Inflation Reduction Act of 2022
President Biden signed the Inflation Reduction Act of 2022 (“IRA”) into law on August 16, 2022. The IRA is a skinny version of the Build Back Better Act, which was passed by the House but failed to pass in the Senate last fall. The 273-page IRA addresses climate, energy, healthcare, taxes, and IRS funding. In this article, we are only covering a few areas that might affect our clients. We are also including a links to several articles that cover additional provisions.
Now’s the Time to Revisit Your Buy-Sell Agreement – Will Your Company’s Buy-Sell Work at Today’s Valuations?
Valuations for most businesses have dramatically increased over the last few years. There is plenty of activity and cash in the M&A market. Industries (like engineering) have become targets for venture capital pushing valuations even higher. Many of the buy-sell agreements were set up when the business started, sometimes decades ago, and are no longer…
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Alabama Amends Alabama Accountability Act – Increased Alabama Income Tax Credit Available
Governor Ivey recently signed Senate Bill 261 into law, which increases the tax credit for contributions made to Scholarship Granting Organizations (“SGO”). Effective in 2022, an Alabama taxpayer may claim up to 100% of the individual’s Alabama tax liability for contributions made to an SGO, not to exceed $100,000 per year. Prior to the 2022 amendment, the credit was limited to 50% of the taxpayer’s Alabama tax liability with a cap of $50,000. For C corporations, the credit was also increased from 50% to 100% of the Corporation’s Alabama tax liability and is not subject to the $100,000 per year cap.
IRS Reminds Employers of Penalty Relief Related to Claims for Employee Retention Credit
A couple of weeks ago we covered the IRS backlog of amended payroll tax returns (941X) for employee retention credits. Now, the Treasury and IRS have responded to requests from taxpayers for relief from penalties with IR-2022-89.
Unclaimed Property – Could some of it be yours?
We run this post periodically and, each time several people report finding funds held by the state. Also, we’re just happy to send something out that has nothing to do with COVID and the pandemic. Each year, unclaimed or abandoned assets are turned over to Alabama Unclaimed Property by financial institutions and businesses that lose…
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Ukraine to Citizens – No Taxes Due on Captured Russian Tanks
Interesting article from CPA Practice Advisor on Ukraine Tax Authority’s position to pass on captured spoils of war. Spoils of War? Ukraine Says No Taxes Due on Captured Russian Tanks Isaac M. O’Bannon – March 3, 2022, CPA Practice Advisor “Have you captured a Russian tank or armored personnel carrier and are worried about how…
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Tips on How to be a Great Individual Tax Client
We’ve just sent out 2021 individual tax organizers. Clients use the organizer in different ways and complete to different degrees –which is fine. Some are meticulously complete while other organizers are return sealed in the mailing envelope untouched by human hands. The most important part of the organizer are the questions on the first few pages….
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New Alabama Legislation to Exempt Federal COVID Benefits from Alabama Income Tax
Yesterday, Alabama House Bill 231 and Alabama Senate Bill 152 were forwarded to Governor Kay Ivey for signature. This legislation, when signed, will effectively exempt from state income taxes certain federal benefits that taxpayers received from the American Rescue Plan Act last year, a coronavirus relief bill passed by Congress. The exemption applies to the…
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Cryptocurrency Reporting
Perhaps it’s just a generational thing, but to be honest I don’t understand cryptocurrencies. I’ve read various articles and can spout off definitions of blockchain, bitcoin and a host of other cool tech-sounding words and phrases. It does make me feel a little better when I read what the IRS has published over the past couple of years on the subject. It appears to me they are trying to catch up as well.
FEMA is Reimbursing Up To $9,000 For Each COVID-19 Related Funeral
Under the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 and the American Rescue Plan Act of 2021, FEMA is providing financial assistance for COVID-19 related funeral costs. The benefit is a maximum of $9,000 per deceased individual or $35,500 per applicant for multiple deaths. As of January 3, 2022, FEMA received 9,077 applications…
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