IRS audit rates

During his administration, former President Biden repeatedly promised higher IRS audit rates for wealthy, but not middle-income, taxpayers. Recently released IRS data suggests he kept his word. For tax returns filed in 2023 and audited in 2024, the audit rate was 0.8% for all taxpayers. But those making over $500,000 were audited at twice the […]

Hiring independent contractors? Make sure you’re doing it right

Many businesses turn to independent contractors to help manage costs, especially during times of staffing shortages and inflation. If you’re among them, ensuring these workers are properly classified for federal tax purposes is crucial. Misclassifying employees as independent contractors can result in expensive consequences if the IRS steps in and reclassifies them. It could lead […]

House Bill permanently increases Estate exemption threshold

The One, Big, Beautiful Bill, recently passed by the U.S. House, would provide wealthy families some certainty regarding their estates if it’s enacted. The current unified federal gift and estate tax exemption amount, adjusted annually for inflation, is set to expire after 2025. This year, it allows individuals to shelter $13.99 million from gift and […]

SALT limit a sticking point in the Senate

The U.S. House passed The One, Big, Beautiful Bill in May. Senate Republicans are currently debating their version of the tax and spending bill. With slim majorities in both the House and Senate, Republicans can’t afford to lose too many votes. So, what provisions of the bill are proving to be sticking points? One major […]

6 inventory management tips in an uncertain tariff landscape

With new tariff structures looming and global trade relationships in flux, businesses face rising uncertainty in supply chain costs and inventory planning. As countries iron out the details of future U.S. trade agreements, companies must proactively manage their inventory to avoid margin erosion and supply disruptions. Here are six smart strategies to help safeguard your […]

1099-K threshold changes in House Bill

While Congress continues to debate The One, Big, Beautiful Bill, one provision has gotten little attention. Generally, taxpayers who sell goods and services will receive a Form 1099-K (Payment Card and Third Party Network Transactions) from platforms they use. A previous law, the American Rescue Plan Act, significantly lowered the threshold that triggers issuance of […]

2025 State Tax Competitiveness Index

2025 State Tax Competitiveness Index https://bit.ly/418nLMt

Exit planning for small businesses

QBI would be made permanent in House Bill

Currently, eligible small business owners may be able to claim a tax deduction based on their qualified business income (QBI) and certain other income. The deduction can be for up to 20% of their QBI, subject to limits as income rises. Eligibility begins to phase out at $394,600 for married joint filers and $197,300 for […]

Data Book covers IRS 2024 Tax Collections

One of the topics covered in the IRS’s recently released 2024 Data Book (https://bit.ly/3Us8cvC ) is tax collection. During fiscal year (FY) 2024, the agency’s collections function recovered close to $77.6 billion, an increase of 13.6% over FY 2023. These collections generally represent federal taxes that’ve been reported or assessed but not paid (as well […]