If President Joe Biden’s revenue proposals (the “green book”) for fiscal year 2022 are passed by Congress, fund managers could be facing increased tax liability. One section in the green book identifies carried interest (or profits interest) as a primary source of income to the investment industry. If passed, carried
If a small business is victimized from inside by embezzlement, the business can generally deduct a theft loss on its tax return for the year of the loss. Under Section165 (a) of the Tax Code, a business may deduct losses sustained during the tax year and not compensated by insurance
Limited liability companies, or LLCs, are a lot like colanders, those perforated bowls used in cooking to strain off liquids. LLCs are pass-through entities that allow profits to “flow through” to the owners. Let’s recap how this works as we address the best ways for LLCs to set aside cash
The child tax credit is unlike other tax benefits and practitioners should educate their clients now to avoid any unpleasant April 15 surprises. The enhanced credit is built on the original child tax credit found in IRC Sec. 24. When paired, the result is a more robust combined credit available
If you are a QuickBooks Online (QBO) user, you know that a foundational feature of QBO is connecting your financial institutions to QBO using bank feeds – usually checking, savings and credit card accounts. The recommended workflow is to pre-enter your transactions into QBO, and when the transactions arrive in
Have your business clients recently discovered they’re liable for communications tax? If so, they’re far from alone. Now, the question is: How will you stay compliant? The answer may not be as simple as you’d initially think. Communications tax can be very different from sales and use tax. And depending
Economic nexus laws are leaping across borders, real money is pouring into the virtual world, and sales tax holidays are causing consternation. Read about all this and more below: To begin with, if sales tax holidays weren’t challenging enough, counties and municipalities aren’t required to participate in Alabama’s sales tax
Because electronic confirmation solutions are available to help CPA firms detect fraud so much more effectively, they can also serve as a deterrent to would-be fraudsters hoping to circumvent the audit confirmation process. Just how pervasive is the problem of fraud in today’s economy? Studies indicate that, on average, a
In the immediate aftermath of a global pandemic, it makes sense that health care is a hot topic. A new presidential administration is making short work of Trump-era health care rollbacks, while at the state level Illinois is seeing a push to make health care more equitable. There are also
Most people’s estates are too small to be charged estate tax. According to the IRS, in 2021, only estates worth over $11.7 million are liable for estate taxes. Many states don’t have an estate tax or inheritance tax for homes or any other assets of a decedent, regardless of their value. However, when