The Interplay Between IRC Sections 174 and 41
There have been many uncertainties and questions regarding the treatment of Internal Revenue Code (IRC) 41, Credit for Increasing Research Activities, as changes to IRC 174, Amortization of Research and Experimental Expenditures, came into play in tax year 2022. ...
2024 IRS Inflation Adjustments for Individual Taxpayers
The IRS has announced the annual inflation adjustments for more than 60 tax provisions for tax year 2024. This includes updates to tax rate schedules and other tax changes, as detailed in Revenue Procedure 2023-34: The 2024 Standard Deduction is increased shown in...
15 Things to Consider Before the End of 2023
Now is the time to implement year-end tax planning strategies to mitigate tax liabilities for 2023. Below are our top tax planning strategies to consider: 1. Charitable Contributions Consider lumping 2 years of planned charitable contributions into one year to take...
Erroneously Filed ERC Claims – How to Withdrawal Your Claim To Avoid Penalties
On September 14, 2023 the IRS announced a pause in accepting any new Employee Retention Credit (ERC) claims through the end of 2023 due to the large number of highly questionable ERC claims filed. There were a number of aggressive service providers who mislead...
Health Savings Accounts
With increasing medical costs for both insurance premiums and copays, individuals look for alleviation through income tax deductions. Health Savings Accounts (HSAs) are considered one of the most tax advantaged strategies in the current tax code. If you qualify to...
Mandatory Capitalization of R&D Expenditures in 2022 and Beyond
The Tax Cuts and Jobs Act of 2017 (TCJA) requires capitalization of all specified research and experimental expenditures (SR&E) incurred in tax years beginning after December 31, 2021. On September 8, 2023, the IRS released Notice 2023-63 notifying taxpayers of...
California SALT Cap Workaround (AB 150)
The Tax Cuts and Jobs Act (TCJA) passed in late 2017 put a $10,000 limit on the amount of state and local taxes (SALT) individuals could subtract as itemized deductions. As a workaround, many states have enacted legislation to allow certain pass-through entities...
Update: IRS Sets New R&D Credit Documentation Requirements For Credit Refund Claims
On January 3, 2022, the Internal Revenue Service (IRS) Office of Chief Counsel released Interim Guidance stating that taxpayers will be required to include additional documentation for a research credit claim for refund to be considered valid. Specifically, the new...
Top 5 Things Small Business Can Do to Reduce End of Year Tax Liabilities
It’s that time of year again! No, we are not referring to the holidays, but time to review your company’s tax situation, identify tax saving opportunities, and implement strategies before year-end to maximize cash flow. Here are our top 5 things small businesses can...
I’ve Inherited an IRA; Now What Do I Do?
The loss of a family member is difficult to deal with emotionally but handling the logistics of the inheritance and paperwork can be overwhelming. Inheriting an Individual Retirement Account (IRA) now comes with new strict rules and guidelines which every beneficiary...