Beware Aggressive Employee Retention Credit “Mills”

On October 4, 2022 / Accounting Tips, Business Tips, Tax

To help small businesses keep employees on their payroll during the pandemic, Congress introduced the Employee Retention Credit (ERC) in 2020, which is a tax credit that can be claimed on the quarterly payroll tax reports. Since its inception, additional laws have modified the qualifications, and it

Short-Term Capital Gains vs. Long-Term Capital Gains – What’s the Difference?

On September 9, 2021 / Tax

Have you ever wondered why gains are separated between long-term and short-term when you receive your 1099 at tax time? There is a very good reason for that, and one you might want to consider more carefully when investing. Short-term capital gains are derived if you hold

The American Rescue Plan Act Creates ERTC Windfall for Startup Businesses

On August 12, 2021 / Tax

The American Rescue Plan Act extended the Employee Retention Tax Credit (ERTC) for the third and fourth quarters of 2021. It has also expanded the pool of eligible employers who can take the credit to include businesses started during the pandemic. A Recovery Startup Business (RSB) is

Child Tax Credit Payouts – What to Expect

On July 15, 2021 / Tax

The Child Tax Credit (CTC) is not new, but it was expanded as part of the American Rescue Plan Act of 2021, and you may be wondering what that means and how it will impact your situation. The biggest takeaway is that instead of waiting until filing

Requesting a Private Letter Ruling

On June 17, 2021 / Blog, Tax

You may someday find yourself in a unique tax situation and want to remove any uncertainty of the tax treatment of that situation. In that case, you can request a Private Letter Ruling (PLR) from the Internal Revenue Service. A PLR is a written statement that interprets

Business Meal Deduction Changes from the Consolidated Appropriations Act

On May 20, 2021 / Blog, Tax

The Consolidated Appropriations Act that was signed into law December 27, 2020 includes a temporary provision allowing a 100 percent write-off for business meals from January 1, 2021 through December 31, 2022. The food and beverages must be provided by a restaurant, although they do not need

Partner Capital Accounts Required to be Reported on Tax Basis for 2020

On April 22, 2021 / Blog, Tax

In response to the Tax Cuts and Jobs Acts of 2017, there were a number of changes to the disclosure requirements for partnerships and LLCs filing as partnerships – specifically, on the K-1s of Form 1065 returns, some of which became effective for the 2019 tax year.

What is the Difference Between Your Marginal Tax Rate and Your Effective Tax Rate?

On March 25, 2021 / Tax

Have you heard the phrases “marginal tax rate” (or tax bracket) and “effective tax rate” and wondered what the distinction is between them? In order to explain the difference, it is first important to note that in the United States, we do not pay a flat tax

Tax Deadline Extended for SOME but NOT ALL Tax Returns and Payments

On March 19, 2021 / News, Tax

The IRS announced a change in the deadline for certain federal tax return and payment due dates. Here is what is extended as of this posting (March 19, 2021): 2020 Individual 1040 returns are now due May 17, 2021 2020 Individual 1040 tax payments are now due

Do Nonprofits Ever Pay Taxes?

On February 25, 2021 / Tax

When you think about a nonprofit, the first thing that often comes to mind is that it is tax-exempt. Most nonprofits are not subject to federal, state, and local income tax. Does that mean nonprofits are completely free of ANY tax liability? The answer to this is

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