IRS Stops Processing Employee Retention Claims
On September 14th, IRS Commissioner Danny Werfel announced an immediate halt to processing ERC claims, citing concerns over improper/fraudulent claims. To date, the IRS has processed 3.6 million claims. In the last 90 days, 600,000 claims have been received – 15% of total claims submitted. The fear is many of the newly submitted claims do…
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2023 Changes for First Year Expensing of Business Property
As we get closer to year-end, it’s a good idea to consider first-year expensing for eligible property and equipment already purchased and any anticipated purchases before year-end. In 2023, there are two options for businesses to take accelerated first-year depreciation deductions: (1) Section 179 and (2) bonus depreciation. Section 179 Deduction IRC Section 179 allows…
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Jefferson County & Alabama Property Tax Overview
Valuation Process Jefferson County recently sent out valuation notices for properties with an increase in value or change in boundary. The county utilizes a mass appraisal process set forth by the Alabama Department of Revenue. When a sale within a neighborhood indicates an increase or decrease, valuations are adjusted. If you received a notice and…
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Guidance Provided for Overtime Pay Exempt from Alabama Income Tax
In June, we reported that the Alabama Legislature passed HB217, which eliminates the 5% withholding tax on overtime from January 2024 through June 2025. Employers are subject to reporting for 2023, 2024 and 2025. Now, the Alabama Department of Revenue has published reporting guidance and FAQs. Historical 2023 overtime data must be submitted by January…
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IRS Offers Relief on IRA Withdrawals
The SECURE Act of 2019 required non-spouse beneficiaries who inherited an IRA after December 31, 2019, to withdraw all the funds within ten years of the original owner’s death. The ACT also increased the RMD age from 70 ½ to 72. Next, the SECURE 2.0 Act increased the RMD age to 73 beginning in 2023….
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Alabama Department of Revenue Letters Misreporting Nonpayment by Taxpayers
Following this most recent 2022 filing season, many taxpayers in Alabama have reported receiving letters regarding nonpayment. This situation has caused concern among taxpayers and highlighted the need for effective communication and guidance. Nonpayment Letters Nonpayment letters have been particularly prevalent in the case of fiduciary returns, specifically Trust Returns (Form 41). Although the reasons…
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Governor Ivy Signs Bill to Exempt Overtime Pay from 5% State Income Tax
The Alabama Legislature recently passed HB217 which was signed into law by Governor Ivy. The bill eliminates the 5% tax on overtime pay for a fixed period of time. Lawmakers believe the bill helps hourly workers and also employers by enticing employees to work overtime. Key Provisions: The bill exempts Alabama state tax withholding on…
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Accounting – A Necessary Evil?
Our firm works with hundreds of businesses of all shapes and sizes. Though there are many different business structures and industries, there are many commonalities. Our business clients are usually focused on sales, cash flow, and growth. Accounting needs are often considered a necessary evil rather than a priority. Oftentimes, one of the owners or…
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IRS Issues Warning on Aggressive Employee Retention Credit Claims
On March 20th, the IRS issued a warning to promoters and businesses making aggressive claims for employee retention credits (“ERC”). These aggressive ERC refund claims have been added to the 2023 Dirty Dozen list of tax scams. The following excerpts were included in the IRS news release: “Blatant attempts by promoters to con ineligible people…
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Does Your Business Have the Proper Business Licenses?
State of Alabama A business license is required for basically everyone engaged in business within the state. The state and county licenses are issued by the county Probate Judge or License Commissioner in the county where the business is located. The county then remits a portion of the license fees to the state. The Alabama…
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