On March 20, 2025, the IRS issued new FAQ’s as guidance to businesses understand how to properly report Employee Retention Credit (ERC) refunds on their income tax returns. This is especially important for companies that received ERC refunds but never amended their earlier tax returns, or for those whose claims were later denied. Background on…
Read More

Under current Alabama law, overtime compensation paid to nonexempt employees in accordance with the Fair Labor Standards Act (FLSA) is exempt from state income tax. This exemption is scheduled to expire on June 30, 2025. Next Steps Effective July 1, 2025, employers will be required to resume withholding Alabama state income tax on overtime wages…
Read More

On May 22, the House Republicans passed the One Big Beautiful Bill Act (H.R. 1, also known as the “Bill”). While the Senate committees give their input and changes, time allows us to analyze which expiring Tax Cuts and Jobs Act (TCJA) provisions are extended in the House’s bill and which elements from President Trump’s…
Read More

A C corporation is a legal structure for a business that is taxed separately from its owners. This structure offers significant legal protections and is favored by companies planning to reinvest profits or eventually go public. Unlike S corporations or LLCs, a C corp pays corporate income tax on its profits. If dividends are paid,…
Read More

Choosing Between Standard Mileage and Actual Cost Methods When deducting vehicle expenses for business use, taxpayers have two primary options: Standard mileage rate (cents-per-mile method) or the actual expense method. Under the cents-per-mile method, businesses multiply the IRS standard rate—70 cents per mile for 2025—by the number of business miles driven. This method is simpler…
Read More

A multi-member LLC (Limited Liability Company) is a popular legal business structure that’s formed by two or more owners, known as members. It combines the limited liability protection of a corporation with the pass-through taxation of a partnership, making it an attractive choice for small businesses, startups, and investment groups. It’s the preferred entity for…
Read More

Advantages of an S Corporation An S corporation offers several key advantages for small and closely held businesses. One of the most notable is pass-through taxation, which allows income, deductions, and credits to flow through to the shareholders’ personal tax returns, avoiding the double taxation faced by traditional C corporations. Other key benefits include: –…
Read More