Do you have Bad Debt on the books?

Now that the last quarter of 2024 is here, it’s a good time for accrual-basis businesses to clean up their books and possibly lower their taxes. Review your receivables to see if there are any bona fide business debts that have become uncollectible. If so, you may be able to take a bad debt tax […]

Is your home office a tax haven? Here are the rules for deductions

Working from home has become increasingly common. The U.S. Bureau of Labor Statistics (BLS) reports that about one out of five workers conducts business from home for pay. The numbers are even higher in certain occupational groups. About one in three people in management, professional and related occupations works from home. Your status matters If […]

New Guidance issued for 403(b) Plans

Many nonprofit organizations offer 403(b) retirement savings plans to their employees. The SECURE 2.0 Act made certain long-term, part-time workers eligible for participation in these tax-advantaged plans. However, the IRS hadn’t clearly explained which plans were affected by the rules, leading to some confusion. New guidance states that only 403(b) plans subject to Title 1 […]

Help ensure your partnership or LLC complies with tax law

When drafting partnership and LLC operating agreements, various tax issues must be addressed. This is also true of multi-member LLCs that are treated as partnerships for tax purposes. Here are some critical issues to include in your agreement so your business remains in compliance with federal tax law. Identify and describe guaranteed payments to partners […]

FEMA get help from the IRS

The IRS is pitching in to help the Federal Emergency Management Agency’s (FEMA’s) relief efforts in regions affected by Hurricane Helene. The agency has sent 500 customer service representatives to assist with FEMA phone lines and 16 Criminal Investigation agents to help with search and rescue operations and to protect FEMA workers and their equipment. […]

IRS offers disaster penalty relief on dyed diesel fuel

Dyed diesel fuel is the primary fuel used in heavy construction and farming equipment, as well as off-road vehicles. These machines and vehicles are being used to help storm victims recover from Hurricane Helene. The IRS is offering penalty relief to any person that sells or uses dyed diesel fuel for highway use. Specifically, the […]

Cutoffs: When to report revenue and expenses

Timing is critical in financial reporting. Under accrual-basis accounting, the end of the accounting period serves as a “cutoff” for when companies recognize revenue and expenses. However, some companies may be tempted to play timing games, especially at year end, to boost financial results or lower taxes. Observing the end-of-period cutoffs Under U.S. Generally Accepted […]

IRS announces plans to issue series of regulations related to clean energy tax provisions

The U.S. Dept. of Treasury and the IRS have announced plans to issue a series of final regulations related to certain clean energy tax provisions of the Inflation Reduction Act (IRA). The final regs will cover the Clean Electricity Production Credit (Sec. 45Y) and the Clean Electricity Investment Credit (Sec. 48E). The IRS issued proposed […]

Policies both Democrats and Republicans can agree on

Filing relief for Hurricane Helene victims

The IRS has announced disaster tax relief for individuals and businesses affected by Hurricane Helene. This covers the entire states of Alabama, Georgia, North Carolina and South Carolina, as well as parts of Florida, Tennessee and Virginia. In these areas, taxpayers now have until May 1, 2025, to file various federal individual and business tax […]