Our Financial Blog
Common Family Tax Mistakes
When it comes to transactions between family members, the tax laws are frequently overlooked, if not outright trampled upon. The following are some commonly encountered situations and the tax ramifications associated with each. Renting to a Relative – When a taxpayer...
Reminder: backup withholding payment deadlines are coming soon
Businesses or other payers required to take backup withholding funds from payments should make sure they have a few upcoming filing deadlines on their calendar.Backup withholding can apply to most kinds of payments reported on Forms 1099 and W-2G. There are, however,...
IRS Free File launch aims to save taxpayers hard-earned dollars
The Internal Revenue Service’s Free File Guided Tax Preparation service is live and ready for taxpayers to use. Free File went live Jan. 13, 2023, 10 days prior to the 2023 filing season start date. The IRS started accepting individual tax returns on Jan. 23. IRS Free...
Understanding Tax-Deferred Investing
When you are attempting to defer the taxability of a capital gain, save money for your children’s future education or plan your retirement finances, you may do so in several ways, including investing in the stock market, buying real estate for income and appreciation,...
How to Manage Your Money During a Recession
According to one recent study, the probability of the United States experiencing a recession in the next year hit 96% in October 2022. If you needed a single statistic to outline the importance of paying attention to what is going on with the economy on a regular...
Looking Ahead to 2023 Taxes
Now is the time to take a look at the changes that will impact your 2023 tax return when you file it in 2024. Keeping up with the constantly changing tax laws can help you get the most benefit out of the laws and minimize your taxes. Many tax parameters, such as the...
Tax basics: Understanding the difference between standard and itemized deductions
One of the first decisions taxpayers must make when completing a tax return is whether to take the standard deduction or itemize their deductions. There are several factors that can influence a taxpayer’s choice, including changes to their tax situation, any changes...
Important Information for S-Corp Shareholders and Partners of a Partnership
There is an important issue related to filing the 2022 S-corporation (Form 1120-S) and partnership (Form 1065) tax returns that requires the cooperation of the shareholders and partners. Background: The IRS, for the 2021 tax year, without sufficient warning,...
Will the Recently Passed Pension Legislation Affect You?
The President, on December 29, 2022, signed the Consolidated Appropriations Act, 2023, which is the “omnibus spending bill” Congress needed to pass to avoid a government shutdown. That legislation also included the Setting Every Community Up for Retirement...
What Is Business Cash Flow?
As the name suggests, cash flow is a term used to describe the money coming into and out of a business. Cash received - like money being paid to the business from its customers - would be inflow. Cash spent - like the funds being paid to vendor partners and other...
Final 2022 quarterly estimated tax payment due Jan. 17
Many taxpayers make quarterly estimated tax payments during the year to stay current on their taxes, but many who should overlook this step. The Internal Revenue Service urged those who paid too little tax in 2022 to make a fourth quarter payment on or before Jan. 17...
IRS completes automatic corrections of tax year 2020 accounts related to unemployment compensation exclusion; 12 million refunds issued
WASHINGTON – The Internal Revenue Service recently completed the final corrections of tax year 2020 accounts for taxpayers who overpaid their taxes on unemployment compensation they received in 2020. The American Rescue Plan Act of 2021, which became law in March...
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...