Questions About the Employee Retention Credit? We’ve Got Answers.

Originally part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Employee Retention Credit (ERC) is one important way in which the federal government is helping businesses affected by the pandemic. The ERC provides refundable payroll tax credits to qualifying businesses as part of an effort to incentivize businesses to keep their workers [...]

2021-08-31T08:41:45-05:00August 24th, 2021|BUSINESS TAX, COVID-19, SMALL BUSINESS|

Time to Pivot? How Your CPA Can Help You Adapt to a Changing Environment  

Owning a business means handling your share of curve balls. There’s always something that changes the dynamics of doing business — a shift in customer demographics, regulatory changes, or even a once-in-a-lifetime global pandemic. Whether it’s the way you connect to potential customers, how you serve them, or even the basic premise of what you’re [...]

Tax Considerations for Buyers Contemplating Mergers & Acquisitions

When contemplating a merger or acquisition, buyers assess a variety of items about the target entity, such as internal controls, quality of customers, accounting practices, financials, projected growth, and so much more. What many buyers may not know is that mergers and acquisitions (M&As) also have a slew of tax ramifications that, if not handled [...]

2021-06-21T12:01:12-05:00June 21st, 2021|BUSINESS TAX, BUSINESS TRANSACTIONS|

COVID-19 Vaccination and Recovery Paid Leave Qualifies for Sick Leave Credit

With the federal quarterly payroll tax deadline right around the corner, keep in mind that your business or nonprofit might qualify for tax credits to reimburse the cost of providing sick and family leave to employees due to COVID-19, including for vaccination. The American Rescue Plan Act (ARPA), passed in March of 2021, made refundable [...]

2021-06-23T14:35:02-05:00June 18th, 2021|BUSINESS TAX, COVID-19, SMALL BUSINESS|

Taking a Fresh Look at Bankruptcy

Oh, the shame of bankruptcy. It’s a negative action that caps off a failure — or so we often think of it. But do we really need to treat bankruptcy as something awful? In the fiscal year ending June 30, 2020, U.S. courts saw 682,363 business and non-business bankruptcy cases. The factors that drive a [...]

IRS Clarifies Temporary 100% Deduction for Restaurant-Purchased Meals

The Treasury Department and the IRS have issued clarifying guidance that allows businesses a temporary 100% deduction for food or beverages from restaurants. The rules regarding deductibility of meals and entertainment expenses have changed considerably in the past few years, beginning with new limitations imposed by the Tax Cuts and Jobs Act (TCJA) of 2017. [...]

2021-05-10T12:44:21-05:00May 10th, 2021|BUSINESS TAX, SMALL BUSINESS|

Hired Any Recently Unemployed Workers? Let Them Know About New Exclusion of Unemployment Compensation

Your business’s employees who were unemployed for part of 2020 will be pleased to know that a portion of that income might not be taxable at the federal level — and possibly at the state level, as well. The American Rescue Plan, enacted on March 11, 2021, allows individuals with modified adjusted gross income (AGI) [...]

2021-05-12T09:20:59-05:00May 5th, 2021|BUSINESS TAX, COVID-19|

Five Overlooked Tax Breaks for Contractors and Manufacturers

2020 was full of changes for those in the manufacturing and construction sectors, but a few things held steady, even throughout the pandemic. The following five tax breaks are not new, but they can help manufacturers and contractors better manage fiscal uncertainties as they head further into the 2021 tax year. Cost Segregation Studies Cost [...]

IRS Provides Guidance on Cafeteria Plan Balance Carryovers

Recent guidance from the IRS has provided greater flexibility to employee benefit plans that offer health flexible spending accounts (FSAs) or dependent care assistance programs. Several provisions in the Consolidated Appropriations Act, 2020, which was enacted in late December of 2020, gave these plans additional discretion in 2021 and 2022 to adjust their programs to [...]

2021-03-24T12:51:41-05:00March 24th, 2021|BUSINESS TAX|

U.S. Treasury and IRS Postpone Individual Income Tax Filing Deadline

Updated 3.17.2021 With the ever-changing environment surrounding the Coronavirus pandemic, the U.S. Treasury announced that the tax filing deadline for individuals of April 15, 2021, will be pushed back to May 17, 2021. This will allow taxpayers additional time to gather materials and file their taxes in the midst of the COVID-19 pandemic. It is [...]

2021-03-17T17:04:13-05:00March 17th, 2021|BUSINESS TAX, COVID-19, INDIVIDUAL TAX, STATE & LOCAL TAX|

Congrats, Your PPP Loan Was Forgiven! … Now How Do You Report It?

Three cheers for PPP loans! The Paycheck Protection Program (PPP), a federal initiative, has provided a lifeline to millions of small businesses as they've struggled through the COVID-19 pandemic. Though its rollout was not perfect, the program has helped keep doors open and workers employed. Its importance in keeping the economy trudging along can't be [...]

2021-04-23T10:59:45-05:00March 15th, 2021|BUSINESS TAX, COVID-19|

How to Spot Three Common Tax Scams

Tax season is also scamming season — although many tax scams continue year-round. Fortunately, if you familiarize yourself with some of the more common schemes and understand what the IRS will and won’t do, it’s easy to avoid them. How to Spot Common Tax Scams Tax scams can be complex and widely varied, but they’re [...]

2021-03-15T08:13:16-05:00March 12th, 2021|BUSINESS TAX|

Don’t Jeopardize Your S Corporation Status

You likely chose S corporation status (or are considering making an S election) because it represents the best of both corporate and partnership worlds, combining the liability protection of a corporation with many of the tax benefits of a partnership. But these benefits come at a price, and maintaining S status requires some due diligence. [...]

2021-03-12T12:01:35-06:00March 12th, 2021|BUSINESS TAX|

When Can You Deduct Data Breach Costs?

Cybersecurity routinely tops the charts as one of business owners’ most pressing concerns. Data loss can obstruct day-to-day operations, put a stain on the company’s public standing, and be quite costly, but business owners should also be aware of how data loss and its prevention can impact their tax liability. Tax Implications of Data Breach [...]

2021-03-08T13:07:44-06:00March 8th, 2021|BUSINESS TAX, CYBERSECURITY|

Boost Your Cash Flow with Net Operating Loss Carrybacks

The U.S. Tax Code offers few “quick fixes” for businesses that are short on cash, but the recent revival of net operating loss (NOL) carrybacks might be one of them. NOL carrybacks are only permitted for a short time, but by taking advantage of them while you can, your business may be able to secure [...]

Federal Tax Filing Deadline Extended for All 254 Texas Counties

As a result of the recent winter storm, the IRS announced on February 22, 2021, that residents of all Texas counties and/or taxpayers who have a business in Texas would generally have until June 15, 2021, to file and pay their federal income tax. This extension includes income tax returns due on March 15 and [...]

2021-02-24T15:31:38-06:00February 23rd, 2021|BUSINESS TAX, DISASTER RECOVERY, INDIVIDUAL TAX|

Make Corporate Disaster Relief Contributions by Feb. 25 to Take Increased Deduction Limit

Corporations’ disaster relief contributions made before February 25, 2021, may qualify for a new 100% limit. Under the Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted December 27, the limit for contributions paid in cash for relief efforts in qualified disaster areas has been temporarily increased to 100% of a corporation's taxable income. The [...]

2021-02-19T11:47:49-06:00February 19th, 2021|BUSINESS TAX|

Exempt Organizations: IRS Issues Final Rules on 21% Excise Tax on Excess Compensation

The IRS has issued final regulations under Internal Revenue Code Section 4960 regarding the 21% excise tax on excess executive compensation paid by certain tax-exempt organizations, such as nonprofit hospitals. The excise tax applies to an applicable tax-exempt organization (ATEO) that pays a covered employee more than $1 million in remuneration during a year or [...]

2021-02-12T11:04:27-06:00February 12th, 2021|BUSINESS TAX, INDIVIDUAL TAX|

Shutting Down a Business? Updated Resources Available from IRS

As the COVID-19 pandemic continues to threaten the lives and livelihoods of people around the world, many entrepreneurs are realizing that they will have to close some operations in order to focus efforts on the businesses most likely to outlast the pandemic. With so many American businesses facing the need to wind down, the IRS [...]

2021-01-08T12:24:03-06:00January 8th, 2021|BUSINESS TAX|

New COVID-19 Relief Provisions for Individuals and Businesses

In the waning days of 2020, the latest of a series of COVID relief provisions were signed into law. This most recent round of stimulus and tax relief was tied to the Consolidated Appropriation Act. Not only does this bill provide additional economic aid in response to the pandemic, but it also avoids a federal [...]

2021-01-06T07:47:14-06:00December 30th, 2020|BUSINESS TAX, COVID-19, INDIVIDUAL TAX|