TAX NEWS & ALERTS

Tax News & Alerts

  • April 15 Deadline Update

    April 15 Deadline Update

    FEDERAL AND OHIO TAX DEADLINES GUIDANCE UPDATES By: Chris Anderson and Paul Valencic FEDERAL UPDATE The IRS recently updated earlier guidance (Federal Income Tax Extension) with respect to the April 15th tax deadline.  Notice 2020-18 supersedes that earlier guidance and is generally more favorable for taxpayers.  Here are the highlights: Any federal income tax payment or federal income tax return ... Read MoreRead More »
  • Adjustments to State Tax Filings

    Adjustments to State Tax Filings

    In the light of the coronavirus (COVID-19) pandemic, states throughout the country are adjusting their filing and payment deadlines in order to offer relief and to accommodate those affected by the virus or a particular state’s mandatory ‘stay order’. Here are several links to helpful informational resources which will address various state positions as a result of the pandemic. We have also highlighted a few states that our clients are commonly doing business in.  Information is being updated on a daily basis, and we will keep you apprised of new information once it becomes available.  We are here, and dedicated, to helping you navigate through these unprecedented times. Read More »
  • FEDERAL INCOME TAX PAYMENT EXTENSION

    FEDERAL INCOME TAX PAYMENT EXTENSION

    EXTENSION HAS BEEN GRANTED FOR FEDERAL INCOME TAX PAYMENTS DUE APRIL 15, 2020. In Notice 2020-17, the IRS provided guidance about the recently announced extension of federal tax payments due April 15, 2020.  The details of the guidance are listed out in this news post.Read More »
  • Child Tax Credit

    Child Tax Credit

    If you’re a parent, or if you’re planning on having children, you know that it’s expensive to pay for their food, clothes, activities and education. Fortunately, there’s a child tax credit available for taxpayers with children under the age of 17, as well as a dependent credit for older children. Changes made by the Tax Cuts and Jobs Act (TCJA) make the child tax credit more valuable and allow more taxpayers to be able to benefit from it. These changes apply through 2025.Read More »
  • 2020 Individual Tax Limits

    2020 Individual Tax Limits

    Answers to your questions about 2020 individual tax limits - Right now, you may be more concerned about your 2019 tax bill than you are about your 2020 tax situation. That’s understandable because your 2019 individual tax return is due to be filed in less than three months. However, it’s a good idea to familiarize yourself with tax-related amounts that may have changed for 2020. For example, the amount of money you can put into a 401(k) plan has increased and you may want to start making contributions as early in the year as possible because retirement plan contributions will lower your taxable income.  Read More »
  • Charitable Gift Deductions

    Charitable Gift Deductions

    Can you deduct charitable gifts on your tax return? Many taxpayers make charitable gifts — because they’re generous and they want to save money on their federal tax bills. But with the tax law changes that went into effect a couple years ago and the many rules that apply to charitable deductions, you may no longer get a tax break for your generosity.  Read More »
  • Further Consolidated Appropriations Act 2020

    Further Consolidated Appropriations Act 2020

    The “Further Consolidated Appropriations Act, 2020” was signed into law on December 20, 2019. It makes many changes to the tax code, including an extension (generally through 2020) of more than 30 provisions that were set to expire or already expired. Two other laws were passed as part of the law (The Taxpayer Certainty and Disaster Tax Relief Act of 2019 and the Setting Every Community Up for Retirement Enhancement Act).  Read More »
  • Not-for-Profit News Flash December 2019

    Not-for-Profit News Flash December 2019

    Although not law yet, Congress has reached a budget bill agreement that includes tax extenders and two important provisions for not-for-profit organizations.  The President is expected to sign the bill. First, the much-maligned provision in the Tax Cuts and Jobs Act of 2017 which forced not-for-profit organizations to recognize taxable revenue for the costs of providing employees with certain transportation benefits including parking has been repealed.  Read More »
  • Not-for-Profit Tax-Exempt Status

    Not-for-Profit Tax-Exempt Status

    One of the worst things that can happen to a not-for-profit organization is to have its tax-exempt status revoked. Among other consequences, the nonprofit may lose credibility with supporters and the public, and donors will no longer be able to make tax-exempt contributions. Although loss of exempt status isn’t common, certain activities can increase your risk significantly.  Read More »
  • Overtime Rules

    Overtime Rules

    The U.S. Department of Labor (DOL) has released the finalized rule on overtime exemptions for white-collar workers under the Fair Labor Standards Act. The rule updates the standard salary levels for the first time since 2004. While it is expected to expand the pool of nonexempt workers by more than 1 million, it’s also more favorable to employers than a rule proposed by the Obama administration in 2016.  Read More »
  • Unemployment Tax Costs

    Unemployment Tax Costs

    As an employer, you must pay federal unemployment tax (FUTA) on amounts up to $7,000 paid to each employee as wages during the calendar year. The rate of tax imposed is 6% but can be reduced by a credit (described below). Most employers end up paying an effective FUTA tax rate of 0.6%. An employer taxed at a 6% rate would pay FUTA tax of $420 for each employee who earned at least $7,000 per year, while an employer taxed at 0.6% pays $42.  Read More »
  • Ohio Tax Update

    Ohio Tax Update

    This is an update to an article posted earlier this summer regarding the signing of Ohio’s state budget bill, which passed on July 18, 2019. Read on to get an overview of the elements which were updated in October 2019.  Read More »
  • Divorce Tax Issues

    Divorce Tax Issues

    In addition to the difficult personal issues that divorce entails, several divorce tax issues need to be addressed to ensure that taxes are kept to a minimum and that important tax-related decisions are properly made. Here are four divorce tax issues to understand if you are in the process of getting a divorce. Here are just some of the divorce tax issues you may have to deal with if you’re getting a divorce. In addition, you must decide how to file your tax return (single, married filing jointly, married filing separately or head of household).Read More »
  • Bonus Depreciation Guidance

    Bonus Depreciation Guidance

    The IRS has released final regulations and another round of proposed regs for the first-year 100% bonus depreciation deduction. The Tax Cuts and Jobs Act (TCJA) expanded the deduction to 100% if the qualified property is placed in service through 2022, with the amount dropping each subsequent year by 20%, until it sunsets in 2027. (The phaseout reductions are delayed a year for certain property with longer production periods.)  Read More »
  • Divorce Decree

    Divorce Decree

    Divorcing or separating taxpayers need to be aware of how the breakup of a marriage may affect their 2019 tax returns. The tax treatment of alimony and separation payments changed for divorce and separation agreements that occurred (or, in some cases, were modified) after 2018.  Read More »
  • Nanny Tax

    Nanny Tax

    You may have heard of the “nanny tax.” But even if you don’t employ a nanny, it may apply to you. Hiring a housekeeper, gardener or other household employee (who isn’t an independent contractor) may make you liable for federal income and other taxes. You may also have state tax obligations.  Read More »
  • Roth IRA Conversion

    Roth IRA Conversion

    Roth IRAs offer significant estate planning and financial benefits. If you have a substantial balance in a traditional IRA and are considering converting it to a Roth IRA, there may be no better time than now. The Tax Cuts and Jobs Act (TCJA) reduced individual income tax rates through 2025. By making the conversion now, the TCJA enhances the benefits of a Roth IRA.  Read More »
  • Mergers and Acquisitions (M&A)

    Mergers and Acquisitions (M&A)

    If you’re considering buying or selling a business — or you’re in the process of a merger or acquisition — it’s important that both parties report the M&A transaction to the IRS in the same way. Otherwise, you may increase your chances of being audited.  Read More »
  • Home Equity Loan Rules

    Home Equity Loan Rules

    Passage of the Tax Cuts and Jobs Act (TCJA) in December 2017 has led to confusion over some of the changes to longstanding deductions, including the deduction for interest on home equity loans. In response, the IRS has issued a statement clarifying that the interest on home equity loans, home equity lines of credit and second mortgages will, in many cases, remain deductible under the TCJA — regardless of how the loan is labeled.  Read More »
  • ACA PCORI Fee Due By July 31, 2019

    ACA PCORI Fee Due By July 31, 2019

    The PCORI (Patient Centered Outcomes Research Institute) Fee filing deadline of July 31, 2019 is fast approaching.  This fee was implemented as part of the Affordable Care Act and applies to an employer’s health plan. The PCORI fee is temporary and only applies for plan years beginning after September 30, 2012 and ending before October 1, 2019.Read More »
  • Tax Payer First Act

    Tax Payer First Act

    The U.S. Senate has passed, and President Trump is expected to sign into law, a broad package of reforms aimed at the IRS. Among other things, the Taxpayer First Act contains several new protections for taxpayers, along with provisions intended to improve the IRS’s customer service.  Read More »
  • Payroll Tax Penalty

    Payroll Tax Penalty

    If federal income tax and employment taxes (including Social Security) are withheld from employees’ paychecks and not handed over to the IRS, a harsh payroll tax penalty can be imposed. To make matters worse, the penalty can be assessed personally against a “responsible individual.”Read More »
  • IRS Audit Statistics

    IRS Audit Statistics

    The IRS just released its audit statistics for the 2018 fiscal year, and fewer taxpayers had their returns examined as compared with prior years. However, even though a small percentage of tax returns are being chosen for audit these days, that will be little consolation if yours is one of them. Latest statistics Overall, just 0.59% of individual tax returns were audited in 2018, as compared with 0.62% in 2017. This was the lowest percentage of audits conducted since 2002.  Read More »
  • Business Tax Implications of Divorce

    Business Tax Implications of Divorce

    If you’re getting a divorce, you know it’s a highly stressful time. But if you’re a business owner, tax issues can complicate matters even more. Your business ownership interest is one of your biggest personal assets and your marital property will include all or part of it.  Read More »
  • Gift Tax Return

    Gift Tax Return

    Did you make large gifts to your children, grandchildren or other heirs last year? If so, it’s important to determine whether you’re required to file a 2018 gift tax return — or whether filing one would be beneficial even if it isn’t required.Read More »
  • Pet Trusts and Your Will 

    Pet Trusts and Your Will 

    An unexpected outcome of the recent death of designer Karl Lagerfeld is that the topic of estate planning for pets has been highlighted. Lagerfeld’s beloved cat, Choupette, played a major role in his brand. The feline was the subject of a coffee table book and has a large Instagram following. Before his death, Lagerfeld publicly expressed his wishes to have his ashes, and those of his cat if she had died before him, to be scattered with those of his mother’s. It’s unknown if Lagerfeld accounted for his beloved Choupette in his estate plan, but one vehicle he could have used to do so is a pet trust.   Read More »
  • D&O Insurance

    D&O Insurance

    Directors and officers (D&O) liability insurance enables board members to make decisions without fear that they’ll be personally responsible for any related litigation costs. Such coverage is common in the business world, but fewer not-for-profits carry it. Nonprofits may assume that their charitable mission and the good intentions of volunteer board members protect them from litigation. These assumptions can be wrong.  Read More »
  • Vehicle Expense Deductions

    Vehicle Expense Deductions

    It’s not just businesses that can deduct vehicle-related expenses. Individuals also can deduct them in certain circumstances. Unfortunately, the Tax Cuts and Jobs Act (TCJA) might reduce your deduction compared to what you claimed on your 2017 return.  For 2017, miles driven for business, moving, medical and charitable purposes were potentially deductible. For 2018 through 2025, business and moving miles are deductible only in much more limited circumstances. TCJA changes could also affect your tax benefit from medical and charitable miles.   Read More »
  • Are Your Employees Ignoring Their 401(k)s?

    Are Your Employees Ignoring Their 401(k)s?

    For many businesses, offering employees a 401(k) plan is no longer an option — it’s a competitive necessity. But employees often grow so accustomed to having a 401(k) that they don’t pay much attention to it. It’s in your best interest as a business owner to buck this trend. Keeping your employees engaged with their 401(k)s will increase the likelihood that they’ll appreciate this benefit and get the most from it. In turn, they’ll value you more as an employer, which can pay dividends in productivity and retention.  Read More »
  • Your Charitable Donations And Tax Deductions

    Your Charitable Donations And Tax Deductions

    There’s Still time to get substantiation for 2018 donations - If you’re like many Americans, letters from your favorite charities have been appearing in your mailbox in recent weeks acknowledging your 2018 year-end donations. But what happens if you haven’t received such a letter — can you still claim an itemized deduction for the gift on your 2018 income tax return? It depends.  Read More »