The annual gift tax exclusion is available only for gifts of “present interests.” But a contribution to a trust is, by definition, a gift of a future interest. To get around this obstacle, trusts typically provide beneficiaries with Crummey withdrawal powers. By giving them the right to withdraw trust contributions for a limited period of … Read More
Audited financial statements come with a special bonus: a management letter. Based on observations during audit fieldwork, the letter identifies issues affecting such areas of your business as internal controls, cash management, safety and employee benefits. Then it recommends possible corrective actions. Unfortunately, management letters are often filed away with the financial statements, and the … Read More
If you’re a small business owner, you may want to set up a retirement plan for yourself and any employees. Several types of plans are eligible for tax advantages, including 401(k)s, Simplified Employee Pension (SEP) plans and SIMPLE IRAs. For 2019, the maximum amount you can contribute to a 401(k) and exclude from income is … Read More
Borrowing isn’t just for businesses. Many not-for-profits borrow money for major capital purchases, new program funding and even to manage current cash flow. But if you’re hoping to borrow, know that it can be hard to find a lender. The odds of qualifying are better if your organization already has a relationship with the lender, … Read More
Although it’s hard to say “no” to a generous donor, your not-for-profit needs to be careful about accepting “gift horses.” There are many reasons to decline gifts, from space limitations to unsuitability to your mission. An art collection, for example, may require insurance and offsite storage your nonprofit can’t afford. A gift acceptance policy makes … Read More
In addition to the difficult personal issues that divorce entails, several tax concerns need to be addressed to ensure that taxes are kept to a minimum and that important tax-related decisions are properly made. For example, if you sell your personal residence or one spouse remains living there while the other moves out, you’ll want … Read More
Do you have tax questions? You may be wondering about the options for paying your bill, as well as possible penalties. Or perhaps you’re wondering if you have an outstanding balance with the IRS. Taxpayer questions never end. You can find answers by visiting an IRS Web page called “Let Us Help You.” (You can … Read More
The IRS Advisory Council has issued its 2019 annual report, which makes recommendations to the tax agency on new and continuing issues in tax administration. The 2019 report includes recommendations on various topics and concerns. They include accelerating the use of e-signatures in federal tax administration, guidance relating to the Tax Cuts and Jobs Act … Read More
The IRS is making house calls. Due to declining IRS resources in some areas, taxpayers with ongoing tax compliance issues may get a knock at the door. The primary goal is to establish face-to-face contact with individuals whose issues haven’t been resolved by mail. The IRS officer will attempt to gather financial information and will … Read More
Employers should keep using the current version of Form I-9. The U.S. Citizenship and Immigration Services (USCIS) has advised employers to continue using the current form, even though it expired on Aug. 31. All employers in the U.S. must complete a Form I-9 for each person, citizen or noncitizen, hired to work in the U.S. … Read More