Launching a business? How to treat start-up expenses on your tax return

August 4, 2020By Smeriglio Associates LLCNews

While the COVID-19 crisis has devastated many existing businesses, the pandemic has also created opportunities for entrepreneurs to launch new businesses. For example, some businesses are being launched online to provide products and services to people staying at home. Entrepreneurs often don’t know that many expenses incurred by start-ups can’t be currently deducted. You should … Read More

Businesses: Get ready for the new Form 1099-NEC

August 3, 2020By Smeriglio Associates LLCNews

There’s a new IRS form for business taxpayers that pay or receive nonemployee compensation. Beginning with tax year 2020, payers must complete Form 1099-NEC, Nonemployee Compensation, to report any payment of $600 or more to a payee. Why the new form? Prior to 2020, Form 1099-MISC was filed to report payments totaling at least $600 … Read More

2020 – 07/08 – $1.4 Billion in EIP to Deceased Persons

July 31, 2020By Smeriglio Associates LLCNews

Economic Impact Payments (EIPs) totaling $1.4 billion were sent to deceased persons, said the Treasury Inspector General for Tax Administration. How did that happen? The Government Accounting Office (GAO) said, in the interest of speed, initial batches of EIPs went out without reference to Social Security Administration death records. If similar payments are made in … Read More

IRS: Deprecation Dollar Limits on Business Automobiles

July 30, 2020By Smeriglio Associates LLCNews

The IRS has issued depreciation dollar limits for business passenger automobiles placed in service during calendar year 2020. For passenger automobiles acquired after Sept. 27, 2017, and placed in service in 2020, to which the first-year bonus depreciation deduction applies, the limits are: $18,100 for the placed-in-service year; $16,100 for the second tax year; $9,700 … Read More

IRS: Continued Digital Procedures through 12/31/2020

July 29, 2020By Smeriglio Associates LLCNews

The IRS temporarily extends the deadline for certain email and digital procedures. Due to COVID-19, the IRS announced in March that it would deviate from certain established procedures through July 15, 2020. That is, IRS employees have been allowed to accept digital, scanned or photographed images of taxpayer signatures on documents related to a taxpayer’s … Read More

External audits offer many benefits to nonprofits

July 28, 2020By Smeriglio Associates LLCNews

Your nonprofit organization may be required to hire an independent outside CPA to audit its books, depending on its annual gross receipts and other factors. Even when external audits aren’t mandated, however, they’re often recommended. These audits can provide assurance to donors and other stakeholders that your organization is operating with integrity and within acceptable … Read More

IRS: Mailbox Rule

July 28, 2020By Smeriglio Associates LLCNews

Taxpayers strive to get their tax returns in the mail on time, but due to the COVID-19 pandemic, returns may sit in mail facilities for days. The IRS says taxpayers don’t need to worry if they follow the “mailbox rule:” a paper return is deemed to be filed on the date of the postmark, even … Read More