New IRS Warnings on Employee Retention Credit
Just when you thought COVID-era tax breaks were in the past, you get a call from a “tax advisor” who tells you that you may have overlooked a beneficial Employee Retention Credit (ERC) opportunity. But don’t worry, it’s not too late! For an upfront fee or a fee contingent on the amount of the refund, […]
Are Texas Business Inventory Tax Changes Ahead?
We’ll soon find out if Texas lawmakers are on board with lowering the state’s notable inventory tax bill for small businesses. Texas lawmakers are contemplating a record-breaking budget surplus of nearly $33 billion. Most agree that tax cuts are in order—but now they must decide where those cuts should be focused. (Of course, they’re at […]
Don’t Leave R&D Tax Breaks on the Table
If you’re a business owner, there’s no doubt you’ve spent time and money creating better processes, materials, or solutions for your customers. Those activities can lead to big tax breaks, but the IRS won’t go out of its way to spell that out for you. For whatever reason, research and development (R&D) tax breaks are […]
Who Elects Married Filing Separately & Why?
Should you elect married filing separately on your tax returns? The truth is only about 2% of married couples do so. For a select few, however, the election can be quite beneficial. Most married couples can and should file jointly. The IRS itself states that “in almost all instances, if you file separate returns, you […]
Responding to an IRS Letter
The IRS just made it easier to respond to a handful of tax notices online, which presents an excellent opportunity to review what a letter from the IRS could mean and how you should respond to each. Hint: You should always give your CPA a heads-up before responding. The IRS still relies heavily on U.S. […]
Awaiting a Tax Refund in 2023?
If you got used to receiving a tax refund in recent years, don’t hold your breath for the same this tax season. While the IRS is better staffed and equipped this year for prompt refunds, pandemic benefits that sweetened the deal have now expired. CBS News reports that the average tax refund in 2022 (for […]
529 Rollovers to Roth IRAs Coming Soon
Starting in 2024, you can rollover old, unused 529 funds into a Roth IRA as a way to avoid taxes and penalties on the money if it turns out you didn’t need it for a student’s education after all. The change is part of the SECURE 2.0 Act, which, under Section 126, will allow tax-free […]
Worker Misclassification Changes Are Resurfacing
The federal government is again working on final changes to its independent contractor guidelines. Getting this sticky area wrong can hold dire consequences with potential litigation, fines, fees, and, of course, back taxes. Employee classification can be a fast-changing, confusing area of business and tax law—especially if you hire workers across state lines. The rule […]
Investment Losses and Tax-Loss Harvesting
You win some, you lose some—that’s the nature of investing. But when it comes to paying taxes, you might be able to turn an investment loss into a tax win through tax-loss harvesting. It’s certainly a volatile time for investing. U.S. stocks and bonds were down in the same year at the same time, which […]
New Domestic Filing Exception (DFE) for Partnerships & S Corps
New instructions for schedules K-2 and K-3 are out. The big change is a Domestic Filing Exception (DFE) that, in theory, makes it easier to file if all partners/owners qualify. The DFE is designed to reduce the complexity and time associated with preparing and filing Form 1065 for partnerships and Form 1120-S for S Corps. […]