• Auditing concepts: Close-up on materiality

      As audit season begins for calendar-year entities, it’s important to review issues that may arise during fieldwork. One common issue is materiality. This concept is used to determine what’s important enough to be included in — and what can be omitted from — a financial statement. Here’s how materiality is determined and used during an external financial statement audit. What is materiality? Under U.S. [...]

    Published On: February 8, 2024Categories: Business, Featured
  • Disaster Deadline is approaching!

    The IRS is reminding certain disaster victims of a fast-approaching deadline on Feb.15, 2024. Those affected by federally declared disasters that occurred in 2023 between Aug. 8 and Oct. 9 were granted extra time to file their 2022 tax returns, but not extra time to pay taxes due. Among those disasters were Hurricane Lee, Hurricane Idalia and the wildfires in Hawaii. Generally, when the Federal [...]

    Published On: February 7, 2024Categories: Federal Tax Posts
  • The IRS unveils ERTC relief program for employers

    Since July 2023, the IRS has taken a series of actions in response to what it has termed a “flood of ineligible claims” for the Employee Retention Tax Credit (ERTC). Most recently, it launched a Voluntary Disclosure Program (VDP). The program presents a valuable, but temporary, opportunity for eligible employers. Flood of invalid ERTC claims The ERTC is a refundable tax credit intended for businesses that [...]

    Published On: February 7, 2024Categories: ETRA
  • 6 tips to improve job-costing systems

    Companies that work on customer-specific or long-term projects — such as homebuilders, contractors, custom manufacturers and professional practices — generally track job costs to gauge the profitability of each project. In turn, this helps them bid future projects. Unfortunately, the job-costing process tends to be cumbersome, causing some expenses to inadvertently fall through the cracks instead of being allocated properly. Here are six tips to [...]

    Published On: February 7, 2024Categories: Business, Featured
  • Will it pass in the Senate?

    Coming on the heels of its recent passage of the proposed Tax Relief for American Families and Workers Act, the U.S. House of Representatives may soon vote on another tax-related bill, the SALT Marriage Penalty Elimination Act. It addresses the state and local tax (SALT) deduction, which was capped at $10,000 by the Tax Cuts and Jobs Act. The bill would increase the deduction for [...]

    Published On: February 6, 2024Categories: Federal Tax Posts
  • 2024 tax calendar

      To help you make sure you don’t miss any important 2024 deadlines, we’ve provided this summary of when various tax-related forms, payments and other actions are due. Please review the calendar and let us know if you have any questions about the deadlines or would like assistance in meeting them. © 2024  

    Published On: February 6, 2024Categories: ETRA
  • Businesses: Do you have to comply with the new corporate transparency reporting rules?

      Your business may soon have to meet new reporting requirements that take effect on January 1, 2024. Under the Corporate Transparency Act (CTA), enacted in 2021, certain companies will be required to provide information related to their “beneficial owners” — the individuals who ultimately own or control the company — to the Financial Crimes Enforcement Network (FinCEN). Failure to do so may result in civil or [...]

    Published On: February 6, 2024Categories: ETRA
  • Inventory management systems: What’s right for your business?

      If your business has significant inventory on its balance sheet, it can be costly. The carrying costs of inventory include warehousing, salaries, insurance, taxes, and transportation, as well as depreciation and shrinkage. Plus, tying up working capital in inventory detracts from other strategic investment opportunities. Reducing these costs can help improve a company’s profits and boost operating cash flow. Here are two alternative inventory [...]

    Published On: February 6, 2024Categories: Business, Featured
  • Got independent contractors? Get to know Form W-9

      If your not-for-profit is perpetually shorthanded, you may have decided to engage independent contractors or freelancers to pick up some of the slack. Just make sure you’re collecting the right information from these individuals and filing it with the IRS. Clean paperwork now can save you a lot of headaches — including tax penalties — later. W-9 rules When engaging an independent contractor, obtain that person’s [...]

    Published On: January 22, 2024Categories: Featured, Not for Profit
  • Does your business have employees who get tips? You may qualify for a tax credit

      If you’re an employer with a business where tipping is routine when providing food and beverages, you may qualify for a federal tax credit involving the Social Security and Medicare (FICA) taxes that you pay on your employees’ tip income. Credit fundamentals The FICA credit applies to tips that your staff members receive from customers when they buy food and beverages. It doesn’t matter [...]

    Published On: January 21, 2024Categories: Featured, Small Business Tax
  • Going global: How your nonprofit can navigate potential obstacles

      If your not-for-profit’s 2024 plans include international expansion, take care. Rules that apply to U.S.-based nonprofit activities — such as soliciting donations, recruiting members, hiring employees and selling products — often are different overseas. You need to make sure the desire for your services or products is robust enough in your target countries to justify the costs of operating in them. Ask questions and research [...]

    Published On: January 21, 2024Categories: Featured, Not for Profit
  • Defer a current tax bill with a like-kind exchange

      If you’re interested in selling commercial or investment real estate that has appreciated significantly, one way to defer a tax bill on the gain is with a Section 1031 “like-kind” exchange. With this transaction, you exchange the property rather than sell it. Although the real estate market has been tough recently in some locations, there are still profitable opportunities (with high resulting tax bills) when [...]

    Published On: January 20, 2024Categories: Featured, Small Business Tax
  • When are sponsorship and advertising payments subject to tax?

      Sponsorship and advertising dollars can provide a real boost to your not-for-profit organization’s income. However, if sponsors or advertisers receive a “substantial benefit” or if providing benefits isn’t a related business activity, you may owe unrelated business income tax (UBIT) on the payments. Here’s a quick look at what is and isn’t taxable. UBIT typically doesn’t apply to sponsorships Sponsorship dollars generally aren’t taxed. [...]

    Published On: January 20, 2024Categories: Featured, Not for Profit
  • The standard business mileage rate will be going up slightly in 2024

    The optional standard mileage rate used to calculate the deductible cost of operating an automobile for business will be going up by 1.5 cents per mile in 2024. The IRS recently announced that the cents-per-mile rate for the business use of a car, van, pickup or panel truck will be 67 cents (up from 65.5 cents for 2023). The increased tax deduction partly reflects the price of [...]

    Published On: January 19, 2024Categories: Featured, Small Business Tax