Category: Taxation-Corporate

The 2023 tax season may require an additional level of patience for business owners filing for credits from pass-through entities (PTE). Maryland has seen a growing number of PTE filings the past few years. This increased workload coupled with administrative hurdles within the Comptroller’s office, has led to several cases of inaccurate returns and longer-than-expected processing delays. The Comptroller of Maryland sent a letter to tax professionals detailing the office’s struggles and offering solutions including asking tax filers for help…. Read more ›

Recent IRS warnings and announcements regarding the Employee Retention Tax Credit (ERTC) have raised some businesses’ concerns about the validity of their claims for this valuable, but complex, pandemic-related credit — and the potential consequences of an invalid claim. CBM has helped many clients file claims when they met the approved criteria requirements. However, we also recognize that many businesses not working with a reputable tax professional may have been misled by fraudulent parties into believing they were eligible to… Read more ›

On Wednesday October 11th, Microsoft announced it had received a $28.9 billion dollar bill for unpaid taxes between 2004 and 2013. The case shed light on the complexities and challenges of international taxation, and it serves as a cautionary tale for businesses looking to avoid similar tax penalties. Understanding Microsoft’s Tax Bill The $29 billion in unpaid taxes stemmed from an IRS audit into Microsoft’s 2004 to 2013 finances. The IRS investigation began after an unusually structured manufacturing facility in… Read more ›

Challenge A stonemasonry business encountered significant tax liabilities due to its use of the accrual method of accounting. Because the business was a C corporation and the 2017 Tax Cuts and Jobs Act offered opportunities for tax relief to organizations such as theirs, the owners reached out to CBM’s construction and real estate team for assistance. Solutions CBM’s team was familiar with the tenets of the Tax Cuts and Jobs Act due to having assisted several other businesses and advised… Read more ›

In the face of a flood of illegitimate claims for the Employee Retention Tax Credit (ERTC), the IRS has imposed an immediate moratorium through at least the end of 2023 on processing new claims for the credit. The reason the IRS cites for the move is the risk of honest small business owners being scammed by unscrupulous promoters who submit questionable claims on their behalf. The Fraud Problem The ERTC is a refundable tax credit intended for businesses that 1) continued paying… Read more ›

Summer isn’t just for barbeques and baseball. It’s also a good time to think about ways to cut your 2023 business tax bill. Here are four planning ideas for small business owners to consider, assuming there won’t be any changes to current federal tax laws at least through 2024. 1. Establish a Tax-Favored Retirement Plan If your business doesn’t already have a retirement plan, now might be the time to take the plunge. Current rules allow for significant annual deductible… Read more ›

Are you fully leveraging the opportunities that the rise of electric vehicles (EVs) offers? As an auto dealer, understanding this industry shift, particularly the role of federal tax incentives like EV tax credits, can be a game-changer for your dealership. Let’s dive into how mastering the nuances of EV credits can maximize your profitability. Seize the Opportunity: EV Tax Credits and Your Dealership In a bid to promote sustainable transportation, the U.S. government offers federal EV tax credits ranging from… Read more ›

A business valuation report is the complex process of and set of procedures used to estimate the economic value of a business. This economic value can be used to make financial decisions or determine the outcome of a major business event. In industries subject to constant change, such as construction, this can be a life saver for the company’s economic wellbeing. Ideally, an industry-recognized valuation expert—such as a certified valuation analyst—who has experience working with construction businesses with their taxes,… Read more ›

In the construction industry, supply-chain challenges are nothing new. They’ve just gotten much more media attention over the last few years. Increased globalization, a pandemic and geopolitical strife have all contributed to some notable slowdowns, though things have generally been better lately. One way that construction companies can mitigate supply-chain problems is to maintain their own inventories of various building materials, products and supplies. However, an inventory can also complicate tax planning. Here are three big issues to consider. 1…. Read more ›

In response to the COVID-19 pandemic, the federal government provided several options for tax relief for businesses and tax-exempt groups, one of which was the employee retention tax credit (ERC). Some scammers, unfortunately, have stirred the attention of the IRS by aggressively misleading unsuspecting employers into thinking they are eligible to receive the credit and, as a result, manipulating them into submitting false, ineligible claims. The IRS has emphasized that organizations that improperly submit a claim for the ERC may… Read more ›