Too often, people planning their estates focus on tax and asset-protection issues and overlook long-term health care needs. But the high cost of long-term care (LTC) can quickly devour resources you need to maintain your lifestyle during retirement and provide for your children or other heirs after your death. Here are a few insurance options … Read More
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
The IRS, the U.S. Department of Labor and the Pension Benefit Guaranty Corporation jointly announced a notice of proposed revisions to the Form 5500 Annual Return/Report filed for employee pension and welfare benefit plans. The proposals are intended to implement changes to the Form 5500 annual reporting under the SECURE Act, which was enacted in … Read More
In the first half of 2021, there was a surge in financial restatements. The reason relates to guidance issued by the Securities and Exchange Commission, requiring special purpose acquisition companies (SPACs) to report warrants as liabilities. SPACs are shell corporations that are listed on a stock exchange with the purpose of acquiring a private company, … Read More
The U.S. House is likely to miss its Sept. 27 deadline to vote on the $1 trillion infrastructure bill. Because the House Budget Committee won’t begin marking up the $3.5 trillion Build Back Better Act budget reconciliation bill this week as planned, the Senate-approved infrastructure package won’t be ready for a House floor vote by … Read More
Generally, individuals who claim the standard deduction on their tax returns can’t deduct charitable contributions. But for 2021, the Taxpayer Certainty and Disaster Tax extended parts of an earlier law that allowed individuals to claim charitable contributions up to $300 for 2020. Those who file married joint returns may claim up to $600 for 2021. … Read More
In order to prepare for a business audit, an IRS examiner generally does research about the specific industry and issues on the taxpayer’s return. Examiners may use IRS “Audit Techniques Guides (ATGs).” A little-known secret is that these guides are available to the public on the IRS website. In other words, your business can use … Read More
U.S. Senate Finance Committee Chair Ron Wyden (D-OR) unveiled draft tax legislation for proposals being discussed in Congress. According to a press release, the law would close loopholes that allow rich investors and mega-corporations to use pass-through entities, primarily partnerships, to reduce their tax bills. Wyden stated that “70% of partnership income accrues to the … Read More
If you’re a business owner and you’re getting a divorce, tax issues can complicate matters. Your business ownership interest is one of your biggest personal assets and in many cases, your marital property will include all or part of it. Tax-free property transfers You can generally divide most assets, including cash and business ownership interests, … Read More
Federal tax relief is now available to Hurricane Ida victims in parts of Pennsylvania. They now have until Jan. 3, 2022, to file various individual and business tax returns and make tax payments. The IRS has also provided relief to Hurricane Ida victims in Louisiana, Mississippi, New Jersey and New York. The IRS is offering … Read More