IRS provides guidance on amortization of research expenditures

Prior to 2022, companies could deduct qualified research and experimentation expenses immediately. Under the Tax Cuts and Jobs Act, such expenses are subject to a five-year amortization period (15 years for foreign research). New IRS guidance details how businesses should handle specified research or experimentation (SRE) expenditures for tax years ending after Sept. 8, 2023. […]

Do you have a foreign bank account?

Certain taxpayers must annually report their foreign financial accounts to the U.S. Treasury by filing a Report of Foreign Bank and Financial Accounts (FBAR) on Financial Crimes Enforcement Network (FinCEN) Form 114. Specifically, U.S. taxpayers must file an FBAR to report a financial interest in an account located outside the U.S. if the aggregate value […]

The IRS’s High Wealth, High Balance Due Taxpayer Field Initiative

IRS Commissioner Danny Werfel stated in a news release that the IRS is ensuring that wealthy taxpayers are being held accountable to pay the full amount they owe. He added that the agency is doing so by enforcing already existing laws. Specifically, the High Wealth, High Balance Due Taxpayer Field Initiative focuses on taxpayers with […]

What’s your emergency plan?

Is there an emergency plan in place for your business? As Americans deal with hurricanes and other disasters, the IRS is reminding them to prepare. Update, secure and duplicate essential tax and financial documents. You may need them to support insurance claims or apply for tax benefits. Compile lists of business equipment and belongings. IRS.gov […]

Starting a business?

Many people dream of being their own bosses. If you’re hoping to launch a business, get off to a strong start by making good decisions. For example, which business structure will you use (such as a sole proprietorship, partnership or corporation)? This decision will affect the taxes you pay. Another decision is whether to operate […]

Did you pay your payroll taxes?

Recent legal action serves as a reminder to businesses: Take payroll tax administration responsibilities seriously. The Oklahoma- and Virginia-based owners of a mental health counseling services company pleaded guilty to failing to file required quarterly employment tax returns and pay over the full amounts they withheld from employee paychecks. The guilty parties admitted that over […]

IRS error results in notices

The IRS is alerting employee benefit plan sponsors that they might erroneously receive penalty notices for late or incomplete filing. This is due to a programming problem that the tax agency has since repaired. So long as plan sponsors filed a 2022 Form 8955-SSA in full and on time, they can ignore CP 283-C notices […]

FAQs released on Schedules K-2 & K-3

In late 2021, the IRS released new tax forms that should be added to the tax returns of pass-through entities to report certain international income, deductions and credits. The IRS’s goal with Part II of Schedules K-2 and K-3 was to provide more transparency to how pass-through entities calculate their U.S. income tax liability from […]

National Preparedness Month

If you didn’t know, September is National Preparedness Month. The IRS is reminding taxpayers to develop an emergency preparedness plan or, if they already have one, to update it for 2023. In light of several extreme weather events this year and the arrival of peak hurricane season, it’s advice worth taking. Key steps to take […]

Do you qualify for a clean vehicle tax credit?

The IRS has updated the rules to qualify for a clean vehicle (CV) tax credit. Before you buy, be sure the vehicle was made by a qualified manufacturer and meets other conditions. Manufacturers must have an approved agreement with the IRS whereby they supply valid vehicle ID numbers of qualifying vehicles, which can be matched […]