Can investors who manage their own portfolios deduct related expenses?

September 28, 2020By Smeriglio Associates LLCNews

In some cases, investors have significant related expenses, such as the cost of subscriptions to financial periodicals and clerical expenses. Are they tax deductible? Under the Tax Cut and Jobs Act, these expenses aren’t deductible through 2025 if they’re considered expenses for the production of income. But they are deductible if they’re considered trade or … Read More

IRS: Revisiting the Dependent Definition

September 26, 2020By Smeriglio Associates LLCNews

How does the tax code define “dependent” for tax purposes? The IRS has finalized the definition based on changes brought by the Tax Cuts and Jobs Act (TCJA) for tax years 2018 through 2025. The definition of dependent includes a qualifying relative who meets two tests. The “income test” is met if the individual receives … Read More

IRS announces per diem rates for business travel

September 25, 2020By Smeriglio Associates LLCNews

In Notice 2020-71, the IRS recently announced per diem rates that can be used to substantiate the amount of business expenses incurred for travel away from home on or after October 1, 2020. Employers using these rates to set per diem allowances can treat the amount of certain categories of travel expenses as substantiated without … Read More

IRS: E-signature Detection

September 25, 2020By Smeriglio Associates LLCNews

The IRS is criticized for not catching fraudulent e-signatures, according to one report. An audit by the Treasury Inspector General for Tax Administration (TIGTA) found that while some fraudulent authorizations (such as Power of Attorney forms) were detected, many weren’t. A sample turned up 11 unverified signatures, which affected 1,546 Taxpayer ID numbers that TIGTA … Read More

Weighing the risks vs. rewards of a mezzanine loan

September 24, 2020By Smeriglio Associates LLCNews

To say that most small to midsize businesses have at least considered taking out a loan this year would probably be an understatement. The economic impact of the COVID-19 pandemic has lowered many companies’ revenue but may have also opened opportunities for others to expand or pivot into more profitable areas. If your company needs … Read More

Employers have questions and concerns about deferring employees’ Social Security taxes

September 22, 2020By Smeriglio Associates LLCNews

The IRS has provided guidance to employers regarding the recent presidential action to allow employers to defer the withholding, deposit and payment of certain payroll tax obligations. The three-page guidance in Notice 2020-65 was issued to implement President Trump’s executive memorandum signed on August 8. Private employers still have questions and concerns about whether, and how, … Read More

TIGTA: IRS Systems Report

September 22, 2020By Smeriglio Associates LLCNews

The Treasury Inspector General for Tax Administration (TIGTA) said in an audit that the accuracy of Currency Transaction Report (CTR) data in IRS systems must be improved to ensure its usefulness in compliance activities. The IRS regularly imports CTR data from the Financial Crimes Enforcement Network (FinCEN). Financial institutions are required to file CTRs with … Read More