New City of Birmingham Business Tax and License System – Action Required by September 6th
The City of Birmingham recently announced a software change in the Tax and License Division, requiring users to migrate to a new system. City of Birmingham Press Release Birmingham, AL – As the City of Birmingham continues to strengthen its systems of engagement with local businesses, the Tax and License Division is introducing a new,…
Read More
CrowdStrike – What Happened?
On Monday, CPA Practice Advisor shared a great overview of the CrowdStrike glitch that shutdown airlines and many companies. According to CrowdStrike’s website, it has 29,000 customers around the world, including some of the biggest companies in the US. Microsoft has estimated that the incident, which is being described as one of the worst IT…
Read More
2024 Tax Deduction for Meals and Entertainment
The meals and entertainment deduction has gone through several revisions in recent years. Before 2018, meals and entertainment were eligible for a 50% tax deduction. Beginning with the 2018 tax year, the Tax Cuts and Jobs Act eliminated the deduction for entertainment expenses altogether, while most meals remained 50% deductible. In 2021 and 2022, the Consolidated…
Read More
$1 Billion in Unclaimed Property Held by the Alabama Treasury
We run this post periodically, and each time, several people report finding funds held by the State of Alabama. Each year, unclaimed or abandoned assets are turned over to Alabama Unclaimed Property by financial institutions and businesses that lose contact with the owners. Currently, approximately $1 billion in unclaimed funds is being held by the…
Read More
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…
Read More
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…
Read More
Reducing Alabama Property Taxes on a Second Home
Homestead Exemption In Alabama, a homestead exemption is available for a single-family owner-occupied dwelling and the land thereto not exceeding 160 acres. Only one homestead is granted regardless of how much property is owned within the state. Second Home While a second home cannot qualify for a homestead exemption, there is an opportunity for a…
Read More
Silicon Valley Bank Failure – What’s Next?
Over the last week, many of our clients have called and asked if they should be concerned about banks and deposits. While we don’t offer opinions on the stability or solvency of any particular financial institution, we wanted to provide information about these events and FDIC insurance limits. On March 10, Silicon Valley Bank (“SVB”)…
Read More
Donor Advised Funds – A Simple Way to Gift
A donor-advised fund is a charitable investment account solely for supporting charitable organizations you support. When you contribute appreciated securities or cash to the account, you get an immediate tax deduction. The funds in the account grow tax tax-free. You can recommend grants to any IRS-qualified charity. One of the biggest benefits of using a…
Read More
Misinformation Abounds on IRS Plan to Spend $80 Billion
The Inflation Reduction Act provides nearly $80 billion in IRS funding over the next ten years. The IRS plans to use some of the funds to hire 87,000 employees. Many claim the funds will be used to hire an army of auditors dedicated to auditing taxpayers. Let’s add some perspective to the claims and numbers:…
Read More