Does your employer provide you with group term life insurance? If so, and if the coverage is higher than $50,000, this employee benefit may create undesirable income tax consequences for you. ‘Phantom Income’ The first $50,000 of group term life insurance coverage that your employer provides is...
Does your business receive large amounts of cash or cash equivalents? You may be required to submit forms to the IRS to report these transactions. Filing Requirements Each person engaged in a trade or business who, in the course of operating, receives more than $10,000 in cash...
COVID-19 is changing the landscape for many schools this fall. While many children and young adults are going back, even if it is just for online learning, some parents will be facing tuition bills. If your child has been awarded a scholarship, that is cause...
If you are a partner in a business, you may have come across a situation that gave you pause. In a given year, you may be taxed on more partnership income than was distributed to you from the partnership in which you are a partner. Why...
If you are planning your estate, or you have recently inherited assets, you may be unsure of the ‘cost’ (or ‘basis’) for tax purposes. Fair Market Value Rules Under the fair market value basis rules (also known as the ‘step-up and step-down’ rules), an heir receives a...
During the COVID-19 pandemic, many small businesses are strapped for cash. They may find it beneficial to barter for goods and services instead of paying cash for them. If your business gets involved in bartering, remember that the fair market value of goods that you...
Did you recently file your federal tax return and were surprised to find you owed money? You might want to change your withholding so that this does not happen next year. You might even want to do that if you got a big refund. Receiving...
There is a new IRS form for business taxpayers that pay or receive nonemployee compensation. Beginning with tax year 2020, payers must complete Form 1099-NEC, ‘Nonemployee Compensation,’ to report any payment of $600 or more to a payee. Why The New Form? Prior to 2020, Form 1099-MISC was...
The tax filing deadline for 2019 tax returns has been extended until July 15 this year, due to the COVID-19 pandemic. After your 2019 tax return has been successfully filed with the IRS, there may still be some issues to keep in mind. Here are...
The extended federal income tax deadline is coming up fast. As you know, the IRS postponed until July 15 the payment and filing deadlines that otherwise would have fallen on or after April 1, 2020 and before July 15. Retroactive COVID-19 Business Relief The Coronavirus Aid, Relief...