Avalara, Inc., a leading provider of cloud-based tax compliance automation for businesses of all sizes, has announced its Avalara AvaTax, Avalara Managed Returns, Avalara Returns for Accountants, Avalara Managed Returns for Accountants, and Avalara Exemption Certificate Management solutions have successfully completed the Service Organization Control (SOC) 2 Type 2 examination. The audit process affirms Avalara’s information security practices, policies, procedures, and operations meet the standards set by the American Institute of Certified Public Accountants (AICPA). The report validates th ..read more

The Internal Revenue Service is reminding employers of the January deadline to file Forms W-2 and other wage statements. Filing these documents timely prevents late-filing penalties for employers, helps employees file their income tax returns and prevents tax fraud. Employers must file copies of their 2022 Form W-2, Wage and Tax Statements, and Form W-3, Transmittal of Wage and Tax Statements, with the Social Security Administration by January 31, 2023. This deadline applies for all Forms W-2 and W-3, whether filing by paper forms or electronically. Employers must also provide copies B, C and ..read more

Being an accountant means that work often comes in ebbs and flows. The tide moves in every quarter, and there is always tax season. It’s stressful; that’s just part of the business, right? Maybe. Yes, stress is expected, but burnout is entirely different. [From the Thomson Reuters blog. Republished with permission.] What is burnout? The fight against burnout starts with managing stress. Sure, stress can be beneficial — your ancestors were certainly grateful for that “fight or flight” response — but burnout is not. It leaves you feeling emotionally and physically spent, even on days that ..read more

A large number of unprofitable startups are going to have a surprise tax bill on April 18. A little discussed provision in the Tax Cuts and Jobs Act (TCJA) changes how tax law treats research and development expenses, dramatically reducing how cash expenses are accounted for – pushing many money losing startups into owing taxes. Ernst and Young estimates that this will reduce U.S.-based spending on R&D by $4.1 billion in the first few years. Many VC backed startups will owe taxes – even though they are losing money My firm works with 750+ venture funded startups and our data suggests that ..read more

Think fast, act faster: The 100% bonus depreciation tax advantage for purchasing aircraft is almost at an end. For the last five years, businesses have been able to use bonus depreciation to expense 100 percent of qualified property, including big-ticket purchases like business aircraft. At the start of the new year, bonus depreciation will begin to phase out, going from 100 percent to 80 percent and dropping by 20 percent every year after until it reaches zero. Since the Pandemic started, many business owners have purchased private business aircraft to supplement their business travel needs ..read more

Can You Deduct Nursing Care Expenses? It’s difficult, but not impossible, to qualify for a medical expense deduction on your personal tax return. Some often-overlooked expenses, like amounts paid for nursing care, can make a big difference. Background: Currently, you can deduct unreimbursed medical expenses in excess of 7.5% of your adjusted gross income (AGI), down from 10% of AGI, if you itemize deductions. The medical expense deduction threshold had see-sawed back and forth for several years between 10% and 7.5% of AGI, but recent legislation made the lower threshold a permanent part of th ..read more

If you have children in college, we don’t have to tell you that it usually costs a pretty penny to attend school these days. At least, you may be able to claim one of two higher education credits for qualified expenses, although these tax benefits are phased out for upper-income taxpayers. Tax consolation: Part of the tuition payment you make for a child may be deductible as a medical expense if you itemize deductions on your personal tax return. This might put you over the top of the threshold for a deduction or increase an existing write-off. First, let’s start with some background informat ..read more

By James Royal, Bankrate.com (TNS) The IRS has some good news for workers who use traditional or Roth IRAs to save for retirement. In 2023, you’ll be able to contribute an additional $500 to either account. It’s the first increase since 2019, bringing the total annual contribution limit to $6,500. Those age 50 and older can contribute an additional $1,000. The IRS also increased the income ranges on IRAs, allowing you to earn more money and still take advantage of the tax-free Roth account or the tax-deferred traditional IRA. You will also be able to save more through workplace retirement p ..read more

Normally, you won’t derive any tax benefits for the cost of major renovations or additions to your home, such as replacing your roof or installing a deck. These home improvements typically increase the value of your home, but they are purely personal expenses. Unless… In certain limited situations, you may realize a tax break for a home improvement that is deemed to be medically necessary. If you qualify, a portion of the expense is deductible as a medical expense as long as you itemize deductions. But there is a major obstacle to overcome. Background: Currently, you can deduct unreimbursed m ..read more

Updated: December 23, 2022: 8:51 am ET. It’s still a bit too early to think about it, but in case you are wondering, here’s our annual chart for the #1 question we get every year: “When will I get my tax refund?” The answer is never exact, but we are able to make some educated guesses based on a few factors. Now is also a good time to take advantage of year-end strategies that can lower your tax bill, or increase your refund. If you’ve had major income changes this year, had a child, got married or divorced, retired, bought a house, or changed investments, or made any other really significa ..read more