IRS: Listed Property Costs

November 19, 2020By Smeriglio Associates LLCNews

Generally, a taxpayer can deduct costs incurred in the course of operating a business if the costs can be proven. This includes costs for “listed property” (property used for transportation, entertainment or recreation). To prove business use of listed property, taxpayers must keep adequate records of total use and business use, plus dates and the … Read More

How to minimize turnover in your accounting department

November 18, 2020By Smeriglio Associates LLCNews

The demand for qualified accounting and finance personnel has grown, as business owners struggle to manage unpredictable cash flows, increased costs, and new government policies and financial aid packages. Plus, the potential job market for these professionals has expanded, thanks to technological changes that now allow them to transcend geographic boundaries and work from virtually … Read More

IRS: Expatriate Support

November 18, 2020By Smeriglio Associates LLCNews

The IRS needs better enforcement of the tax rules imposed on those giving up or abandoning their U.S. citizen or resident status, said one report. A Treasury Inspector General for Tax Administration (TIGTA) audit found that from 2008 to 2018, the number of expatriates rose greatly. Yet the IRS didn’t have “a centralized compliance effort … Read More

Preparing for the possibility of a remote audit

November 17, 2020By Smeriglio Associates LLCNews

The coming audit season might be much different than seasons of yore. As many companies continue to operate remotely during the COVID-19 pandemic, audit procedures are being adjusted accordingly. Here’s what might change as auditors work on your company’s 2020 year-end financial statements. Eye on technology Fortunately, when the pandemic hit, many accounting firms already … Read More

Should you go phishing with your employees?

November 16, 2020By Smeriglio Associates LLCNews

Every business owner is aware of the threat posed by cybercriminals. If a hacker were to gain access to the sensitive data about your business, customers or employees, the damage to your reputation and profitability could be severe. You’re also probably aware of the specific danger of “phishing.” This is when a fraudster sends a … Read More

IRS: Refund Penalty for Excessive Amount

November 16, 2020By Smeriglio Associates LLCNews

The statute of limitations doesn’t affect an excessive refund claim penalty, according to IRS guidance. If a taxpayer makes a claim for a refund or income credit in an “excessive amount,” he or she is generally liable for a penalty equal to 20% of that sum. In one case, a taxpayer filed a return more … Read More

IRS: Assistance for Debts

November 14, 2020By Smeriglio Associates LLCNews

One economic effect of the COVID-19 pandemic has been mounting unpaid tax. “The IRS understands that many taxpayers face challenges, and we’re working hard to help people facing issues paying their tax bills,” said IRS Commissioner Chuck Rettig. To make it easier for taxpayers to settle their IRS tax debts, the agency has made some … Read More

Flexible Spending Account Reminder

November 13, 2020By Smeriglio Associates LLCNews

Do you have a Flexible Spending Account (FSA) with your employer? Make sure to take full advantage of it this year and in the new year. For 2021, the contribution limit remains at $2,750 (unchanged from 2020). If an employer permits, employees can carry over up to $550 of unused funds into 2022 (the carryover … Read More

IRS: 2021 Long Term Capital Gains Rate Bracket

November 12, 2020By Smeriglio Associates LLCNews

The IRS has issued the 2021 long-term capital gains rate bracket numbers. The maximum income required to qualify for the 0% bracket will be $40,400 for single taxpayers, $80,800 for married taxpayers filing jointly and $54,100 for heads of households. For the 15% bracket the maximum income will be $445,850 for single filers, $501,600 for … Read More