Accumulated Earnings Tax on “C” Corporations
If you run your business through a regular “C” corporation, beware of the accumulated earnings tax (AET). The IRS can use the AET to penalize C corporations that retain earnings in the business rather than pay them to shareholders as taxable dividends. To retain earnings, the C corporation first pays the corporate tax of 21 […]
Claim Up to 32,220 in Missed 2021 Self-Employed COVID-19 Sick and Family Leave Credits Today
Were you self-employed during 2021? If so, there is a good chance that you could have qualified for COVID-19 sick and family leave credits worth as much as $32,220. If you’re like many self-employed individuals or partners, you probably never heard about these tax credits. Unlike employee retention credit for employers, the special temporary credits […]
Qualified Improvement Property
Taxpayers who own commercial real estate often perform renovations or improvements to the interior portion of their buildings. These expenditures may create an opportunity for significant tax savings. The Tax Cuts and Jobs Act along with a technical correction under the Coronavirus Aid Relief and Economic Security Act (CARES), created a special category of property […]
Changes to 401K audit requirements
Most 401k Plans must file some version of a Form 5500 annually. This form provides information to both the federal government as well as plan participants. In February 2023, the U.S. Department of Labor and the IRS announced changes to the Form 5500 under the requirements of ERISA (Employment Retirement Income Security Act) section 103(a)(3)(C). […]
What is Form 8879 and why you should sign?
Many of our clients wonder what is form 8879, do I need to sign this form and why does my spouse need to sign as well? The importance of form 8879 has often been overlooked. This is the final step to electronically file a tax return, but an important step. Let’s take a look at […]
Buy/Sell Agreements: Navigating Ownership Transitions
What is a Buy/Sell Agreement? In many aspects, a buy/sell agreement functions akin to an individual’s Will. It defines the process of transferring business interests. This legal agreement can be integrated into the organization’s bylaws or stand-alone. The intricacies involved in buying and selling a business interest in closely held non-public enterprises resemble the complexities […]
Employee Retention Credit: Major IRS Focus for Fraudulent Claims
Employee Retention Credit (ERC) Fraud Claims – During 2023, the IRS has made increasing efforts to prevent fraudulent claims by small businesses for Employee Retention Tax Credits (ERC). In July 2023, the IRS shifted its focus to reviewing ERC claims to ensure it complied with rules and regulations for qualifying to claim the credit. They […]
Beneficial Ownership Reporting Under the Corporate Transparency Act
What is the Corporate Transparency Act Beginning January 1, 2024, many small businesses will be required to report information about their owners to the federal government. The reporting is new and affects virtually all small businesses. In 2021, Congress passed the Corporate Transparency Act (CTA) as part of a government initiative to fight against corruption, […]
Use qualified auditors for your employee benefit plans
Employee benefit plans with 100 or more participants must generally provide an audit report when filing IRS Form 5500 each year. Plan administrators have fiduciary responsibilities to hire independent qualified public accountants to perform quality audits. Select a Qualified Auditor ERISA guidelines require employee benefit plan auditors to be licensed or certified public accountants. They […]
Raising Capital? Audited or Reviewed Financials are Essential
A clear and accurate understanding of your financial health is paramount in the current lending environment, where decisions can make or break an enterprise. Thus, the importance of audited or, at a bare minimum, reviewed financials. While many businesses might consider these processes formalities, they hold significant significance beyond compliance. In this blog, we’ll explore […]