IRS: 2020 Data Book

July 17, 2021By Smeriglio Associates LLCNews

The IRS has released its latest “Data Book,” which covers the agency’s activities during fiscal year 2020. It showed that under the CARES Act, the IRS issued 161.9 million Economic Impact Payments (EIPs) to help mitigate the financial effects of the pandemic. The IRS then issued 146.5 million second-round EIPs. Combined, the IRS provided $412.9 … Read More

IRS: TAS Services to Help You!

July 16, 2021By Smeriglio Associates LLCNews

The Taxpayers Advocacy Service (TAS) is an independent office within the IRS that exists to help taxpayers resolve problems. Recently, the Government Accountability Office (GAO) looked at the operations of TAS. Since 2011, the office has fielded more than 2 million cases. Even with a declining budget, most TAS resources are devoted to direct taxpayer … Read More

Follow the cutoff rules for revenue and expenses

July 15, 2021By Smeriglio Associates LLCNews

Timing counts in financial reporting. Under the accrual method of accounting, the end of the accounting period serves as a strict “cutoff” for recognizing revenue and expenses. However, during the COVID-19 pandemic, managers may be tempted to show earnings or reduce losses. As a result, they may extend revenue cutoffs beyond the end of the … Read More

IRS: Tax Exempt Consequences

July 15, 2021By Smeriglio Associates LLCNews

What happens when a tax-exempt agency seems to be skirting tax laws? On its website, the IRS explains the process of filing a complaint when violations of laws or IRS rules are suspected. Agencies that apply for and are granted a tax-exemption can generally operate free of most tax as long as they meet the … Read More

Accounting methods: Private companies have options

July 14, 2021By Smeriglio Associates LLCNews

Businesses need financial information that’s accurate, relevant and timely. The Securities and Exchange Commission requires publicly traded companies to follow U.S. Generally Accepted Accounting Principles (GAAP), often considered the “gold standard” in financial reporting in the United States. But privately held companies can use simplified alternative accounting methods. What’s right for your business depends on … Read More

IRS: Asking for 10.4% Raise?

July 14, 2021By Smeriglio Associates LLCNews

The IRS is asking for $13.16 billion in funding for fiscal year 2022, a 10.4% increase over fiscal year 2021 budget outlays. In detail, the IRS plans to allocate $176.09 million and an additional 294 full-time employees to bolster taxpayer identity protection. Also, $149.09 million is earmarked to develop and implement a Taxpayer Experience Strategy … Read More

IRS: Extension of Physical Presence Retirement Elections

July 12, 2021By Smeriglio Associates LLCNews

The IRS has extended, through June 30, 2022, temporary relief from the physical presence witnessing requirement for certain retirement plan participant elections. Last year, in response to the COVID-19 pandemic, the IRS provided temporary relief from this rule. The rule required that retirement plan participants making certain plan elections do so in the physical presence … Read More