News

Alabama Business Privilege Tax Changes for 2024 

Alabama House Bill 391 reduced the minimum state business privilege tax in 2023 from $100 to $50.   Beginning in 2024, businesses that are subject to the minimum tax ($100 or less) are completely exempt from paying the tax and filing a Business Privilege Tax Return (BPTIN/CPT/PPT). This means many single-member entities will no longer be…
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Interpreting Financial Statements: The Story Behind the Numbers

Financial statements serve as a window into the health and performance of a business, offering valuable insights for investors, analysts, and stakeholders. The statements, including the income statement, balance sheet, and cash flow statement, provide a comprehensive view of a company’s financial position (and health). Let’s dive into what these statements can reveal: Income Statement:…
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Update on the CPA Profession

When talking with clients, I always like to know how their business is going. I love to hear about everything: their team, sales, challenges, etc. When asked the same question, I usually respond, “Business is great, and we’re looking for more.” However, one of the accounting profession’s biggest challenges is the need for more people…
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Beneficial Ownership Reporting in 2024

The Corporate Transparency Act (“CTA”) was a significant piece of U.S. legislation signed into law in January 2021. The CTA was created to address issues related to money laundering, fraud, and other financial crimes, including those committed by anonymous shell companies. Shell companies are set up without revealing their true owners and can be exploited…
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IRS Increases Enforcement on Aggressive Employee Retention Credit Claims

The IRS announced enforcement action against dubious Employee Retention Credit (ERC) claims by sending over 20,000 letters to taxpayers notifying the recipients of disallowed ERC claims. This compliance effort results from a review revealing many taxpayers didn’t meet the ERC criteria. Recipients not eligible for the credit will receive Letter 105 C, “Claim Disallowed.” The…
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IRS Dramatically Expands Electronic Filing Mandate in 2024

The Internal Revenue Service (IRS) released final regulations on February 21, 2023, requiring organizations to electronically file specified returns and other documents. TD 9972 affects virtually all organizations that are required to file returns to the IRS, including filers of employment tax returns and information returns, such as Forms 1099-series, Forms W-2, and Affordable Care Act Forms…
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New Options for Leftover 529 Plan Funds – Convert to Roth IRA

The SECURE 2.0 Act of 2022 introduces a noteworthy change: a special rule allowing transfers from 529 plans to Roth IRAs. Effective in 2024, this rule enables unused college savings to shift to tax and penalty-free retirement accounts. Why This Matters Before this change, if a 529 plan wasn’t fully used for education, options were…
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A Refresher on IRS Repair Regulations: Capitalize or Expense?

In 2013, the IRS issued final regulations (“Repair Regs”) establishing a framework for distinguishing between deductible repairs and capital improvements. It is important to carefully consider each expenditure in light of the Repair Regs to determine whether each expenditure should be: Expensed immediately. Capitalized and depreciated using accelerated depreciation methods. Capitalized and depreciated over a…
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Alabama Sales Tax Reform for Small Businesses

Beginning October 1st, businesses with an average monthly sales tax liability of less than $20,000 will no longer be required to pay estimated sales tax to the state. The Alabama Department of Revenue will send a letter to those impacted. Click here to see the Alabama Department of Revenue Notice: ADOR sales tax change 10.01.23…
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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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