CBO: Q3 Close and Estimates

October 22, 2020By Smeriglio Associates LLCNews

The 2020 fiscal year, which ended on Sept. 30, 2020 is now history. The final estimate of the federal budget deficit is $3.1 trillion, according to a Congressional Budget Office (CBO) report. That shortfall, while enormous, is $180 billion less than expected, the CBO said. For the full year, receipts fell by $44 billion and … Read More

Avoiding conflicts of interest with auditors

October 21, 2020By Smeriglio Associates LLCNews

A conflict of interest could impair your auditor’s objectivity and integrity and potentially compromise you company’s financial statements. That’s why it’s important to identify and manage potential conflicts of interest. What is a conflict of interest? According to the America Institute of Certified Public Accountants (AICPA), “A conflict of interest may occur if a member … Read More

Understanding the passive activity loss rules

October 20, 2020By Smeriglio Associates LLCNews

Are you wondering if the passive activity loss rules affect business ventures you’re engaged in — or might engage in? If the ventures are passive activities, the passive activity loss rules prevent you from deducting expenses that are generated by them in excess of their income. You can’t deduct the excess expenses (losses) against earned … Read More

2020 – 10/12 – IRS: EIP to Incardinated Individuals

October 20, 2020By Smeriglio Associates LLCNews

The IRS can’t deny Economic Impact Payments (EIPs) to incarcerated individuals, according to a recent federal district court decision. The person must satisfy the criteria for receiving an EIP, which is paid to individuals to help mitigate the financial effects of COVID-19. In an earlier IRS FAQ on its website, incarcerated individuals were among those … Read More

What tax records can you throw away?

October 19, 2020By Smeriglio Associates LLCNews

October 15 is the deadline for individual taxpayers who extended their 2019 tax returns. (The original April 15 filing deadline was extended this year to July 15 due to the COVID-19 pandemic.) If you’re finally done filing last year’s return, you might wonder: Which tax records can you toss once you’re done? Now is a … Read More

2020 – 10/09 – IRS: Protection of Taxpayers’ Return Information

October 19, 2020By Smeriglio Associates LLCNews

The IRS recently issued a statement about the protection of taxpayers’ return information. The release reaffirms the “extensive measures” the IRS reportedly has in place to monitor and prevent unauthorized access to, and disclosure of, taxpayers’ return information. “In response to recent press reports, the IRS has taken steps to reconfirm the integrity of its … Read More

What are excise taxes?

October 17, 2020By Smeriglio Associates LLCNews

What are excise taxes and does your business owe them? An excise tax is imposed on the sale of specific goods or services, or on certain uses. It’s generally imposed on sales of items such as fuel, airline tickets, indoor tanning and tires. Excise taxes may also be imposed at the time of import, sale … Read More

IRS: Legacy Technology Systems

October 16, 2020By Smeriglio Associates LLCNews

IRS technology systems are behind the times, according to one report. The Treasury Inspector General for Tax Administration (TIGTA) recently audited the management of the “legacy” systems of the IRS and found much improvement was needed. “The IRS has not developed specific or long-term plans to address updating, replacing, or retiring most of its legacy … Read More