Deciding between cash and accrual accounting methods

April 12, 2022By Smeriglio Associates LLCNews

Small businesses may start off using the cash-basis method of accounting. But many eventually convert to accrual-basis reporting to conform with U.S. Generally Accepted Accounting Principles (GAAP). Which method is right for you? Cash method Under the cash method, companies recognize revenue as customers pay invoices and expenses when they pay bills. As a result, … Read More

2022 – 03/30 – Securing a Strong Retirement Act of 2022

April 11, 2022By Smeriglio Associates LLCNews

Why aren’t more Americans saving enough for retirement? The Senate Health, Education, Labor and Pensions Committee is examining that question. The committee points to a General Accountability Office report that found some companies offered workers lump-sum buyouts without providing them with information needed to make good decisions. Another report said that nearly 40% of 401(k) … Read More

Establish a tax-favored retirement plan

April 11, 2022By Smeriglio Associates LLCNews

If your business doesn’t already have a retirement plan, now might be a good time to take the plunge. Current retirement plan rules allow for significant tax-deductible contributions. For example, if you’re self-employed and set up a SEP-IRA, you can contribute up to 20% of your self-employment earnings, with a maximum contribution of $61,000 for … Read More

IRS: COVID-19 Related Tax Breaks

April 9, 2022By Smeriglio Associates LLCNews

Is your organization passing up COVID-19 related tax breaks? Possibly. Even as the pandemic wanes, Sec. 139 of the Internal Revenue Code remains in effect. It allows employees to exclude from gross income payments made by employers to cover “reasonable” personal, family, living or funeral expenses related to COVID-19 (and other declared disasters). However, employers … Read More

IRS: Form 990 or Form 5500

April 8, 2022By Smeriglio Associates LLCNews

As the IRS continues to work through a backlog of unprocessed returns, Congress and tax professionals have pressured it to stop sending delinquent return and collection notices. Many taxpayers receiving such notices have already filed tax returns but the IRS hasn’t processed them yet. On March 25, the IRS announced it will temporarily suspend the … Read More

Securing a Strong Retirement Act

April 7, 2022By Smeriglio Associates LLCNews

The Securing a Strong Retirement Act, a bipartisan bill intended to increase retirement savings and simplify retirement plan rules, is set to receive a full vote by the U.S. House of Representatives the week of March 28. It’s often referred to as SECURE 2.0, which references the 2019 SECURE Act that made numerous retirement plan … Read More

IRS: Crowdfunding Taxable Income

April 6, 2022By Smeriglio Associates LLCNews

Using websites such as GoFundMe or Kickstarter is an easy way to raise money over the internet from a large group of people. Often referred to as “crowdfunding,” it may be used to fund business ideas, help families pay medical bills or raise money for charity. Bear in mind that the income raised by crowdfunding … Read More