Do you maintain your tax-exempt status?

Under Section 501(c)(3) of the tax code, an organization can be exempt from federal income tax if it’s operated exclusively for charitable, religious, scientific or other qualified purposes. In one case, a coffee shop/restaurant was operated as a tax-exempt organization. It was granted a tax exemption to provide training and employment opportunities for certain individuals. […]

IRS renewing efforts to alert businesses of misleading ERC claims

The IRS is renewing its efforts to alert business owners of misleading claims involving Employee Retention Credits (ERCs). Indeed, there continues to be a barrage of broadcast advertising, direct mail solicitations and online promotions about ERCs. “Aggressive promoters are wildly misrepresenting and exaggerating who can qualify for the credits,” the IRS said. In response, the […]

Income matching on your tax return

The IRS electronically matches the information you report on your tax return with what’s reported by others on documents such as W-2s and 1099s. If there are discrepancies, your return may be flagged for closer scrutiny by the IRS. When we prepare your return, be sure to tell us about all income, even if you […]

Report criticizes Nonprofit hospitals

Nonprofit hospitals are exempt from paying federal tax if they meet certain requirements. These include providing free or discounted care and operating community health education activities. In a recent report, self-described nonpartisan think tank the Lown Institute found that more than 1,350 nonprofit hospitals didn’t meet the requirements. “Americans desperately need hospitals to use their […]

Estimated Tax Payment due soon

You’re required to pay taxes as you earn or receive income during the year, either through withholding or by making estimated tax payments. For estimated tax purposes, there are four payment periods. The due date for 2023’s next quarterly payment is Thursday, June 15. (The first payment was due April 18, and the last two […]

Is your passport at risk?

If you have seriously delinquent tax debt (SDTD), it could put your passport at risk, unless an exception applies. In 2023, SDTD is an unpaid federal tax debt of more than $59,000. So long as the IRS first follows certain procedures, the U.S. State Dept. generally can deny, revoke or limit the passport of someone […]

Changes in Interest Expense deduction limits

Before 2022, businesses could deduct 30% of their earnings before interest, tax, depreciation, and amortization (EBITDA). Currently, they’re required to calculate their interest expense deductions based on the more stringent earnings before interest and taxes (EBIT) standard. Businesses affected by the change are estimated to see, on average, close to a threefold increase in their […]

Tax credits for Home Energy Improvements

Have you taken steps to make your home more energy efficient, such as installing energy efficient windows or doors or adding solar panels? If so, you may qualify for the Energy Efficient Home Improvement Credit or the Residential Clean Energy Credit. The former applies only for improvements to an existing home. The amount of the […]

Standard Deduction or Itemize?

As you consider 2023 tax planning, should you claim the standard deduction or itemize deductions? This year, the standard deduction is $27,700 for married joint filers, $20,800 for head of household filers and $13,850 for single filers. Not everyone can use the standard deduction, including married couples who file separately, business owners filing for a […]

Red Tape Reduction Act Introduced

Two U.S. Senators seek a bipartisan fix to a widely criticized process. Senators Sherrod Brown (D-OH) and Bill Cassidy (R-LA) introduced the Red Tape Reduction Act to increase the threshold for issuing 1099-K forms for third-party payment transactions. Changes to the process have lowered the threshold that determines when a 1099-K form must be issued […]