Accounting

Accounting

By Greg Dowell 13 Nov, 2023
Catching many businesses by surprise, this Act kicks in with filing requirements as early as January 1, 2024.
By Greg Dowell 05 Sep, 2023
Having a business fail for lack of employees was unheard of 10 years ago. The problem existed for many businesses long before the pandemic, but it certainly went to a whole new level from 2020 to the present.
By Greg Dowell 24 Aug, 2023
Improve profitability, reduce the opportunity for fraud, focus on your core business, eliminate excuses for tardy financial data - what's not to love about outsourcing your accounting?
By Greg Dowell 16 Aug, 2023
ESOPs have been around for years; they could be a solution for ownership transition.
By Greg Dowell 11 Mar, 2023
Don't forget a birthday, anniversary, or any of these tax filing dates . . .
By Greg Dowell 19 Feb, 2022
The trend of too few employees persists.
By Greg Dowell 20 Dec, 2021
The IRS recently released Notice 2022-03, which provides the optional 2022 standard mileage rates for taxpayers. These rates are used to compute the deductible costs of operating an automobile for business, charitable, medical or moving expense purposes. In addition, the notice also provides the amount taxpayers must use to calculate reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that may be sued in computing the allowance under a fixed and variable rate plan (FAVR). The standard mileage rate for 2022 is $.585 per mile for business use. The standard mileage rate is $.14 per mile for charitable purposes (unchanged from 2021), when rendering services to a charitable organization. For medical purposes, the standard mileage rate is $.18 per mile (an increase of $.02 from 2021). Note that this same $.18 rate is used for moving expenses, but the moving expense deduction is suspended by TCJA for tax years before January 1, 2026, except for members of the Armed Forces. Taxpayers may choose to calculate the actual costs of using their vehicle rather than using the standard mileage rates. If a standard mileage rate is initially used for business purposes, a taxpayer can choose either the standard mileage rate or actual expenses in later years. In the case of a leased vehicle, if the standard mileage is used in the initial year, it must be used for the entire lease period. For autos used for business, the part of the business standard mileage rate treated as depreciation is $.26 per mile for 2022 (it was also $.26 per mile for 2021). For purposes of computing the allowance under a FAVR plan in 2022, the standard auto cost may not exceed $56,100 (includes autos, trucks, and vans). For purposes of the fleet-average valuation rule and the vehicle cents per mile valuation rule, the maximum FMV of autos (including trucks and vans) first made available to employees in calendar year 2022 is $56,100.
By Greg Dowell 19 Jan, 2021
More help is on the way for small businesses.
By Greg Dowell 23 Dec, 2020
Bill on President's Desk for Signature
By Gregory S. Dowell 29 Oct, 2020
October 8, 2020 by Gregory S. Dowell The SBA and the US Treasury announced today that they were releasing a simplified loan forgiveness application for the Paycheck Protection Program Loans of $50,000 or less. The intent is to minimize the burden on small businesses that the Program puts on the smallest of businesses. From the Secretary of the US Treasury, Steven T. Mnuchin: “The PPP has provided 5.2 million loans worth $525 billion to American small businesses, providing critical economic relief and supporting more than 51 million jobs. Today’s action streamlines the forgiveness process for PPP borrowers with loans of $50,000 or less and thousands of PPP lenders who worked around the clock to process loans quickly, We are committed to making the PPP forgiveness process as simple as possible while also protecting against fraud and misuse of funds. We continue to favor additional legislation to further simplify the forgiveness process." The forgiveness application for loans of $50,000 or less is made on form 3508S. The form is one page and requires a small amount of data, with an additional optional page that transmits demographic information. Three pages of instructions are provided separately. While there is a small amount of data to input and no documentation to attach and submit, the SBA also states that they reserve the right to inspect documentation, if necessary. This effort by the SBA and Treasury follows months of complaints and concerns that the SBA/Treasury was not doing enough to alleviate the burdens of the smallest of businesses that benefited from the PPPL. Many tax professionals continue to anticipate that this is not the last word on the matter, and that the forgiveness process may be further simplified in the weeks ahead. Given that possibility, it may be worthwhile to hold off on making any such application for the immediate few weeks.
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