Data Exposed

Tax-exempt organizations take note: Some of your tax data may have been publicly exposed. On Sept. 2, the IRS admitted it erroneously released some Form 990-T information via its Tax Exempt Organization Search (TEOS) tool. Form 990-T is used by not-for-profits to report income unrelated to their exempt purpose. Fortunately, the disclosed information didn’t include […]

Year-end tax planning ideas for your small business

Now that Labor Day has passed, it’s a good time to think about making moves that may help lower your small business taxes for this year and next. The standard year-end approach of deferring income and accelerating deductions to minimize taxes will likely produce the best results for most businesses, as will bunching deductible expenses […]

Offshore accounts and assets

The use of shell banks, along with limited tax law enforcement, has enabled tax evasion by wealthy individuals through offshore financial accounts and assets, according to a recent Senate Finance Committee report. Committee Chair Ron Wyden (D-OR) noted that the Foreign Account Tax Compliance Act (FATCA) is aimed at cracking down on tax evasion by […]

Failure to file penalty

The IRS recently provided relief from the failure-to-file penalty for taxpayers who missed the filing deadlines for certain 2019 and/or 2020 tax and information returns. The penalty is typically assessed at a rate of 5% per month and up to 25% of the unpaid tax when a federal income tax return is filed late. To […]

Is your income high enough to owe two extra taxes?

High-income taxpayers face two special taxes — a 3.8% net investment income tax (NIIT) and a 0.9% additional Medicare tax on wage and self-employment income. Here’s an overview of the taxes and what they may mean for you. 3.8% NIIT This tax applies, in addition to income tax, on your net investment income. The NIIT […]

Cryptocurrency regulation proposed

Bipartisan legislation to regulate cryptocurrencies has been submitted in the U.S. Senate. The Responsible Financial Innovation Act would set new tax rules for cryptocurrencies and shift much of their oversight to the Commodity Futures Trading Commission. The bill was submitted by Sen. Kirsten Gillibrand (D-NY) and Sen. Cynthia Lummis (R-WY). It would create a de […]

Estimated Taxes are Due

Sept. 15 is an important date to mark on your calendar if you must make quarterly estimated tax payments. That’s the due date for the third estimated tax payment for 2022. Who must pay estimated tax? Generally, those who have taxable income that isn’t subject to withholding must make payments if they expect to owe […]

Is your current bad debt allowance reasonable?

In today’s volatile market conditions, it’s important to review your accounts receivable ledger and consider writing off stale, uncollectible accounts. The methods that you’ve used in the past to evaluate bad debts may no longer make sense. Here’s how to keep your allowance up to date. Know the rules Under the accrual method of accounting, […]

Failure to Report Foreign Bank Account

In a recent court case, a taxpayer hit with an IRS penalty of $2,173,703 claimed that the penalty violated the excessive-fines clause of the U.S. Constitution. She’s now seeking help from the U.S. Supreme Court. The penalty involves her failure to file a required “Report of Foreign Bank and Financial Accounts” to timely disclose a […]

Remember 9/11

“Are you guys ready? Let’s roll.” –Todd Beamer, a passenger on United Airlines Flight 93. We remember……