Accounting Tips for Construction

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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A Personal Experience with Identity Theft

Two weeks ago, someone gained access to our joint bank account through my wife’s login. We still don’t know and understand how. My wife uses an iPad a never uses public WIFI. Somehow the perpetrator was able to log in and change the password, email address and phone number. No notification was sent to the…
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Tips for Improving Cybersecurity

Unfortunately, we live with the constant threat of cyber breaches and stolen data. Individuals are at risk for the loss of personal data & financial loss. If you’re a business owner, there is a real risk of someone gaining access to your network through an employee’s careless click. Ransomware is a real threat, with an…
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Supply Chain Risks Likely to Continue

S&P Global recently released a report titled “Look Forward: A World in Disruption.” The report details all the risks to the global economy and supply chain. The world is in more debt than ever before with the total estimated at $300 trillion or $37,500 for every person in the world compared to GDP per person…
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What Triggers an IRS Letter or Audit?

IRS audit rates remain historically low. According to the 2022 General Accounting Office, .25% of all individual returns were audited in 2019 versus .90% in 2020. Letters for matching errors or return discrepancies are much more common. So how does the IRS check returns and decide who gets a letter or audit? IRS Matching Program…
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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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My 2022 Tax Return Has Been Filed, What Can I Toss?

How Long Does the IRS Have to Assess Additional Tax? In most cases, the IRS can audit, propose adjustments, and assess additional tax up to 3 years after the later of (a) the date a return was filed, or (b) the original due date. For example, assume your 2022 individual tax return was filed on…
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