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Business Travel Deductions: What Has Changed?

2019 – 11/27 The Tax Cuts and Jobs Act (TCJA) resulted in changes for some business travelers. The IRS has issued guidance in Revenue Procedure 2019-48 for these travelers and their employers to clarify the changes. The TCJA suspended the miscellaneous itemized deduction employees could take for unreimbursed expenses, but self-employed persons and certain employees…

Does Your Charity Qualify for a Tax Deduction?

2019 – 11/26 As the holidays near, many taxpayers are thinking about how they want to “give back” and donate to charities. An IRS tool lets taxpayers learn if the organizations they donate to qualify for a tax deduction. The “Tax Exempt Organization Search” allows users to search for qualified tax-exempt charities. The tool provides…

The Cost of Tax Errors

2019 – 11/26 Tax errors can be costly for small businesses. Accidentally failing to comply with tax laws, violating tax codes, or filling out forms incorrectly can leave taxpayers and their businesses open to possible penalties. According to the IRS, the most common errors by small businesses include underpaying estimated taxes and depositing employment taxes…

Gift and Estate Tax Exemption

2019 – 11/25 Final IRS regulations address the exemption amount allowable when computing federal gift and estate taxes. The Tax Cuts and Jobs Act nearly doubled the gift and estate tax exemption to an inflation-adjusted $10 million beginning after Dec. 31, 2017, and before Jan. 1, 2026. (The exemption will revert to $5 million on…

IRS Scam Alert

2019 – 11/22 In certain cases, the IRS is required to use private debt collection agencies (PCAs) to collect the amounts owed. The IRS wants the public to be aware that, with identity theft heating up, scammers pretending to be from PCAs are placing random calls, demanding payment from unsuspecting taxpayers. Here’s what you need…

Tax Incentives for Charitable Contributions

2019 – 11/19 Due to changes in the Tax Cuts and Jobs Act, the Washington, D.C.-based Tax Policy Center estimates that only 9% of taxpayers will now receive a tax deduction for charitable contributions. The Center has published a chartbook titled “Tax Incentives for Charitable Contributions.” It evaluates the implications of alternative income tax incentives…

Keeping Track of Partner Basis: Why It Is Important?

2019 – 11/26 Keeping track of “basis” in partnership interest is important.  Because of the pass-through nature of partnerships (i.e., only the partners are taxed on partnership operations), a method is needed to account for (1) costs in acquiring the partnership interest, (2) annual contributions and distributions, and (3) how partnership profits and losses are allocated. …

2 valuable year-end tax-saving tools for your business

2019 – 11/25 At this time of year, many business owners ask if there’s anything they can do to save tax for the year. Under current tax law, there are two valuable depreciation-related tax breaks that may help your business reduce its 2019 tax liability. To benefit from these deductions, you must buy eligible machinery,…

Bridging the gap between budgeting and risk management

2019 – 11/25 At many companies, a wide gap exists between the budgeting process and risk management. Failing to consider major threats could leave you vulnerable to high-impact hits to your budget if one or more of these dangers materialize. Here are some common types of risks to research, assess and incorporate into adjustments to…

Mileage Rates & The Tax Cuts and Jobs Act

2019 – 11/15 The Tax Cuts and Jobs Act suspended miscellaneous itemized deductions for tax years beginning after Dec. 31, 2017, and before Jan. 1, 2026. To reflect the change, the IRS has updated rules for using standard mileage rates when computing the deductible costs of operating an automobile for business purposes. Revenue Procedure 2019-46…

Recordkeeping for Small Business Owners

2019 – 11/14 Careful recordkeeping is one key to success for small business owners. A good system of maintaining records leads to better decision making. It helps business owners monitor business progress; prepare financial statements; identify income sources; track expenses; support items on tax returns; and more. Small business owners are free to use the…

Social Security Mismatch Letters: Round Two

2019 – 11/14 Problems arise when data reported on a W-2 form doesn’t match data held by the Social Security Administration (SSA). Wages and taxes paid can’t be credited to the right wage earner. To fix errors, the SSA regularly notifies employers when mismatches occur in the name and Social Security number on a W-2,…

Interactive Tax Assistant

2019 – 11/13 The IRS is encouraging taxpayers to use its “Interactive Tax Assistant” tool, which provides basic information on a wide range of tax topics. Topics are organized by category, such as the Affordable Care Act; filing requirements, forms to use and due dates; and filing status, dependents and exemptions. Other topics include pensions,…

IRS Targets Transition Tax in Audit Campaign

2019 – 11/12 The IRS Large Business and International (LB&I) division has announced that it will begin targeting compliance with a transition tax in one of its new audit campaigns. The initiative involves Section 965, which was added by the Tax Cuts and Jobs Act. Under Sec. 965, U.S. shareholders are required to pay a…

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