Clarification for business taxpayers: Payments under state or local tax credit programs may be deductible as business expenses

IR-2018-178, Sept. 5, 2018 WASHINGTON — Business taxpayers who make business-related payments to charities or government entities for which the taxpayers receive state or local tax credits can generally deduct the payments as business expenses, the Internal Revenue Service said today. Responding to taxpayer inquiries, the IRS clarified that this general deductibility rule is unaffected…

Virginia Tax Credits

Making the most of available tax credits is a key component in any plan for minimizing tax liabilities.  Remember, tax credits are much more valuable than deductions because they reduce the amount of tax owed on a dollar-for-dollar basis.  Did you know that Virginia has numerous tax credits in place to help their residents and…

Do your employees need a paycheck check-up?

IR-2018-145, June 28, 2018 Taxpayers who owed additional tax when they filed their 2017 federal tax return earlier this year can avoid another unexpected tax bill next year by doing a “paycheck checkup” as soon as possible, according to the Internal Revenue Service. The Tax Cuts and Jobs Act, the tax reform legislation passed in…

IRS issues guidance on small business accounting method changes under Tax Cuts and Jobs Act

R-2018-160, Aug. 3, 2018 WASHINGTON – The Internal Revenue Service issued guidance today on new tax law changes that allow small business taxpayers with average annual gross earnings of $25 million or less in the prior three-year period to use the cash method of accounting. The Revenue Procedure outlines the process that eligible small business…

Detecting and Preventing Accounts Payable Fraud

To a criminal exploring ways to steal from a business, the accounts payable department often looks like the equivalent of a poorly guarded cashbox. Any time money exits a business, it flows through accounts payable. At most companies, that makes this function the most vulnerable and attractive opportunity for thieves both inside and outside the…

EEOC Pushes Back 2017 EEO-1 Report Deadline to June 1

Certain Employers Must Submit Report The U.S. Equal Employment Opportunity Commission (EEOC) has pushed back the deadline for required entities to submit their 2017 EEO-1 report to June 1, 2018. Previously, the deadline was March 31, 2018. As a reminder, private employers with 100 or more employees and federal government contractors or first-tier subcontractors with…

FAQs on Paid Family and Medical Leave Tax Credit Released

The Internal Revenue Service has released FAQs on the Paid Family and Medical Leave Tax Credit, which certain employers can soon claim based on wages paid to employees on family and medical leave. The tax credit is effective for tax years 2018 and 2019. Among other questions, the FAQs answer: Which employers can claim the…

The fine line between a small business and a hobby

It’s a matter of work vs. fun, right? No, the difference, at least from a tax perspective, is that you can fully deduct business expenses from income.  Under the new tax law you can’t deduct any hobby expenses. No single factor is determinative, but you’re probably operating a business if: You have a profit motive.…

Tax Help Available Ahead of April 17 Filing Deadline

IRS.gov Offers Many Easy-to-Use Online Tools With the April 17 federal income tax deadline fast approaching, the Internal Revenue Service (IRS) is reminding taxpayers that they can find most answers to their tax questions by taking advantage of the wide variety of easy-to-use online tools available on IRS.gov. The IRS’s many online tools allow taxpayers…

IRS updates withholding calculator and Form W-4 for new tax law

The Internal Revenue Service released the updated withholding calculator and Form W-4 that it had promised for the new tax law to help taxpayers make sure they have the proper amount of taxes taken out of their paychecks. The IRS is urging taxpayers to use both tools to check on their withholding. “Following the major…