Do you need to file a gift tax return?

April 1, 2021By Smeriglio Associates LLCNews

It’s tax-filing season and you’re likely focused on your income or business tax returns. But don’t forget about another type of return. In 2020, if you made substantial gifts of wealth to family members you may have to file a gift tax return. Filing a gift tax return Generally, a federal gift tax return (Form … Read More

IRS: Work-From-Home Deductibles?

April 1, 2021By Smeriglio Associates LLCNews

With many taxpayers working from home due to COVID-19, you may be wondering about the possibility of claiming home office deductions on your tax return. Unfortunately, employees aren’t currently eligible. However, self-employed homeowners and renters who are otherwise eligible can claim deductions. Deductible expenses include mortgage interest, insurance, utilities, repairs, maintenance, depreciation and rent. Taxpayers … Read More

IRS: Is The IRS Responding?

March 31, 2021By Smeriglio Associates LLCNews

Is the IRS effectively handling taxpayer correspondence? That’s the focus of a Treasury Inspector General for Tax Administration (TIGTA) audit. Written responses from taxpayers to IRS delinquent account inquiries are handled by the Compliance Services Collection Operations (CSCO). The TIGTA audit noted that over-aged inventory of taxpayer correspondence had increased greatly in recent years. At … Read More

How auditors assess cyber risks

March 30, 2021By Smeriglio Associates LLCNews

Data security is a critical part of the audit risk assessment. If your financial statements are audited, your audit team will tailor their procedures to answer critical questions about cyber risks and the effectiveness of your internal controls. While conducting fieldwork, they’ll assess how your practices measure up and whether your company has weaknesses that … Read More

IRS: PPP is a Deductible Medical Expense

March 30, 2021By Smeriglio Associates LLCNews

The IRS has announced that the purchase of personal protective equipment (PPE), such as masks, hand sanitizer and sanitizing wipes, purchased for the primary purpose of preventing the spread of the COVID-19, is a deductible medical expense. Amounts paid by an individual taxpayer for PPE for use by the taxpayer, the taxpayer’s spouse or dependents … Read More

IRS: EIP1, 2 and 3 Differences

March 29, 2021By Smeriglio Associates LLCNews

The IRS has begun sending the third round of Economic Impact Payments (also sometimes referred to as recovery rebates) to eligible taxpayers via direct deposit or paper checks. The IRS calls these payments “EIP 3” and they differ from EIP 1 and EIP 2 in a few respects. For example, the amount of EIP 3 … Read More

IRS: Unemployment Benefits Announcement

March 27, 2021By Smeriglio Associates LLCNews

The IRS is asking individuals who received unemployment benefits in 2020 and have already filed their 2020 tax returns, not to file amended returns until it issues additional guidance. The American Rescue Plan Act provides that, for taxpayers whose 2020 modified adjusted gross income is less than $150,000, the first $10,200 of unemployment compensation received … Read More

IRS: Reduce 2020 Tax Bill with IRA

March 26, 2021By Smeriglio Associates LLCNews

There’s still time to reduce your 2020 tax bill if you’re eligible for a deductible traditional IRA. Taxpayers of all ages may be able to claim deductions on their 2020 tax returns for contributions to their IRAs made through April 15, 2021. This is true even if you file your tax return before making the … Read More