Our Financial Blog
ICYMI- Huge Increase in Scam Texts – Don’t Be a Victim
Taxpayers should be aware of the recent increase in IRS-themed texting scams aimed at stealing personal and financial information. So far in 2022, the IRS has identified thousands of fraudulent domains tied to multiple texting scams (known as smishing) targeting...
IRS Finds a Cure for the “Family Glitch”
Background - The Affordable Care Act (ACA) – also referred to as Obamacare) was enacted over 12 years ago, and one of its main features was the creation of government marketplaces (sometimes called exchanges) where Americans could purchase their health insurance if...
Choosing a unique Identity Protection PIN adds extra safety for taxpayers
As part of a broader effort to increase security, the Internal Revenue Service and the Security Summit partners reminded taxpayers they could get extra protection starting in January by joining the agency's Identity Protection Personal Identification Number (IP PIN)...
IRS issues standard mileage rates for 2023; business use increases 3 cents per mile
The Internal Revenue Service today issued the 2023 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving...
Interest rates increase for the first quarter of 2023
The Internal Revenue Service announced that interest rates will increase for the calendar quarter beginning January 1, 2023. For individuals, the rate for overpayments and underpayments will be 7% per year, compounded daily, up from 6% for the quarter that began on...
IRS announces delay for implementation of $600 reporting threshold for third-party payment platforms’ Forms 1099-K
The Internal Revenue Service announced a delay in reporting thresholds for third-party settlement organizations set to take effect for the upcoming tax filing season. As a result of this delay, third-party settlement organizations will not be required to report tax...
The IRS Achieves a 90% Conviction Rate, or: “Why You Shouldn’t Cheat on Your Taxes”
There's an old saying that reminds us that there are only two certainties in this life: "death, and taxes." Whoever coined that phrase couldn't have known how true it was, particularly when it comes to the latter portion. The Internal Revenue Service recently came out...
Cashflow Best Practices For Your Startup to Use During a Recession and Beyond
Experts agree that a recession in both the United States and Europe is likely just on the horizon. Recessions can be stressful and uncertain times for even the strongest businesses out there - to say nothing of how difficult they can make things for younger and...
IRS releases frequently asked questions about energy efficient home improvements and residential clean energy property credits
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Year End Tax Planning Issues
Before you become distracted with the seasonal celebrations, it may be in your best interest to consider year-end tax moves that can benefit you for both 2022 and 2023. Having the Congressional members preoccupied with the November mid-term elections has sidelined, at...
Ways To Save on Your Taxes If You are Laid Off
If you've been following the news recently, you're no doubt aware of a massive round of layoffs that struck one of the most popular social media sites in existence, Twitter. Under the direction of new owner Elon Musk, it was estimated that as many as 3,700 people lost...
Virginia Interest Rates Change for the First Quarter
Virginia's interest rates will change for the first quarter of 2023. The underpayment and overpayment rates for Virginia taxes are 2% higher than the corresponding federal rates. Federal rates for the first quarter of 2023 will be 7% for tax underpayments...
The Tax Consequences of Closing Your Small Business
The possibility of a recession looms large. According to one recent study, approximately 20% of all small businesses that open their doors today will close within the first year. Of the number that survives, about 30% will close just one year later. By year five,...
Managing Gains and Losses in a Turbulent Year
It's been a rough Fall for the stock market. So much so that you should probably carefully review your portfolio and other capital transactions to minimize gain or maximize losses for the year. Remember, capital gains and losses are not just limited to stock...
IRS Plans On Targeting Abusive ERTC Claims
Have you seen those ads on television or received email solicitations promoting a large tax credit? The large tax credit they are referring to is the employee retention tax credit (ERTC). The ERTC is a government-sponsored program to keep workers employed during 2020...
Get Ready for taxes: What’s new and what to consider when filing in 2023
For a full list of changes, please see our blog post: https://methodcpa.com/2022-tax-changes/ The Internal Revenue Service encouraged taxpayers to take important actions this month to help them file their 2022 federal tax returns. This is the second in a series of...
Your Annual Reminder to File Worker 1099s
This is our annual reminder that if you use workers other than employees to perform services for your business and pay them $600 or more for the year, you are required to issue each one a Form 1099-NEC after the end of the year to avoid facing the loss of the...
Tax Consequences of Employee Holiday Gifts
It is common practice this time of year for employers to give their employees gifts. Where a gift is infrequently offered and has a fair market value so low that it is impractical and unreasonable to account for it, the gift’s value would be treated as a de minimis...
IRS Unveils Retirement Plans Inflation Adjustments for 2023
Are you ignoring your future retirement needs? That tends to happen when you are younger, retirement is far in the future, and you believe you have plenty of time to save for it. Some people ignore the issue until late in life and then have to scramble at the last...
Important Info for People Considering Making Early Withdraws From Retirement Funds
No matter how much people plan, unexpected events occur. Often, those events result in unplanned expenses. To cover these costs sometimes people, withdraw funds from their retirement savings early. While this may seem like an easy way to get cash quick, early...