The COVID-19 crisis is affecting not only the way many businesses operate, but also how they assess productivity. How can you tell whether you’re getting enough done when so much has changed? There’s no easy, one-size-fits-all answer, but business owners should ask the question so you can adjust expectations and objectives accordingly. Impact of remote … Read More
Even if you can’t pay your tax bill, you can avoid excessive penalties by taking certain steps. The IRS recommends that you file your tax return or request an extension and pay what you can to minimize penalties and interest. Not filing will result in a failure-to-file penalty of 5% of the unpaid tax required … Read More
The Congressional Budget Office (CBO) announced that “the federal budget deficit in June 2020 was $863 billion, compared with a deficit of $8 billion in the same month last year.” The overall deficit for fiscal year 2020 now stands at $2.7 trillion, according to the CBOs Monthly Budget Review for June. “The increase stems from … Read More
The 2020 tax filing season has been like no other, with the IRS taking “unprecedented and drastic” actions in response to the COVID-19 pandemic. This assessment comes from a recent Treasury Inspector General for Tax Administration (TIGTA) audit detailing the interim results of the 2020 tax filing season. The audit looked at the processing of … Read More
Many business owners — particularly those who own smaller companies — spend so much time trying to eliminate weaknesses that they never fully capitalize on their strengths. One way to do so is to identify and explicate your unique selling proposition (USP). Give it some thought In a nutshell, a USP states why customers should … Read More
Are you suffering financially due to COVID-19? You might qualify to withdraw up to $100,000 from your IRA or other retirement plan before 12/31/20 without any negative tax consequences. Qualifying distributions aren’t subject to the 10% tax penalty that generally applies to distributions made before age 59½, and the regular tax liability can be paid … Read More
Some of the most effective estate planning strategies involve setting up irrevocable trusts. For a trust to be deemed irrevocable, you, the grantor, lose all incidents of ownership of the trust’s assets. In other words, you’re effectively removing those assets from your taxable estate. But what if you’re uncomfortable placing your assets beyond your control? … Read More
The IRS has done a praiseworthy job expanding fraud detection, according to an audit by the Treasury Inspector General for Tax Administration (TIGTA). The audit reviewed IRS tax refund fraud practices, which TIGTA calls “extremely effective in addressing the identity theft epidemic and reducing its negative impact on tax administration.” Refund fraud occurs when a … Read More
For business owners, succession planning is ideally a long-term project. You want to begin laying out a smooth ownership transition, and perhaps grooming a successor, years in advance. And you shouldn’t officially hand over the reins until many minute details have been checked and rechecked. But it doesn’t always work out this way. As the … Read More
The July 15 tax filing deadline is in the rearview mirror and many IRS actions that were postponed due to the COVID-19 virus will now resume. Among them are collection activities, including the filing of liens and levies. A tax lien is an encumbrance on property to secure payment of tax, generally preceded by a … Read More