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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Key Provisions in Secure 2.0
In December 2022, Congress passed a giant omnibus budget bill that included the Setting Every Community Up for Retirement Enhancement 2.0 Act of 2022 (“SECURE 2.0”). Secure 2.0 contains numerous provisions related to individual and employer-sponsored retirement plans. Let’s examine a few of the key provisions. Age Increased for Required Minimum Distributions The age used…
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Employee Retention Credit Refund Update
Our last “Where’s My ERC Refund” update was published almost a year ago in June 2022. Since then, many outstanding ERC refunds have been processed and paid by the IRS with interest, while businesses continue to file additional ERC refund claims. Many of our clients have received a refund for some quarters, but not others,…
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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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