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On December 23, 2020, the IRS and Treasury released an advance copy of final regulations to provide guidance for small business taxpayers to implement several simplifying exemptions enacted by the 2017 tax reform legislation known as the Tax Cuts and Jobs Act (TCJA); the regulations were published in the Federal Register on January 5, 2021. These simplifying provisions include the use of the overall cash method of accounting, as well as exemptions from inventory methods under Internal Revenue Code Section 471, from uniform capitalization rules under Section 263A (UNICAP) and from the use of the percentage-of-completion method for certain long-term construction contracts under Section 460. A qualifying small business taxpayer is also exempt from Section 163(j), which limits the deductibility of business interest expense.
The final regulations make several changes to the proposed regulations released on July 20, 2020.
This article summarizes some of the key highlights of the final rules.
2020 presented organizations with a wide range of challenges that threaten their survival, from COVID-19 to the ensuing economic recession. While financial challenges have been particularly difficult for many entities, increases in government funding have helped organizations weather this particular storm. However, federal aid comes with challenges of its own—this year, many organizations, including both nonprofits and for-profits, will find themselves subject to a Single Audit for the first time.
Whether it’s your first time preparing for a Single Audit or you’ve had extensive experience, the process can appear overwhelming and confusing. To help you find your feet, we’ve put together a FAQ that will put you on the road to understanding your Single Audit requirements and what you need to do to prepare.
As audit committees weigh the practical challenges of accounting, reporting and disclosing the impacts of COVID-19, the following series of questions are designed to assist audit committees in execution of their oversight roles and responsibilities to ensure the performance of high-quality audits and issuance of transparent and reliable financial reporting.
This article provides important questions Audit Committees should considered in 2021.
Taxpayer who is an eligible educator can deduct up to $250 for 2020 and 2021 for certain unreimbursed classroom expenses as an adjustment to income on Line 10, Schedule 1 of Form 1040 or Form 1040-SR. For spouses who file a joint return and are both eligible educators, the maximum deduction is $500 for 2020 and 2021, however, neither spouse can deduct more than $250 of his or her own qualified expenses.
This article advises what can be account in this deduction.
Don’t take a break from good internet security practices when you are working away from the office. Use these tips and questions to stay secure and find success when your organization provides the option to work remotely. Your IT staff can provide further guidance as needed.
This article provides practical tips to up your internet security while working from home.
Did you resolve to pay bills on time in 2021? Here’s how QuickBooks can help.
Managing your paper bills manually is a dangerous practice. It’s too easy to lose them, for one thing, and it’s impossible to keep all of those vendors and amounts in your head. Even if you keep them in a safe place, how do you track their due dates? You can write them on a paper calendar, but it’s easy to miss them considering everything else that is probably scribbled there.
So what’s the solution? You need a system that will keep you from paying bills late, which can lead to finance charges and bad relationships with your vendors.
QuickBooks provides that. You can enter bills as they come in and designate them as paid when you send the check or authorize a credit card payment or bank transfer. Besides making these records available, the software offers other ways to stay informed about the status of your accounts payable, through its Bill Tracker and assorted reports.
We’ll look at how QuickBooks helps you enter bills.
Sometimes, you have to spend money on your customers. Make sure you’re billing them for it.
Usually, money flows from your customers to your business. But there may be times when you have to purchase items for a job whose costs will eventually be reimbursed. Or you, or an employee, might spend time providing services for customers and get paid for those hours by your company before you receive payment from the responsible party. If you’re a sole proprietor with no payroll and no reserves, of course, you just have to wait to be paid for your work.
In the first two cases, you’re spending money upfront that will eventually be paid back. In all three cases, QuickBooks Online calls these billable expenses and billable time, and it does a good job of tracking these transactions – much better than if you were scribbling notes on a receipt or a paper timecard.
Obviously, you want to be paid for these expenditures as soon as possible to minimize their impact on your own cash flow. So QuickBooks Online “reminds” you that they need to be billed when you create an invoice for a customer. It also offers reports that help you track unbilled time and expenses.
Here’s how it works.
Marvin and Company, P.C. is excited to announce the promotion of six employees and congratulates four employees for their recent anniversaries. All these staff members provide unique skills to our clients. They go above and beyond for their coworkers and clients and we could not be happier to have them on our team.
Tax identity theft is a serious issue for the IRS as fraudsters continue to find new ways to steal taxpayers’ Social Security numbers and other personal information to file false tax returns. According to a 2019 U.S. Government Accounting Office report, the IRS estimates it unwittingly paid at least $110 million in fraudulent tax refunds in 2017. The growing problem of tax identity theft affects both taxpayers and tax professionals who prepare returns for their clients.
To help fight fraudsters, the IRS created the Identity Protection PIN (IP PIN) to prevent fraudsters from obtaining a tax refund using a stolen Social Security number. It is a six-digit number that is similar to two-factor authentication to require two sources of identification and authorization to file a tax return. Initially, the IP PIN program was available only to professional tax preparers and victims of identity theft, but now the IRS is expanding the program to all taxpayers who apply for it.
This articles explains how the IRS is expanding its Identity PIN Program to all taxpayers to help eliminate tax refund fraud schemes.