Ineffective inventory management and reporting can result in bloated working capital and impaired business profits. In industries that rely on overseas suppliers, best practices for managing inventory may have recently changed. In today’s uncertain marketplace, it’s clearly a good idea to review your current approach and make adjustments as needed. What’s the right reporting method? … Read More
The IRS has released the covered compensation tables for the 2022 plan year. For purposes of determining covered compensation for the 2022 year, the taxable wage base is $147,000. The taxable wage base is the amount of an employee’s wages that is subject to Social Security tax. It is also used by employers for qualified … Read More
Management needs timely, accurate feedback to guide operating decisions, anticipate problems and take advantage of emerging opportunities. Unfortunately, comprehensive financial statements take a long time to generate. Reporting key performance indicators (KPIs) on a monthly or weekly basis is a simplified alternative to gauge performance in real time. Popular financial metrics KPIs measure an organization’s … Read More
The IRS has issued a reminder about checking your 2021 tax liability to avoid being subject to estimated tax penalties, which apply if you underpay your taxes. Taxpayers who paid too little tax during 2021 can still avoid a surprise tax-time bill and possible penalty by making a quarterly estimated tax payment to the IRS. … Read More
How is the IRS handling misconduct among its employees? The Treasury Inspector General for Tax Administration (TIGTA) just took a look. A TIGTA audit showed that the IRS consistently used a “Conduct Case Closure Checklist” to address previously reported issues in 85 of 86 randomly selected cases. However, “misconduct was not always addressed timely,” TIGTA … Read More
The use of a company vehicle is a valuable fringe benefit for owners and employees of small businesses. This perk results in tax deductions for the employer as well as tax breaks for the owners and employees using the cars. (And of course, they get the nontax benefit of getting a company car.) Plus, current … Read More
The federal budget deficit for the first two months of fiscal year 2022 (Oct. and Nov.) was an estimated $358 billion, according to a Congressional Budget Office report. That amount is $71 billion below the deficit recorded for the same period in fiscal year 2021, the CBO said. Individual income and payroll taxes grew by … Read More
If you’re paying back college loans for yourself or your children, you may wonder if you can deduct the interest you pay on the loans. The answer is yes, subject to certain limits. The maximum amount of student loan interest you can deduct each year is $2,500. Unfortunately, the deduction is phased out if your … Read More
After recent disasters such as the tornado in Kentucky, many people are giving to charity to help the victims. And due to a special temporary rule, more people will be able to deduct donations to qualifying charities on their 2021 federal income tax returns. Under a COVID-19 law, taxpayers don’t need to itemize deductions on … Read More
The Infrastructure Investment and Jobs Act (IIJA) was signed into law on November 15, 2021. It includes new information reporting requirements that will generally apply to digital asset transactions starting in 2023. Cryptocurrency exchanges will be required to perform intermediary Form 1099 reporting for cryptocurrency transactions. Existing reporting rules If you have a stock brokerage … Read More