Category: Taxation-Corporate

  If rising health care costs have sent your company searching for ways to reduce expenses, you should know there are alternatives to standard medical insurance plans. Your choices are not limited to either paying the higher costs yourself or transferring the burden to your employees. Tax-advantaged strategies are available which can mitigate the effect of rising costs for you and your staff members. Here are three ideas to consider. 1. Establish a Health Insurance Premium-Only Plan (POP) This super-simple… Read more ›

Click here to learn more about our tax, accounting and advisory services for attorneys and law firms. The Internal Revenue Code’s self-employment (SE) tax provisions were enacted long before the existence of limited liability partnerships (LLPs). So there are questions about how to apply the SE tax rules to LLP partners. One Tax Court decision delivers some much-needed clarity, although it does not deliver news that is friendly to law firm partners. According to the Tax Court, the active partners… Read more ›

It’s critical for your organization to keep accurate tax related documents and maintain a good recordkeeping system. This way, you can respond to an IRS audit or prove compliance with various laws should it become necessary. However, you don’t have to retain every paper document or electronic file that crosses your desk. The IRS requires organizations to keep certain essential documents on file. These records back up accounting entries, reported taxable income, expenses and deductions. For example, you must keep… Read more ›

If you run a business and accept payments through third-party networks such as Zelle, Venmo, Square or PayPal, you could be affected by new tax reporting requirements that take effect for 2022. They don’t alter your tax liability, but they could add to your recordkeeping burden, as well as the number of tax-related documents you receive every January in anticipation of tax-filing season. Form 1099-K primer Form 1099-K, “Payment Card and Third-Party Network Transactions,” is an information return that reports… Read more ›

Click here to learn more about our tax, accounting and advisory services for attorneys and law firms. Partners in professional service firms must sometimes pay for certain firm-related business expenses out of their own pockets. For instance, a law firm partner may have to personally absorb the costs of entertaining prospective clients who are not on a designated firm-wide list of potential clients for which the firm will reimburse the costs of wining and dining. Also, a partner may incur personal auto… Read more ›

Are you feeling generous? Qualified charitable contributions can be rewarded with sizeable tax breaks during the second calendar year of the COVID-19 pandemic. Recent legislation includes the following four temporary tax law changes that are designed to help individuals and businesses that donate to charities through the end of 2021. 1. Deductions for Non-Itemizers In the past, you could claim significant itemized deductions on your federal income tax return for contributing money or property (or both) to qualified charitable organizations… Read more ›

Click here to learn more about our tax, accounting and advisory services for attorneys and law firms. Disputes concerning employee versus independent contractor have been going on for years. The last attempt by Congress at a fix was in 1978 (yes, that long ago!), and it only produced some penalty relief. Whether a worker is an employee or independent contractor can depend on IRS pronouncements, case law, etc., but it’s highly dependent on the facts and circumstances, as one U.S…. Read more ›

Negotiations continue in Washington, D.C., over the future of President Biden’s agenda. Tax law changes may be ahead under two proposed laws, the Build Back Better Act (BBBA) and the Bipartisan Infrastructure Bill (BIB), also known as the Infrastructure Investment and Jobs Act. The final provisions remain to be seen, but the BBBA and, to a lesser extent, the BIB, contain a wide range of tax proposals that could affect individuals and businesses. It’s also unclear when the tax changes… Read more ›

The State of Maryland has extended the filing deadline for 2020 income tax returns from pass-through entities until September 15, 2021. The waiver, which goes automatically into effect and requires no action on the part of filers, acknowledges a new complexity introduced to the filing process through passage of recent legislation, SB 496 – Recovery for the Economy, Livelihoods, Industries, Entrepreneurs and Families (RELIEF) Act, and SB787 – Digital Advertising Gross Revenues, Income, Sales and Use, and Tobacco Taxes –… Read more ›

Corporate entities that do business in the Commonwealth of Virginia have likely received a notice about a report they are required to file by July 1, 2021. The report, which should be based on 2019 corporate income tax calculations, intends to identify each business’ required tax payment should they file as part of a unitary combined group. Submitting the report will not result in taxes or fees though a failure to file, a late filing, a material omission or a… Read more ›