IRS announces adjustments to key retirement plan limits

December 8, 2021By Smeriglio Associates LLCNews

In Notice 2021-61, the IRS recently announced 2022 cost-of-living adjustments to dollar limits and thresholds for qualified retirement plans. Here are some highlights: Elective deferrals. The annual limit on elective deferrals (employee contributions) will increase from $19,500 to $20,500 for 401(k), 403(b) and 457 plans, as well as for Salary Reduction Simplified Employee Pensions (SARSEPs). … Read More

4 red flags of an unreliable budget

December 7, 2021By Smeriglio Associates LLCNews

Every business should prepare an annual budget. Creating a comprehensive, realistic spending plan allows you to identify potential shortages of cash, possible constraints on your capacity to fulfill strategic objectives, and other threats. Whether you’ve already put together a 2022 budget or still need to get on that before year end, here are four red … Read More

IRS: FBAR Eligible Accounts

December 7, 2021By Smeriglio Associates LLCNews

Taxpayers with foreign accounts worth more than $10,000 in the preceding year must file a “Report of Foreign Bank and Financial Accounts” (FBAR). Failure to file can result in hefty penalties, though if non-willful, penalties are limited. Previously, a U.S. District Court ruled that the penalty is assessed per FBAR form. That would mean multiple … Read More

2021 – 12/02 – IRS: Reduce Tax Liability

December 6, 2021By Smeriglio Associates LLCNews

As 2021 comes to an end, the IRS wants to remind you of certain tasks you may want to accomplish before Dec. 31. To reduce this year’s tax liability, charitable donations must be made by year-end. In 2021, even those who don’t itemize can claim a limited $300 deduction, or $600 for married couples who … Read More

IRS: Offer in Compromise

December 4, 2021By Smeriglio Associates LLCNews

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

Are you ready for the upcoming audit season?

December 3, 2021By Smeriglio Associates LLCNews

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

IRS: ABLE Financial Tool

November 30, 2021By Smeriglio Associates LLCNews

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