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 […]

Report on Tariffs effect on economic growth

President Trump’s tariffs will take a toll on economic growth, according to a new report (https://bit.ly/4dPqpuY ) from the international Organization for Economic Co-operation and Development (OECD). The group estimates that GDP growth in the U.S. will weaken from 2.8% in 2024 to 1.6% in 2025 and 1.5% in 2026. Global growth could decrease from […]

Still have tax questions? You’re not alone

Even after your 2024 federal return is submitted, a few nagging questions often remain. Below are quick answers to five of the most common questions we hear each spring. 1. When will my refund show up? Use the IRS’s “Where’s My Refund?” tracker at IRS.gov. Have these three details ready: Social Security number, Filing status, and […]

Corporate AMT guidance

The corporate alternative minimum tax (CAMT) currently imposes a 15% minimum tax on the adjusted financial statement income (AFSI) of applicable large corporations. CAMT generally applies to large corporations with average annual financial statement income exceeding $1 billion. The IRS has issued interim guidance (Notice 2025-27) aimed at simplifying CAMT calculations, following feedback that pending […]

Proposed enhancment of The Employer-Provided Child Care Credit

One tax-related provision of the proposed One, Big, Beautiful Bill Act (OBBBA) that has slid under the radar is an enhancement of the Employer-Provided Child Care Credit. Currently, tax law provides eligible businesses a nonrefundable, annual tax credit of $150,000 on up to 25% of qualified child care expenses and 10% of qualified resource and […]

Can you turn business losses into tax relief?

Even well-run companies experience down years. The federal tax code may allow a bright strategy to lighten the impact. Certain losses, within limits, may be used to reduce taxable income in later years. Who qualifies? The net operating loss (NOL) deduction levels the playing field between businesses with steady income and those with income that […]

Tax tips before heading to the beach

Summer is in sight, and the April tax season is in the rearview mirror. But a few simple tax planning steps during the year can take the headache out of filing your next tax return. You might even end up with a better refund or lower tax bill. Before heading to the beach, take a […]

HSA Changes are in the pending Tax Bill

The fate of The One, Big, Beautiful Bill is still pending. If enacted, it would introduce several health care changes, including increased flexibility for Health Savings Accounts (HSAs). These accounts are used in conjunction with a high-deductible health plan. Under current rules, HSAs can’t be used for fitness expenses, but the bill would permit spending […]

Corporate business owners: Is your salary reasonable in the eyes of the IRS?

Determining “reasonable compensation” is a critical issue for owners of C corporations and S corporations. If the IRS believes an owner’s compensation is unreasonably high or low, it may disallow certain deductions or reclassify payments, potentially leading to penalties, back taxes and interest. But by proactively following certain steps, owners can help ensure their compensation is seen […]