Congratulations, you have been selected for an audit! Those words are as likely as any to cause terror in the unlucky individual who reads them. The IRS may not phrase an invitation to participate in an audit exactly that way, but the gist is unmistakable: You are about to undergo an official examination of your tax return for at least one filing year. What should you do?Read More »
OK, it’s not actually fun. Much to the chagrin of nonprofit leaders, tax-exempt does not mean filing-exempt. Most nonprofit organizations must file Form 990, which is due to the IRS by the 15th day of the 5th month after the close of each fiscal year. A few church-affiliated organizations can escape this annual requirement by applying for an exemption. For everyone else, the best approach is to understand the reporting rules and adopt an organized approach.Read More »
Accurate tax categorization of rental activity is one of the most challenging aspects of annual reporting for many filers. That’s not surprising, given the complex way the IRS treats rental income and expenses. Just two key questions control most tax-related questions regarding rental activities:Read More »
Filing taxes—it’s a complicated ordeal that makes most of us feel grateful for our CPAs. Just turn it over to the tax professionals and skip the whole messy thing, right? There’s just one flaw in the plan: your CPA, no matter how skilled, can only work with the information you provide.Read More »
Americans often refer to April 15 as Tax Day, but for a large number of taxpayers “Tax Day” actually comes more than once a year. Some individuals must file and pay estimated quarterly taxes four times over the course of a year in order to comply with their tax responsibilities.Read More »
“Where is that important document? I’m pretty sure we kept it…” If this sounds all too familiar, you’re not alone. Most organizations struggle with the burden of maintaining all the critical documents they will need to file taxes or complete an audit. And, of course, wondering whether or not you should hold on to a particular record only adds to the difficulty. The new year has just begun, so now is a perfect time to finally get those files in order. This time, though, you’ll have the advantage of knowing exactly what you need to keep.Read More »
You’ve decided to start a business. Congratulations! Now all you need to do is serve your customers and begin raking in the profits, right? Think again, because becoming a business owner entails numerous responsibilities and decisions. One of your first tasks is deciding which type of business structure you want for your new company.Read More »
The sweeping Tax Cuts and Jobs Act of 2017 (TCJA) included a number of changes that affect tax-exempt organizations, including tax treatment of fringe benefits related to transportation and parking expenses. As a result of the updated tax code, many nonprofits could face an increase in unrelated business taxable income (UBTI). Some organizations that until now were not required to file Form 990-T, Exempt Organization Business Income Tax Return, will have to add the form to their mandated reporting.
With the recent tax legislation come changes that affect businesses in every industry. What’s changing? A lot – everything from the tax rates you’ll pay to the deductions you can claim. For government contractors in the construction and manufacturing sectors, TCJA’s impact is mostly positive, although the law is not without costs for these companies. Here’s a look at some of the most significant impacts, both good and bad.