Related-party transactions and financial connections are a normal part of operating a business. But these arrangements have gotten a bad rap because dishonest people sometimes use them to disguise poor performance or dishonest activities. So, identifying related parties and evaluating your interactions with them are important parts of the external audit process — especially in … Read More
Federal government agencies, including the IRS, were dramatically affected by COVID-19. How well did the IRS protect its workers and the public from the pandemic? In April of 2021, the Treasury Inspector General for Tax Administration (TIGTA) conducted unannounced inspections at 20 of 350 Taxpayer Assistance Centers and found that mostly, safety protocols were followed. … Read More
If you use an automobile in your trade or business, you may wonder how depreciation tax deductions are determined. The rules are complicated, and special limitations that apply to vehicles classified as passenger autos (which include many pickups and SUVs) can result in it taking longer than expected to fully depreciate a vehicle. Cents-per-mile vs. … Read More
The IRS is reminding U.S. citizens, resident aliens and any domestic legal entity that the extension deadline to file their annual Report of Foreign Bank and Financial Accounts (FBARs) is Oct. 15, 2021. Filers missing the April 15 annual FBAR due date earlier this year received an automatic extension until Oct. 15 to file their … Read More
A business may be able to claim a federal income tax deduction for a theft loss. But does embezzlement count as theft? In most cases it does but you’ll have to substantiate the loss. A recent U.S. Tax Court decision illustrates how that’s sometimes difficult to do. Basic rules for theft losses The tax code … Read More
Treasury Secretary Janet Yellen is urging Congress to consider an international plan as it writes new tax laws. Recently, 134 countries and jurisdictions (including the U.S.) have signed on to the Organization for Economic Cooperation and Development plan for reforming international tax rules. It provides countries with a fairer distribution of profits and taxing rights … Read More
The IRS has issued guidance to employers about reporting on Form W-2 the amount of qualified sick and family leave wages paid to employees for leave taken in 2021. Notice 2021-53 provides guidance under legislation passed in 2020 and 2021 about tax credits to help employers during the COVID-19 pandemic. Employers will be required to … Read More
Many homeowners across the country have seen their home values increase recently. According to the National Association of Realtors, the median price of homes sold in July of 2021 rose 17.8% over July of 2020. The median home price was $411,200 in the Northeast, $275,300 in the Midwest, $305,200 in the South and $508,300 in … Read More
The IRS has faced harsh operational challenges from the pandemic. Reduced staff, closed IRS centers and delayed due dates for tax returns and reports resulted in a daunting backlog. The Treasury Inspector General for Tax Administration (TIGTA) recently assessed the impact of these issues on the IRS and businesses. By year-end 2020, nearly 8 million … Read More
With most tax planning, there are certain strategies that are generally effective and shouldn’t be ignored. The same holds true for estate planning. Here are three essential estate planning strategies to consider that may help you achieve your goals. 1. Use an ILIT to hold life insurance Do you own an insurance policy on your … Read More