Are you ready for year-end? The end of the fiscal year remains one of the most stressful periods for accounting teams. It is when the finance department has to prepare supplier reports, payroll year-end reports, and other financial reports. The accounting staff will take an average of 25 days to prepare the annual closing report. In addition, this period [...]
The Internal Revenue Service (IRS) has granted relief by extending the time for certain taxpayers to file their returns. In addition, there are special rules affecting gain and loss recognition from casualty losses incurred in these Presidential-declared disaster areas. The IRS has issued announcements granting relief to taxpayers impacted by Hurricanes Fiona and Ian. The relief applies to individuals [...]
Notice 2022-36 provides failure-to-file penalty relief for 2019 and 2020 for the Form 1040, Individual Tax Return, Form 1120 Corporate tax return, Form 1065 Partnership Return, and Form 1120-S Subchapter S corporation return. Failure-to-file penalties will be automatically abated for filed tax returns, and the penalty will be refunded or credited if paid. For returns not filed, the tax [...]
President Biden announced a three-part plan to provide more relief to America’s working families as they recover from the impact of COVID-19. President announced new steps to address student loan debt, including forgiving up to $20,000 for millions of borrowers and extending the payment freeze until the end of the year. Borrowers should expect to resume payment in January [...]
The Inflation Reduction Act (IRA) could benefit many small business startups, allowing them to potentially double the amount they can claim on the research and development tax credit from $250,000 to $500,000 per year against payroll taxes. Existing and expired energy efficiency tax incentives, including 179D deductions and 45L credits, have been expanded significantly. Under current law, small businesses that may not [...]
The Inflation Reduction Act (IRA) was introduced last week to help reduce inflation. The bill is estimated to increase net revenues by $304 billion from 2022 to 2031. Tax Provisions The updated draft legislation of the IRA would include the following significant changes, effective beginning after December 31, 2022, unless otherwise stated. The latest proposal does not have some of [...]
Beginning September 25, 2022, the IRS will implement a new process to allow for electronic fingerprinting for tax professional e-file applicants. Tax practitioners will be required to use an IRS-authorized vendor for fingerprinting. Each new Principal and Responsible Official listed on a new e-file application as well as any additional responsible official added to an existing application needing fingerprints must [...]
The IRS on June 9, 2022, announced a mid-year increase in the 2022 standard mileage rates used to calculate the deductible expenses of operating vehicles for business, charitable, medical, or moving purposes. The 2022 standard mileage rates are explained in IRS Announcement 2022-13 and additional details can be found here. Effective July 1, 2022, the standard mileage rates for the [...]
The Pennsylvania House Finance Committee has scheduled a vote for June 7 on House Bill 1709 that allows an elective pass-through entity tax (PTE tax). The bill outlines an elective PTE tax that would provide a federal tax benefit which clarifies the statutory language under which the Department of Revenue (DOR) that currently penalizes Pennsylvania resident partners who elect to pay PTE [...]
By now, most employers are familiar with the Economic Injury Disaster Loan (EIDL) program. This 30-year loan of up to $2 million from the Small Business Administration (SBA) was made available to small business owners who suffered a substantial economic injury due to COVID-19 or were in need of economic disaster relief (note that the EIDL program was not new [...]
