Do You Need to Amend Your 2020 Tax Return for the 2020 ERC?

Question I know that the IRS requires that I amend the 2020 tax return for my 2020 Employee Retention Credit (ERC). Here’s the deal: I don’t have the credit yet. And as you know, the IRS stopped processing ERC claims from September 14, 2023, through at least December 31, 2023. My claim was filed during […]

Helicopter View of 2023 Meals and Entertainment

The article discusses changes to the business meal deduction for the year 2023 and beyond. As of now, the deduction for business meals is only 50 percent—a significant change from the previous 100 percent deduction for business meals in and from restaurants, which was applicable only for the years 2021 and 2022. Additionally, many business-generating […]

Big Tax Changes To Know for 2023

Alert: A Massive New FinCEN Filing Requirement Is Coming The Corporate Transparency Act (CTA) is a new law passed in 2021 that requires corporations, LLCs, and other business entities to provide information about their owners to the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). The CTA did not take effect immediately. Rather, Congress […]

$80 Billion to the IRS: What It Means for You

For the business owner and tax practitioner, the most important part of the Inflation Reduction Act of 2022 was not the tax credit for flashy new electric cars. It was something much more basic: a long-term budget commitment to help the struggling, failing IRS. The Inflation Reduction Act invests an additional $80 billion in the […]

IRS Says Your Independent Contractors Are Employees: Use the CSP

Uh-oh! The IRS audited your business and concluded that you misclassified some workers as independent contractors. The IRS says they are employees. You are worried—rightfully worried. If you got this wrong, the IRS will assess years of back employment taxes, plus penalties and interest. The dollar amounts can be huge. This is the second in […]

Home-Office Deduction If You Operate as a Corporation

Question What does the IRS audit manual say about the home office for an individual who operates his or her business as a corporation? Answer You will be interested in two boilerplate explanations from the Internal Revenue Manual that examiners use to explain why the IRS is denying the home-office deduction:1 We [the IRS] have […]

Health Savings Accounts: The Ultimate Retirement Account

Looking to save for retirement? The first account you should open and fund is not an IRA (regular or Roth) or 401(k). If you qualify, your first retirement account should be a Health Savings Account (HSA). Don’t let the name fool you.The HSA may be the ultimate retirement account. Not looking to save for retirement? […]

New Hope for Restoring and Fixing the Employee Retention Credit

As you may remember, two bad things happened to the Employee Retention Credit (ERC): On November 15, 2021, Congress retroactively repealed the ERC for the fourth quarter of 2021(except for start-up businesses). On August 4, 2021, the IRS issued the clearly irrational Notice 2021-49 stating that a corporateowner with certain living relatives does not qualify […]

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