Business website costs: How to handle them for tax purposes

September 30, 2020By Smeriglio Associates LLCNews

The business use of websites is widespread. But surprisingly, the IRS hasn’t yet issued formal guidance on when Internet website costs can be deducted. Fortunately, established rules that generally apply to the deductibility of business costs, and IRS guidance that applies to software costs, provide business taxpayers launching a website with some guidance as to … Read More

IRS: Difficulty Locating and Retrieving Paper Tax Records

September 30, 2020By Smeriglio Associates LLCNews

The IRS has a paper problem, according to one report. The Treasury Inspector General for Tax Administration (TIGTA) report noted that the “IRS has difficulty locating and timely retrieving some paper tax records.” In 2019, 17.5 million paper tax returns were filed, plus, many IRS forms can’t be filed electronically, which means the IRS must … Read More

Collective impact initiatives: All for one and one for all

September 29, 2020By Smeriglio Associates LLCNews

Collective impact initiatives are growing among not-for-profits. Such initiatives are about more than collaboration. They represent the commitment of a group of organizations to a common agenda for solving a specific social problem. This group can include the nonprofits themselves, government agencies, businesses and constituent communities. Should your nonprofit participate in collective impact? 5 requirements … Read More

Can investors who manage their own portfolios deduct related expenses?

September 28, 2020By Smeriglio Associates LLCNews

In some cases, investors have significant related expenses, such as the cost of subscriptions to financial periodicals and clerical expenses. Are they tax deductible? Under the Tax Cut and Jobs Act, these expenses aren’t deductible through 2025 if they’re considered expenses for the production of income. But they are deductible if they’re considered trade or … Read More

IRS: Revisiting the Dependent Definition

September 26, 2020By Smeriglio Associates LLCNews

How does the tax code define “dependent” for tax purposes? The IRS has finalized the definition based on changes brought by the Tax Cuts and Jobs Act (TCJA) for tax years 2018 through 2025. The definition of dependent includes a qualifying relative who meets two tests. The “income test” is met if the individual receives … Read More

IRS announces per diem rates for business travel

September 25, 2020By Smeriglio Associates LLCNews

In Notice 2020-71, the IRS recently announced per diem rates that can be used to substantiate the amount of business expenses incurred for travel away from home on or after October 1, 2020. Employers using these rates to set per diem allowances can treat the amount of certain categories of travel expenses as substantiated without … Read More

IRS: E-signature Detection

September 25, 2020By Smeriglio Associates LLCNews

The IRS is criticized for not catching fraudulent e-signatures, according to one report. An audit by the Treasury Inspector General for Tax Administration (TIGTA) found that while some fraudulent authorizations (such as Power of Attorney forms) were detected, many weren’t. A sample turned up 11 unverified signatures, which affected 1,546 Taxpayer ID numbers that TIGTA … Read More