It’s been a year like no other. The sudden impact of the COVID-19 pandemic in March forced every business owner — ready or not — to execute his or her disaster response plan. So, how did yours do? Although it may still be a little early to do a complete assessment of what went right … Read More
IRS technology systems are behind the times, according to one report. The Treasury Inspector General for Tax Administration (TIGTA) recently audited the management of the “legacy” systems of the IRS and found much improvement was needed. “The IRS has not developed specific or long-term plans to address updating, replacing, or retiring most of its legacy … Read More
On September 30, the Financial Accounting Standards Board (FASB) finalized a rule to defer the effective date of the updated long-term insurance standard for a second time. The deferral will give insurers more time to properly implement the changes amid the COVID-19 pandemic. Need for change After 12 years of work, the FASB issued Accounting Standards Update … Read More
The deadline for various tax-related actions is almost here. Oct. 15, 2020 is the deadline for filing several types of 2019 income tax returns that were extended. For example, it’s the due date for 2019 individual income tax returns for those who requested an extension. It’s also the due date for corporate and electing large … Read More
Most salespeople would tell you that there are few better feelings in life than closing a deal. This is because guiding a customer through the sales process and coming out the other side with dollars committed isn’t a matter of blind luck. It’s a craft — based on equal parts data mining, psychology, intuition and … Read More
IRS audit rates are historically low, according to the latest data, but that’s little consolation if your return is among those selected to be examined. But with proper preparation and planning, you should fare well. In fiscal year 2019, the IRS audited approximately 0.4% of individuals. Businesses, large corporations and high-income individuals are more likely … Read More
If you file a joint tax return with your spouse, you should be aware of your individual liability. And if you’re getting divorced, you should know that there may be relief available if the IRS comes after you for certain past-due taxes. What’s “joint and several” liability? When a married couple files a joint tax … Read More
COVID-19 is causing operational delays for the IRS, as it has with many businesses. An IRS official recently acknowledged that the tax agency is experiencing delays in processing paper returns and other mail due to limited staffing. As of Oct. 2, around 5 million pieces of unopened mail (about half of which are tax returns) … Read More
One unfortunate fallout of the COVID-19 pandemic is that some businesses are closing permanently. If you’re considering a closure, be prepared to address several issues, along with your tax advisor. The IRS has redesigned its “Closing a Business” page “to help businesses comply with final tax responsibilities,” said Eric Hylton, Commissioner of the IRS Small … Read More
The COVID-19 pandemic has resulted in many people borrowing from their companies’ qualified retirement plans, and the CARES Act provides some temporary rule changes to this loan type. However, given the risks and costs of borrowing from a retirement plan, it should generally be viewed as a last resort. From an estate planning angle, subtracting … Read More