Does your employer provide you with group term life insurance? If so, and if the coverage is higher than $50,000, this employee benefit may create undesirable income tax consequences for you. “Phantom income” The first $50,000 of group term life insurance coverage that your employer provides is excluded from taxable income and doesn’t add anything … Read More
Finding a letter from the IRS in your mailbox can make some people go weak in the knees. Don’t assume it means trouble, since the IRS mails letters or notices for many reasons. Here are some DOs and DON’Ts for taxpayers if a dreaded letter shows up. First, don’t ignore it. Contact us with questions. … Read More
A widely circulated article about the COVID-19 pandemic, written by author Tomas Pueyo in March, described efforts to cope with the crisis as “the hammer and the dance.” The hammer was the abrupt shutdown of most businesses and institutions; the dance is the slow reopening of them — figuratively tiptoeing out to see whether day-to-day … Read More
The Small Business Administration (SBA), in consultation with the U.S. Treasury Dept., has issued additional FAQs regarding the forgiveness of Paycheck Protection Program (PPP) loans. In general, the new FAQs provide guidance on general loan forgiveness, payroll and nonpayroll costs, and reductions to a borrower’s forgiveness amount. More specifically, the SBA details how to calculate … Read More
When the COVID-19 crisis exploded in March, among the many concerns was the state of the nation’s supply chains. Business owners are no strangers to such worry. It’s long been known that, if too much of a company’s supply chain is concentrated (that is, dependent) on one thing, that business is in danger. The pandemic … Read More
A recent Treasury Inspector General for Tax Administration (TIGTA) audit has concluded that most IRS applications have insufficient audit trails to detect unauthorized access to sensitive taxpayer information. The audit said that while the IRS has made “some progress” in implementing relevant solutions to address audit trail weaknesses, “[the] solutions are not effective, and the … Read More
If you’re a partner in a business, you may have come across a situation that gave you pause. In a given year, you may be taxed on more partnership income than was distributed to you from the partnership in which you’re a partner. Why is this? The answer lies in the way partnerships and partners … Read More
The IRS is issuing $500 per qualifying child to some parents. These individuals used the IRS Non-Filers tool before May 17, 2020, and claimed at least one qualifying child. These individuals didn’t receive the qualifying child portion of the Economic Impact Payment (EIP) because of an error that was corrected on May 17. Direct deposit … Read More
Does your business receive large amounts of cash or cash equivalents? You may be required to submit forms to the IRS to report these transactions. Filing requirements Each person engaged in a trade or business who, in the course of operating, receives more than $10,000 in cash in one transaction, or in two or more … Read More
The IRS has issued guidance that addresses questions about the special funding and benefit limitations rules for single-employer defined benefit pension plans under the CARES Act. In a nutshell, the special rules state that a contribution that would otherwise be required to be made during the 2020 plan year must be made by Jan. 1, … Read More