SECURE Act results in tax credit opportunities for employers

With the recent passage of the Setting Every Community Up for Retirement Enhancement (SECURE) Act into law, several tax credits originally set to expire at the end of 2019 have been extended through tax year 2020. Business owners should be aware of these potential tax saving opportunities, as the resulting dollar-for-dollar tax credits can be …

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New VIE guidance impacting private companies

Over the past seven years, the guidance for variable interest entities (VIEs) has evolved due to collaboration between the Financial Accounting Standards Board (FASB) and the Private Company Council (PCC). The list below depicts the evolution through FASB ASU No. 2014-07 and most recently FASB ASU No. 2018-17. Prior to FASB ASU No. 2014-07 Required …

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The strangest taxes in history

Taxes are not everyone’s favorite topic especially if they didn’t benefit from the changes enacted in 2018. However, it can be fun to look back on some of the strangest taxes that have been charged (in history and present-day) to make you realize it could be worse! In history England once implemented a window tax …

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Form 1099-NEC: How Retro!

Here’s a blast from the past for those of us who were creating Forms 1099 in the early 1980’s. Form 1099-NEC is back! This form is not exactly the same as the last one used in 1982; the current form will be a primped up, more informative Form 1099 (read that as more boxes to …

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Work opportunity tax credit updates

Recently, the IRS instructed their auditors to allow employers to take the work opportunity tax credit (WOTC) in the year in which they receive the required certification. As opposed to the year in which the employer paid or incurred certified employee’s qualified wages. The recent IRS decision provides some administrative relief for taxpayers and tax …

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Final “Clawback” regulations issued by the Treasury

The Tax Cuts and Jobs Act doubled the estate and gift tax exemption amount to $10 million* per person. This means that in 2019 a total of $11.4 million and in 2020 $11,580,000 can be transferred on death or by gift, free of federal estate and gift tax. For a married couple, the total amount …

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Tips for holiday gift card shopping

It’s that time of year! Lots of shopping and when no great gift comes to mind, you may, like me, default to gifting a gift card to that favorite person. The Federal Trade Commission (FTC) offers great tips on making your gift card giving more joyous! Inspect gift cards before you buy. All the protective …

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New contribution limit and phase-out ranges for 401(k) plans

For 2020, the 401(k)-contribution limit is being increased to $19,500 from $19,000 and the catch-up limit is being increased to $6,500 from $6,000. In addition, the limitation regarding SIMPLE retirement accounts is increasing to $13,500 for 2020. In order to determine eligibility to made deductible contributions to traditional IRAs or to contribute to Roth IRAs …

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