Taxpayers who owe more taxes than they can pay may seek an Offer in Compromise (OIC) with the IRS to settle the debt for less than the amount owed. The IRS recently revised its policy of offsetting refunds after accepting an OIC. Previously, the Internal Revenue Manual provided that taxpayer refunds should be offset against … Read More
An external audit is less stressful and less intrusive if you anticipate your auditor’s document requests. Auditors typically ask clients to provide similar documents year after year. They’ll accept copies or client-prepared schedules for certain items, such as bank reconciliations and fixed asset ledgers. To verify other items, such as leases, invoices and bank statements, … Read More
With Thanksgiving just around the corner, the holiday season will soon be here. At this time of year, your business may want to show its gratitude to employees and customers by giving them gifts or hosting holiday parties again after a year of forgoing them due to the pandemic. It’s a good time to brush … Read More
Are you planning to launch a business or thinking about changing your business entity? If so, you need to determine which entity will work best for you — a C corporation or a pass-through entity such as a sole-proprietorship, partnership, limited liability company (LLC) or S corporation. There are many factors to consider and proposed … Read More
Are you familiar with a financial tool known as an ABLE account? ABLE stands for Achieving a Better Life Experience. It’s a tax-advantaged account that lets disabled taxpayers save and pay for certain expenses without impairing their eligibility for government programs. Distributions from an ABLE account are tax-free if they’re used to pay certain disability-related … Read More
As we approach the holidays, many people plan to donate to their favorite charities or give money or assets to their loved ones. Here are the basic tax rules involved in these transactions. Donating to charity Normally, if you take the standard deduction and don’t itemize, you can’t claim a deduction for charitable contributions. But … Read More
The IRS has issued guidance on the timing of tax-exempt income arising from forgiven PPP loans. Three Revenue Procedures advise that taxpayers may treat amounts as excluded from gross income in connection with PPP loan forgiveness: when eligible expenses are paid or incurred; when a PPP loan forgiveness application is filed; or when PPP loan … Read More
The IRS has announced a new online identity verification process for using its online services. Taxpayers will use the new identity verification process to sign into online services such as the Child Tax Credit Update Portal, Online Account, Get Transcript Online, Get an Identity Protection PIN and Online Payment Agreement. Under the new verification process, … Read More
The need for a will as a key component of your estate plan may seem obvious, but you’d be surprised by the number of people — even affluent individuals — who don’t have one. A reason for this may be a common misconception that a revocable trust (sometimes called a “living trust”) obviates the need … Read More
An existing tax deduction for businesses has become more valuable, for now. Generally, businesses can deduct only 50% of the cost of business meals and beverages. The 2020 Taxpayer Certainty and Disaster Relief Act increased that deduction to 100% for meals purchased from a restaurant in 2021 or 2022. The IRS just announced that use … Read More