What’s best for you, taking the standard deduction or claiming itemized deductions? The standard deduction changes yearly and is based on age and filing status. The Tax Cuts and Jobs Act raised the standard deduction so that more people could benefit from its simplicity. Itemizing deductions requires more work, but taxpayers can save taxes if … Read More
The IRS has issued final regulations on the personal use of employer-provided vehicles. Specifically, the final regs explain the special valuation rules to use in determining the amount to include in an employee’s gross income for personal use of an employer-provided vehicle. The regs update the fleet-average and cents-per-mile valuation rules to align the limitations … Read More
The application for tax-exempt organizational status goes fully electronic. Starting January 31, but with a grace period until April 30, the IRS will require applicants to file electronically “Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code.” The required fee for Form 1023 will remain $600 for 2020. Call … Read More
Contingent liabilities reflect amounts that your business might owe if a specific “triggering” event happens in the future. Sometimes companies are unclear when they’re required to report a contingent liability on their financial statements under U.S. Generally Accepted Accounting Principles (GAAP). Here are the basics. What are contingent liabilities? Operating a business comes with a … Read More
It’s tax season and with it comes the risk of identity theft. As taxpayers focus on filing their returns, cybercriminals are focused on stealing their personal identifying information. That’s why the IRS just launched Identity Theft Central, with online access to information about identity theft and data security for taxpayers, tax pros, and businesses. This … Read More
Do you associate enterprise risk management (ERM) with for-profit businesses? This systemic approach to risk reduction can be just as effective when adopted by nonprofit organizations. Even organizations with limited resources can — and should — use an ERM process to combat threats. Weighing risks ERM is a comprehensive program that considers an organization’s entire … Read More
A friendly reminder that you can drop-off your Tax Documents to our office, mail to our office, email to us, or electronically upload your documents to our portal. We cannot begin any work for you until we receive all of the following items:#1 Signed Tax Engagement Letter,#2 Signed Audit Representation Letter (if you chose to enroll … Read More
Right now, you may be more concerned about your 2019 tax bill than you are about your 2020 tax situation. That’s understandable because your 2019 individual tax return is due to be filed in less than three months. However, it’s a good idea to familiarize yourself with tax-related amounts that may have changed for 2020. … Read More
As we begin to file 2019 tax returns, a new report looks at how the IRS performed last tax season. A Treasury Inspector General for Tax Administration (TIGTA) audit shows that, by May 2019, the IRS received over 141 million returns and issued about 100.4 million refunds totaling more than $274 billion. In addition to … Read More
If you’re in line to inherit property from a parent or other loved one, it’s critical to understand the basis consistency rules. Current tax law, passed in 2015, provides that the income tax basis of property received from a deceased person can’t exceed the property’s fair market value (FMV) as finally determined for estate tax … Read More