Category: Taxation-Corporate

The Inflation Reduction Act provided the IRS with billions of dollars of additional funding to reduce the so-called “tax gap” between what taxpayers owe and what they actually pay. The tax agency has already launched numerous initiatives aimed at this goal, including several business-related compliance campaigns. Let’s take a closer look at three of the most significant recent targets.  Abusive Pass-through Practices The IRS has accelerated its enforcement efforts against partnerships and other pass-through entities, which it claims have been… Read more ›

It’s never too early to start gathering the necessary information required to prepare and file 1099s for your business. Reminders: Best Practices About Form 1099 from CBM’s Accounting Advisory Team For a smooth and timely 1099 filing season, consider the following best practices: Need assistance? CBM’s Accounting Advisory team supports businesses with accounting and tax preparation expertise. Use our online contact form to contact now to contact Dominick Bellia for guidance or for assistance. Councilor, Buchanan & Mitchell (CBM) is… Read more ›

There is always a cost to doing business and nowhere is this as true as in state and local taxation. Understanding tax requirements plays a crucial role in starting and running a successful business; bringing sufficient know-how to business decision-making should include well-informed tax planning, which affects areas as wide-ranging as the location of your entity and ensuring compliance with all applicable tax agencies to avoid running afoul of legal problems.   Each state and local jurisdiction has its own set… Read more ›

President Biden has released his proposed budget for the 2025 fiscal year, including numerous tax provisions affecting both businesses and individual taxpayers. While most of these provisions have little chance of coming to fruition while the U.S. House of Representatives remains controlled by the Republican Party, they might gain new life depending on the outcome of the November elections. Here’s an overview of the major tax proposals included in the budget. Business Tax Provisions The budget proposal includes many changes… Read more ›

An S corporation is a business structure that allows the passage of taxable income, losses, credits and deductions to shareholders, thereby preventing income from being exposed to the consequences of double taxation at the corporate and individual levels. Although an S corporation benefits from certain tax advantages, it also faces restrictions such as a limit on the number of shareholders – no more than 100. As part of estate planning, some individuals choose to take advantage of the availability of… Read more ›

If the complexity of IRS notices has historically got you scratching your head, you’re not alone. Fortunately, the IRS is addressing this problem with a “Simple Notice Initiative”, a program which will be rolled out in the coming years to improve communications with customers by focusing on: This ambitious project will end up impacting up to 90% of notices distributed by the IRS by the 2025 filing season. It will begin by updating notices commonly distributed to individual taxpayers including… Read more ›

The Internal Revenue Service (IRS) announced significant relief measures for some taxpayers facing penalties on their 2020 and 2021 tax returns. The relief addresses a mishap caused by COVID measures. 4.7 million individuals, businesses and tax-exempt organizations incurred late fees without receiving collection reminders. The IRS will provide $1 billion to settle these penalties or reimburse filers who have already paid their account. Those who qualified will be sent a letter some time this month, no action is needed to… Read more ›

To help you make sure you don’t miss any important 2024 deadlines, Councilor, Buchanan & Mitchell (CBM) provided this summary and pdf copy of when various tax-related forms, payments and other actions are due. Please review the calendar and use our online contact form (link is at the end of this blog) to let us know if you have any questions about the deadlines or need assistance. January 31 February 12 February 15 February 28 March 11 March 15 April… Read more ›

At a Glance: An event management company facing significant net operating loss, turned to CBM for help. CBM utilized the loss and a provision from the CARES Act to lower previous year taxable income and earn the agency a large refund. Challenge: An event management company faced a significant financial setback with a $131,000 net operating loss on their corporate tax return. With the prospect of no future refunds or tax deductions, the company reached out to CBM to determine… Read more ›

Does your business receive large amounts of cash or cash equivalents? If so, you’re generally required to report these transactions to the IRS — and not just on your tax return. Beginning January 1, 2024, this reporting will have to be done electronically. Here are some answers to questions about the requirements and what’s changing. What Is Required? Each person who, in the course of operating a trade or business, receives more than $10,000 in cash in one transaction (or… Read more ›