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PLAN NOW TO MAKE TAX-SMART YEAR-END GIFTS TO LOVED ONES

Are you feeling generous at year end? Taxpayers can transfer substantial amounts free of gift taxes to their children or other recipients each year through the proper use of the annual exclusion. The exclusion amount is adjusted for inflation annually, and for 2022, the amount is $16,000. The exclusion covers gifts that an individual makes to […]

INVESTING IN THE FUTURE WITH A 529 EDUCATION PLAN

If you have a child or grandchild who is going to attend college in the future, you have probably heard about qualified tuition programs, also known as 529 plans. These plans, named for the Internal Revenue Code section that provides for them, allow prepayment of higher education costs on a tax-favored basis. There are two […]

HOW EXTERNAL CONFIRMATIONS ARE USED DURING AN AUDIT

Auditors commonly use confirmations to verify such items as cash, accounts receivable, accounts payable, employee benefit plans and pending litigation. Under U.S. Generally Accepted Auditing Standards, an external confirmation is “a direct response to the auditor from a third party either in paper form or by electronic other means, such as through the auditor’s direct […]

IS YOUR INCOME HIGH ENOUGH TO OWE TWO EXTRA TAXES?

High-income taxpayers face two special taxes — a 3.8% net investment income tax (NIIT) and a 0.9% additional Medicare tax on wage and self-employment income. Here is an overview of the taxes and what they may mean for you. 3.8% NIIT This tax applies, in addition to income tax, on your net investment income. The […]

IS IT TIME FOR YOUR BUSINESS TO FULLY DIGITIZE ITS ACCOUNTS RECEIVABLE?

With electronic payments and in-app purchases becoming so much the norm, many midsize to large companies have grown accustomed to software-driven accounts receivable. However, there are some smaller businesses that continue to soldier on with only partially automated payment systems. If your company is still using paper-based processes, and suffering the consequences, it might be […]

CYBER RISKS: A CRITICAL PART OF YOUR AUDITOR’S RISK ASSESSMENT

As businesses and not-for-profit entities increasingly rely on technology, cyber threats are becoming more sophisticated and aggressive. Auditors must factor these threats into their risk assessments. They can also help you draft cybersecurity disclosures and brainstorm ways to mitigate your risk of an attack. Increasing risks How much does a data breach cost? The average […]

THE INFLATION REDUCTION ACT: WHAT IS IN IT FOR YOU?

You may have heard that the Inflation Reduction Act (IRA) was signed into law recently. While experts have varying opinions about whether it will reduce inflation in the near future, it contains, extends and modifies many climate and energy-related tax credits that may be of interest to individuals. Nonbusiness energy property Before the IRA was […]

IRS ANNOUNCES TAX RELIEF FOR VICTIMS OF HURRICANE IAN IN FLORIDA

Victims of Hurricane Ian that began September 23 in Florida now have until February 15, 2023, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today. Following the recent disaster declaration issued by the Federal Emergency Management Agency, individuals and households affected by Hurricane Ian that reside […]

NEW LAW PUTS “BOOK INCOME” IN THE CROSSHAIRS

The financial accounting standards board (FASB) could have congressional lobbyists nipping at its heels over a “book minimum tax” rule in the newly enacted inflation reduction act of 2022 (IRA). This would be the first corporate alternative minimum tax based on financial statement book income since the 1980s. In addition, many in the accounting profession […]

YOUR ESTATE PLAN: DO NOT FORGET ABOUT INCOME TAX PLANNING

As a result of the current estate tax exemption amount ($12.06 million in 2022), many people no longer need to be concerned with federal estate tax. Before 2011, a much smaller amount resulted in estate plans attempting to avoid it. Now, because many estates will not be subject to estate tax, more planning can be […]