New IRS FAQs: 2020 Employment Tax Deposits/ Payments Deferral
The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides employers with a deferral mechanism for the employer portion of any Social Security taxes and self-employed individuals with a deferral mechanism for the employer portion of any self-employment taxes... David E. Peritz, CPA
Impact of COVID-19 on Accounting for Income Taxes
The spread of COVID-19 is impacting businesses around the world. As entities consider the effects of COVID-19 on their global operations, careful consideration is needed in understanding the accounting implications of these developments. The many ramifications of the curr... April D. Little, Ciro Buttacavoli, and Adam Lehmann
The Ins and Outs of Day-Care Provider Taxes: Part 1
The Ins and Outs of Part Day-Care Provider Taxes Part 1 By Laura Strombom, EA As the profession adapts to the changes under the Tax Cuts and Jobs Act of 2017, those who prepare primarily basic returns, such as a 1040 with only a Schedule A, may need to add additional areas to their practices. One strategy is to specialize in an area that will continue to demand expert preparation services.... Laura Strombom, EA, MBA, NTPI
The Ins and Outs of Day-Care Provider Taxes: Part 2
IRC Section 162, Trade or Business Expenses Section 162(a) states: In general there shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business... . In a home daycare, many of the expenses have personal and business elements. Te Audit Technique Guide for child-care providers (ATG for CC) states: The examiner needs to evaluate in a fair a... Laura Strombom, EA, MBA, NTPI Fellow®
How Education Can Save You Money on your Income Taxes
Education is perhaps the single best investment that a person can make during his or her life. According to a recent report from the U.S. Bureau of Labor Statistics, bachelor degree holders earn $1 million more over t heir lifetimes t han high school graduates. The Internal Revenue Service allows several tax benefits that help to defray the cost of education. These benefits are not just for the taxpayer, but they are also for the spouse and/o... Anthony Santullo, EA