AMT guidance needed

Immediate guidance is needed regarding the financial reporting requirements of the new corporate alternative minimum tax (AMT) provisions mandated by the Inflation Reduction Act. That is what the American Institute of Certified Public Accountants (AICPA) told the IRS and Treasury officials in a letter. “Companies focused on financial statement reporting will face a challenge unless […]

TIGTA sees serious challenges for the IRS in 2023

The Treasury Inspector General for Tax Administration (TIGTA) foresees serious challenges for the IRS in 2023. In a memo to Treasury Secretary Janet Yellen, Inspector General J. Russell George emphasized the effect the Inflation Reduction Act will have on the IRS. The law includes $80 billion in agency funding and numerous tax provisions. “It will […]

2023 Inflation adjustments

Among the 2023 inflation adjustments just issued by the IRS are several that affect many higher-income taxpayers, including changes to the Alternative Minimum Tax (AMT). The AMT exemption amount is increasing to $81,300 for 2023 for unmarried individuals and begins to phase out at $578,150. The AMT exemption for joint filers will be $126,500 and […]

Providing fringe benefits to employees with no tax strings attached

Businesses can provide benefits to employees that don’t cost them much or anything at all. However, in some cases, employees may have to pay tax on the value of these benefits. Here are examples of two types of benefits which employees generally can exclude from income: A no-additional-cost benefit. This involves a service provided to […]

2023 brackets released

The IRS has just released its 2023 inflation adjustments for many tax provisions. The standard deduction will increase: $900 to $13,850 for single taxpayers; $1,800 to $27,700 for married couples filing jointly; and $1,400 to $20,800 for heads of household. The top tax rate for individuals with income greater than $578,125 ($693,750 for married couples […]

IRS set to increase overview

The IRS is poised to use some of its $80 billion appropriation from the Inflation Reduction Act to increase scrutiny on multinational companies’ transfer pricing activities, according to one tax professional. The expectation is that new enforcement agents and technological investments will focus some attention on large corporations with international operations to curb tax avoidance […]

Plan now to make tax-smart year-end gifts to loved ones

Are you feeling generous at year end? Taxpayers can transfer substantial amounts free of gift taxes to their children or other recipients each year through the proper use of the annual exclusion. The exclusion amount is adjusted for inflation annually, and for 2022, the amount is $16,000. The exclusion covers gifts that an individual makes […]

Nanny Tax

The Social Security Administration (SSA) has announced that the so called “nanny tax” threshold will increase by $200 in 2023. Cash paid by an employer for domestic services in the employer’s private home aren’t considered FICA wages in 2023 if the amount paid during the year is less than $2,600 (up from $2,400 in 2022). […]

Settlement Announced

The U.S. Treasury Department’s financial intelligence and money laundering watchdogs announced settlements reached with a virtual currency exchange platform for violations and failure to monitor potential illegal activity. The platform agreed to pay more than $29 million to the Financial Crimes Enforcement Network. Over $24 million of that payment will be credited towards the company’s […]

Ratio analysis: Extracting actionable data from your financials

What do you do with your financial statements when your auditor delivers them? Resist the temptation to just file them away — they’re more than an exercise in compliance. With a little finagling, you can calculate key financial ratios from line items in your company’s financial statements. These metrics provide insight into historical trends, potential […]