Business ID Theft: Is Your Data at Risk?

The IRS and state tax authorities have made significant strides in curbing individual identity theft over the last two years. IRS Focuses on Preventing Business ID Theft "The IRS, state tax agencies and the tax community have worked hard to turn the tide against tax-related identity theft. We're making progress in protecting individuals but we still have more work to do," said IRS Continue Reading

Put your audit in reverse to save sales and use tax

It’s a safe bet that state tax authorities will let you know if you haven’t paid enough sales and use taxes, but what are the odds that you’ll be notified if you’ve paid too much? The chances are slim — so slim that many businesses use reverse audits to find overpayments so they can seek refunds. Take all of your exemptions In most states, businesses are exempt from sales tax on equipment used Continue Reading

Do You Have a Deductible Business Loss or a Nondeductible Hobby Loss?

There's a fine line between businesses and hobbies under the federal tax code. If you engage in an unincorporated sideline — such as a marketing director by day and an artist on the nights and weekends — you may think of that side activity as a business and hope to deduct any losses on your personal tax return. But the IRS may disagree and reclassify the money-losing activity as a Continue Reading

Get Ready Businesses: Some Filing Due Dates Are Changing

Thanks to recent legislation, the due dates have been changed for some information returns and related statements and for some business tax returns. Here's what you need to know. Two Laws Are Responsible for the Changes 1. The Protecting Americans from Tax Hikes (PATH) Act.Enacted on December 18, 2015, the PATH Act extended or made permanent a number of "tax extenders" (provisions Continue Reading

IRS Issues New Regs on Allocating Debt to Partners and LLC Members

On October 5, 2016, the IRS released new temporary and final Section 752 regulations. Sec. 752 of the Internal Revenue Code and related regulations explain how to allocate partnership debt among partners for purposes of calculating the basis of their partnership interests. This calculation determines what's often referred to as the partners' "outside basis" in the partnership (their basis for Continue Reading

Expanded IRS Tax Relief for Hurricane Matthew Victims

Hurricane Matthew victims in much of North Carolina and parts of South Carolina, Georgia and Florida have until March 15, 2017, to file certain individual and business tax returns and make certain tax payments, the IRS announced. This includes an additional filing extension for those with valid extensions that ran out on October 17. The IRS is now offering this expanded relief to any area Continue Reading

IRS Publishes Travel Per Diem Rates for Fiscal Year 2017

Tired of preparing all the documentation needed to support business travel expenses? If your business reimburses employees for actual travel expenses, employees are required to collect receipts as they travel, noting the time, place and business purpose of each expenditure. Then, monthly expense reports must be reviewed and approved by management. Processing delays sometimes happen if Continue Reading

7 Tax-Savvy Ways to Give to Charity

Charitable giving is on the rise. And the momentum is expected to continue, given the natural disasters and human tragedies that have happened in recent months. Highlights of the Giving USA Report A recent report, Giving USA 2016: The Annual Report on Philanthropy for the Year 2015, shows charitable-giving trends based on contributions made by individuals, foundations, estates and Continue Reading

What to Do If You Haven’t Filed Last Year’s Tax Return or Can’t Pay the Bill

Unless you've extended the due date for filing last year's individual federal income tax return to October 17, the filing deadline passed you by in April. What if you didn't extend and you haven't yet filed your Form 1040? And what if you can't pay your tax bill? This article explains how to handle these situations. "I Didn't File but I Don't Owe" Let's say you're certain that you don't owe Continue Reading

New IRS Guidance for Designated Roth Accounts

Does your employer offer a 401(k), 403(b) or governmental 457 plan? If so, you may be able to set up a designated Roth account through your company's plan. Then your Roth account will be allowed to receive designated Roth contributions that are taken out of your salary through so-called "salary-reduction contributions." Here's more on how this strategy works, why it may be advantageous for certain Continue Reading