IRS: Amended Return Processing

March 12, 2020By Smeriglio Associates LLCNews

What if you file your federal tax return and then realize you made a mistake? According to the IRS, the answer depends on the mistake. If the error is mathematical, there’s a good chance it will be caught during the processing and corrected by the IRS. But if you chose the wrong filing status, need … Read More

How taxes affect your nonprofit’s donors

March 11, 2020By Smeriglio Associates LLCNews

The deductibility of most charitable gifts hasn’t changed since passage of the Tax Cuts and Jobs Act, but some recordkeeping requirements have. Helping your donors who itemize deductions understand the rules and benefits of their gifts can strengthen your not-for-profit’s ties with them — and may help increase contributions. Allowable deductions Generally, donors can deduct … Read More

Government Accountability Audit of Campaign Finance Law

March 11, 2020By Smeriglio Associates LLCNews

A new Government Accountability Office report looks at campaign finance law. It identifies impermissible levels of political campaign intervention by tax-exempt organizations and the outcomes of IRS enforcement efforts. In fiscal years 2010 through 2017, the IRS conducted and closed 226 examinations related to organizations’ non-compliant political campaign intervention. More than half of the examinations … Read More

How do Dependents Affect Federal Income Taxes?

March 10, 2020By Smeriglio Associates LLCNews

How do dependents affect federal income taxes? The Congressional Budget Office recently issued a report (https://bit.ly/3bbJarM  ) on this topic. It analyzed tax return data under 2019 tax rules and compared it with the rules that are scheduled to be in place for 2026. It estimated that the average tax benefit per dependent for 2019 … Read More

Getting help with a business interruption insurance claim

March 9, 2020By Smeriglio Associates LLCNews

To guard against natural disasters and other calamities, many companies buy business interruption insurance. These policies provide cash flow to cover revenues lost and expenses incurred while normal operations are limited or suspended. But buying coverage is one thing — making a claim and receiving the funds is quite another. Depending on the scope of … Read More

Standard or Itemized Deduction?

March 9, 2020By Smeriglio Associates LLCNews

What’s best for you, taking the standard deduction or claiming itemized deductions? The standard deduction changes yearly and is based on age and filing status. The Tax Cuts and Jobs Act raised the standard deduction so that more people could benefit from its simplicity. Itemizing deductions requires more work, but taxpayers can save taxes if … Read More

IRS: Personal Use of Employer-Provided Vehicles

March 8, 2020By Smeriglio Associates LLCNews

The IRS has issued final regulations on the personal use of employer-provided vehicles. Specifically, the final regs explain the special valuation rules to use in determining the amount to include in an employee’s gross income for personal use of an employer-provided vehicle. The regs update the fleet-average and cents-per-mile valuation rules to align the limitations … Read More

IRS: Tax-Exempt Organizational Status Electronic

March 7, 2020By Smeriglio Associates LLCNews

The application for tax-exempt organizational status goes fully electronic. Starting January 31, but with a grace period until April 30, the IRS will require applicants to file electronically “Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code.” The required fee for Form 1023 will remain $600 for 2020.  Call … Read More