Stepped Up Basis – What is it and Why it’s Important
The stepped-up basis applies to assets inherited at someone’s death. The IRS resets the asset’s original cost basis to its value at the decedent’s date of death. If the asset is later sold, the heir pays capital gains on the gain (if any) on the sale proceeds less the stepped-up basis. So, if sold immediately…
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Employee Fraud, Internal Control and Segregation of Duties
Employee Fraud, Internal Control and Segregation of Duties Unfortunately, employee theft is rising at the rate of 15% annually. The US Department of Commerce reports that $50 billion annually is lost to employee theft. While the average theft is small and relatively short-lived, it isn’t uncommon for theft to last multiple years and cost millions…
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Beneficial Ownership Reporting in 2024
The Corporate Transparency Act (“CTA”) was a significant piece of U.S. legislation signed into law in January 2021. The CTA was created to address issues related to money laundering, fraud, and other financial crimes, including those committed by anonymous shell companies. Shell companies are set up without revealing their true owners and can be exploited…
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IRS Increases Enforcement on Aggressive Employee Retention Credit Claims
The IRS announced enforcement action against dubious Employee Retention Credit (ERC) claims by sending over 20,000 letters to taxpayers notifying the recipients of disallowed ERC claims. This compliance effort results from a review revealing many taxpayers didn’t meet the ERC criteria. Recipients not eligible for the credit will receive Letter 105 C, “Claim Disallowed.” The…
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IRS Dramatically Expands Electronic Filing Mandate in 2024
The Internal Revenue Service (IRS) released final regulations on February 21, 2023, requiring organizations to electronically file specified returns and other documents. TD 9972 affects virtually all organizations that are required to file returns to the IRS, including filers of employment tax returns and information returns, such as Forms 1099-series, Forms W-2, and Affordable Care Act Forms…
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New Options for Leftover 529 Plan Funds – Convert to Roth IRA
The SECURE 2.0 Act of 2022 introduces a noteworthy change: a special rule allowing transfers from 529 plans to Roth IRAs. Effective in 2024, this rule enables unused college savings to shift to tax and penalty-free retirement accounts. Why This Matters Before this change, if a 529 plan wasn’t fully used for education, options were…
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IRS Scams – What to Know
As we move into the holiday season, it is crucial to continue to be vigilant. Unfortunately, taxpayers are a prime target of con artists claiming to be the IRS to try and solicit sensitive information. There are some essential things to know to stay safe from scams. The IRS does not contact taxpayers via phone,…
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Federal Tax Credits Available for Energy-Efficient Improvements
You may be able to benefit from enhanced residential energy credits as a result The Inflation Reduction Act of 2022. Energy Efficient Home Improvement Credits Building envelope components and energy property qualify: Exterior doors (30% of costs up to $250 per door) Exterior windows or skylights (30% of costs up to $600) Insulation materials (30%…
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Kiddie Tax: When Does it Apply?
Special tax law provisions apply to certain children with unearned income. Generally, unearned is interest, dividends, capital gains, custodial account income and taxable income produced by scholarships. These provisions do not apply to earned income – like W-2 income from a summer job though they may require a return filing. Who Qualifies as a…
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Effective Meetings: Maximize Productivity and Engagement
Meetings are on the rise and essential to our modern work culture. However, poorly managed meetings often lead to wasted time and frustration. When considering scheduling a meeting, first ask yourself if a meeting is necessary. If yes, try to limit the number of attendees and make it as efficient as possible. Tips for more…
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