There is still time to make tax deductible purchases

Business owners still have a small handful of shopping days left to buy tax-deductible supplies. As you know, you can generally write off the ordinary and necessary costs of carrying on a trade or business. You may need items such as paper, envelopes, printer ink cartridges, staplers, breakroom supplies, binders, office chairs and more. Buy […]

IRS announces penalty relief

The IRS has announced penalty relief for nearly 4.7 million individuals, businesses and tax-exempt organizations that weren’t sent automated tax collection reminder notices during the pandemic. It involves about $1 billion in penalty relief. The IRS suspended automated reminders to pay overdue 2020 and 2021 tax bills starting in Feb. 2022. Although reminder notices were […]

Accelerate or delay? That’s the question

Businesses typically want to delay taxable income into future years and accelerate deductions into the current year. But in some cases, they want to do the opposite. One reason might be tax law changes that may raise future tax rates. Another reason may be because you expect your business to pay taxes at higher rates […]

RMDs are due by December 31

The IRS is reminding certain people, age 73 and up, to take required minimum distributions (RMDs) by Dec. 31, to avoid penalties. RMDs are the amounts that many retirement plan and IRA owners must withdraw each year, from accounts including SIMPLE IRAs and SEPs (but not Roth IRAs during the owners’ lifetimes). RMDs are taxable […]

AICPA asks IRS for easier extensions in disaster areas

The American Institute of Certified Public Accountants (AICPA) has asked the IRS to make it easier for taxpayers in federally declared disaster areas to request filing extensions. In a Dec. 11, 2023, letter, the AICPA suggested the IRS acknowledge receipt of extension requests within 30 days and make decisions about the requests within 90 days. […]

IRS releases safe harbor for 1099 penalties

Taxpayers who are required to file information returns and furnish payee statements, but fail to do so, can get slapped with a penalty. However, the IRS just released final regulations about a safe harbor option. If taxpayers file these returns and furnish these statements on time and they contain only “de minimis” (minor) errors, the […]

4th Quarter estimate payment is due soon

As 2023 winds down, the IRS is reminding taxpayers who didn’t pay enough tax during the year to help avoid penalties by making a 4th quarter estimated tax payment by Jan. 16, 2024. Those who may need to make estimated payments include investors, gig workers and others with self-employment income. Also, it’s common for those […]

The Trust Fund Recovery Penalty is a 100% penalty

Employers that withhold taxes from employee wages but don’t pay them over to the IRS may face a penalty of 100% of the unpaid tax. The Trust Fund Recovery Penalty (TFRP) can be assessed personally against “responsible” parties. In one case, a Maryland man owned two restaurants and a property management company. For 26 months, […]

Merry Christmas

May the Christmas season bring only happiness and joy to you and your family.Merry Christmas

IRS issues proposed regulations on the Advanced Manufacturing Production Credit

The Inflation Reduction Act introduced the IRC Section 45X Advanced Manufacturing Production Credit in 2022. The credit is available to manufacturers that produce clean energy components in the United States, including solar and wind energy components, inverters, qualifying battery components, and applicable critical minerals. The IRS has issued proposed regulations that, among other things, provide […]