NFP: Accounting for contributions and grants is now easier

December 9, 2019By Smeriglio Associates LLCNews

Accounting for contributions and grants has often proven complicated for not-for-profits, especially when they come with donor-imposed conditions. But 2018 guidance from the Financial Accounting Standards Board (FASB) provided some much-needed clarification of earlier instructions. Provider factor Traditionally, nonprofits have taken varying approaches to characterizing grants and similar contracts as exchange transactions (also known as … Read More

IRS: Series EE U.S. Savings

December 9, 2019By Smeriglio Associates LLCNews

Do you have Series EE U.S. savings bonds that were bought many years ago, and you now wonder how the interest on them is taxed? EE bonds don’t pay interest currently. Instead, the accrued interest is reflected in their redemption value. (However, owners can elect to have the interest taxed annually.) EE bond interest isn’t … Read More

IRS: Tax Gap

December 8, 2019By Smeriglio Associates LLCNews

The U.S. “tax gap” is on a plateau. The gross tax gap is the difference between true tax liability for a given tax year and the amount that’s paid on time by taxpayers. The IRS has released tax gap estimates for tax years 2011, 2012 and 2013. The estimates show that the compliance rate is … Read More

Safe Harbor Rental Real Estate

December 7, 2019By Smeriglio Associates LLCNews

A safe harbor for rental real estate to qualify for the qualified business income (QBI) deduction is now allowed. IRS Revenue Procedure 2019-38 permits a safe harbor allowing certain interests in rental real estate, including interests in mixed-use property, to be treated as a trade or business for purposes of the qualified business income deduction. … Read More

3 key traits of every successful salesperson

December 6, 2019By Smeriglio Associates LLCNews

Take a mental snapshot of your sales staff. Do only a few of its members consistently bring in high volumes of good margin sales? An old rule of thumb says that about 20% of salespeople will make 80% of sales; in other words, everyone’s not going to be a superstar. However, you can create performance … Read More

IRS: High-Low Per-diem rates

December 6, 2019By Smeriglio Associates LLCNews

The IRS has issued a new notice listing the “high-low” simplified per-diem rates for post-Sept. 30, 2019 travel. The high-cost area per-diem increases $10, and the low-cost area per-diem increases $5, from the prior simplified per-diems. In addition, the following have been added to the list of high-cost localities: Mill Valley / San Rafael / … Read More

Using your 401(k) plan to save this year and next

December 5, 2019By Smeriglio Associates LLCNews

You can reduce taxes and save for retirement by contributing to a tax-advantaged retirement plan. If your employer offers a 401(k) or Roth 401(k) plan, contributing to it is a taxwise way to build a nest egg. If you’re not already contributing the maximum allowed, consider increasing your contribution rate between now and year end. … Read More

IRS: Assessing Additional Taxes Period

December 5, 2019By Smeriglio Associates LLCNews

Once a tax return is properly filed, the IRS generally has three years to assess additional taxes. If no return is filed, no limit applies. One taxpayer faxed his 2001 partnership tax return to an IRS revenue agent, in July 2002. In 2010, when the IRS added tax on the return, the taxpayer argued that … Read More

3 last-minute tips that may help trim your tax bill

December 4, 2019By Smeriglio Associates LLCNews

If you’re starting to fret about your 2019 tax bill, there’s good news — you may still have time to reduce your liability. Three strategies are available that may help you cut your taxes before year-end, including: 1. Accelerate deductions/defer income. Certain tax deductions are claimed for the year of payment, such as the mortgage … Read More

IRS: Nonfiler Employment Taxes 6020(b)

December 4, 2019By Smeriglio Associates LLCNews

Billions of dollars in nonfiler employment taxes went unassessed in the IRS’s automated 6020(b) program due mainly to resource limitations. That’s the conclusion of a newly released audit by the U.S. Treasury Inspector General for Tax Administration. When a taxpayer has a filing requirement and fails to file a tax return, the IRS is authorized … Read More