, the standard deduction is $27,700 for married joint filers, $20,800 for head of household filers and $13,850 for single filers. Not everyone can use the standard deduction, including married couples who file separately, business owners filing for a […]

Take your child to work … all summer

Red Tape Reduction Act Introduced

Two U.S. Senators seek a bipartisan fix to a widely criticized process. Senators Sherrod Brown (D-OH) and Bill Cassidy (R-LA) introduced the Red Tape Reduction Act to increase the threshold for issuing 1099-K forms for third-party payment transactions. Changes to the process have lowered the threshold that determines when a 1099-K form must be issued […]

$1.5 billion of unclaimed tax refunds are about to expire

$1.5 billion of unclaimed tax refunds are about to expire – WNCT https://bit.ly/3OLFUcO

Employee or Independent Contractor?

Employers that don’t properly classify workers as employees or independent contractors risk legal trouble. A recent U.S. Tax Court decision found an LLC liable for unpaid employment taxes and penalties. The IRS had determined that the medical practice improperly classified workers as independent contractors over a period of several years and wasn’t entitled to Section […]

It’s important to have a household emergency preparedness plan

Hurricanes, wildfires and other disasters are all possible this summer. So it’s important to have a household emergency preparedness plan. The IRS is directing people to the U.S. Dept. of Homeland Security’s site (www.ready.gov), which features recommendations and checklists. For example, store backup copies of bank statements, tax returns and insurance policies in the cloud […]

IRS vows to address racial disparities in audits

IRS Commissioner Daniel Werfel has vowed to address racial disparities in IRS audits. He acknowledged that the IRS’s current algorithmic protocols for audit selection can lead to minorities, especially Black taxpayers claiming the earned income tax credit, being chosen disproportionately for audits. Werfel said that “we are dedicating significant resources to quickly evaluating the extent […]