If a taxpayer is audited and doesn’t have good records, the IRS can reconstruct his or her income. A “bank-deposits analysis” assumes that all money deposited in accounts during a given period is taxable income. In one case, the IRS conducted such an analysis of a business owner’s coin shop and precious metals business. The … Read More
According to the Center for Effective Philanthropy, practically all not-for-profits in the United States solicit feedback from their clients when designing programs and services. However, resource constraints — lack of adequate staffing, funding and sophisticated technology — may mean that they don’t collect data as often as they’d like or use it as well as … Read More
The federal government logged an estimated budget deficit of $358 billion for the 1st quarter of fiscal year 2020, according to the Congressional Budget Office (CBO). That’s $39 billion more than the same period in FY 2019. Here are some highlights: the combined total of payroll taxes and individual income taxes rose 5%. Withholding rose … Read More
Most business owners would probably agree that, when it comes to sales, there’s always room for improvement. To this end, every company should strive for organic sales growth — that is, increases from existing operations unrelated to a merger or acquisition. That’s not to say a merger or acquisition is necessarily a bad idea, but … 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 … Read More
The IRS’s Statistics of Income program has published two new data sets: State and County Migration Data, 2017-2018, and State and County Migration Data, 2016-2017. The data shows the migration between both states and counties, including migration flows at the state level, by size of adjusted gross income and the age of the primary taxpayer. … Read More
Direct deposit remains the fastest way to receive federal tax refunds. With tax season starting soon, the IRS reminds taxpayers that opting to have their tax refund directly deposited into their checking or savings accounts is the fastest way to get their money. According to the IRS, eight out of 10 taxpayers get their refunds … Read More
This year, the optional standard mileage rate used to calculate the deductible costs of operating an automobile for business decreased by one-half cent, to 57.5 cents per mile. As a result, you might claim a lower deduction for vehicle-related expense for 2020 than you can for 2019. Calculating your deduction Businesses can generally deduct the … Read More
Generally, amounts withdrawn from an individual retirement account before age 59-1/2 are subject to an additional 10% tax, unless an exception applies (such as a distribution in a case of financial hardship). With the recent passage of the Setting Every Community Up for Retirement Enhancement Act (SECURE) a new exception has been added. Starting in … Read More
Many taxpayers make charitable gifts — because they’re generous and they want to save money on their federal tax bills. But with the tax law changes that went into effect a couple years ago and the many rules that apply to charitable deductions, you may no longer get a tax break for your generosity. Are … Read More