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IRS Receives $80 Billion for Improvements

2022 – 08/18 The Inflation Reduction Act (IRA) provides about $80 billion over 10 years to fund the IRS and improve its “tax enforcement activities” and technology. The funds will be available to the IRS through Sept. 30, 2031. With the funds, the IRS plans to hire nearly 87,000 personnel to help with tax-law enforcement…

The Inflation Reduction Act

2022 – 08/17 The Inflation Reduction Act was signed into law by President Biden on Aug. 16. The bill comes with a price tag of $740 billion and imposes a new 15% minimum tax on large, profitable corporations. It also adds a 1% excise tax on stock buybacks. Other revenue would come from more enforcement…

IRS Fraud Detection

2022 08/17 Is the IRS successfully combatting business identity theft? The Treasury Inspector General for Tax Administration (TIGTA) recently took a look. In an audit, TIGTA reported that progress is being made by using filters to detect potential fraud, plus conducting prompt reviews of business tax returns with high-dollar refunds. However, it added: “TIGTA continues…

Key aspects of a successful wellness program

2022 – 08/17 Wellness programs have found a place in many companies’ health care benefits packages, but it hasn’t been easy. Because these programs take many different shapes and sizes, they can be challenging to design, implement and maintain. There’s also the not-so-small matter of compliance: The federal government regulates wellness programs in various ways,…

Affordable Care Act Update

2022 – 08/02 The Affordable Care Act’s (ACA’s) affordability percentage for employers to avoid a shared responsibility payment (penalty) is decreasing in 2023. The ACA’s employer-shared responsibility provision requires applicable large employers to offer minimum essential coverage that’s “affordable” and that provides “minimum value” to full-time employees or potentially make an employer-shared responsibility payment to…

How to Spot an IRS Scammer

2022 – 08/01 Can you spot a fake IRS employee? Many people tremble at the thought of hearing from the IRS. That fear can make them vulnerable to scams that seek to steal their assets or identities. To combat IRS impersonator scams, the IRS has created a fact sheet explaining how it contacts taxpayers. The…

How to treat business website costs for tax purposes

2022 – 08/01 These days, most businesses have websites. But surprisingly, the IRS hasn’t issued formal guidance on when website costs can be deducted. Fortunately, established rules that generally apply to the deductibility of business costs provide business taxpayers launching a website with some guidance as to the proper treatment of the costs. Plus, businesses…

Independent Contractor Compensation Reporting

2022 – 07/27 Businesses must withhold employment taxes from employees’ wages and report the wages and the taxes withheld to the IRS. But the reporting obligations for workers who aren’t employees can be trickier. While a business isn’t responsible for withholding employment taxes from nonemployee (or independent contractor) compensation, a business that pays more than…

6 steps to easing employees’ fears about innovation

2022 – 07/27 Business owners often find the greatest obstacle to innovation isn’t the change itself, but employees’ resistance to it. Their hesitation or outright defiance is frequently driven by fear. Some workers might worry about how the innovation will alter their jobs — or whether it will even eliminate their positions. Others could reject…

Three tax breaks for small businesses

2022 – 07/25 Sometimes, bigger isn’t better: Your small- or medium-sized business may be eligible for some tax breaks that aren’t available to larger businesses. Here are some examples. 1. QBI deduction For 2018 through 2025, the qualified business income (QBI) deduction is available to eligible individuals, trusts and estates. But it’s not available to…

How to keep remote sales on point

2022 – 07/20 The pandemic has dramatically affected the way people interact and do business. Your company likely undertook various changes to adapt to the initial lockdowns and the ongoing public health guidance over the past two years. An interesting byproduct of the crisis is that it created a somewhat involuntary experiment in remote work….

What Taxes do Gig Workers Pay?

2022 – 07/18 If you’re a “gig worker” or freelancer, your tax obligations are different from an employee’s. You’re considered self-employed, so clients don’t withhold taxes from your payments. But even if they don’t send you information returns (such as Form 1099-K), you owe tax on that income. Gig workers may have to pay quarterly…

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