For many families, their ownership stake in a privately held business represents the most valuable asset in their estate. Valuing this ownership interest for estate planning or transfer tax purposes can be complex, requiring careful consideration of numerous factors. Any valuation report, whether prepared for estate tax filing or gift purposes, is subject to IRS scrutiny and must meet the stringent criteria of a “qualified appraisal.”     Furthermore, thorough consideration must be given to the factors outlined in the Treasury Regulations and Revenue Ruling 59-60. The accou ..read more

IRS continues to apply more scrutiny on high-income taxpayers and announced the beginning of audits focused on the personal use of business aircraft.  The IRS announced in February of 2024 that is launching a targeted enforcement initiative focusing on business deductions claimed for private jet usage by high-net-worth individuals and large corporations. With the additional audit funding provided by the Inflation Reduction Act of 2022, the tax agency is preparing to conduct ‘dozens of audits’ to ensure strict adherence to the rules governing the allocation of private aircraft expenses bet ..read more

According to a recent Fox 7 Austin News report, millions of business owners nationwide may be eligible to receive a portion of a $5.54 billion class-action settlement against Visa and Mastercard. The settlement stems from allegations that the credit card giants had inflated merchant fees charged to businesses for accepting customer payments. While Visa and Mastercard have denied any wrongdoing, stating their business practices are legal, the settlement covers the period from January 1, 2004, through January 25, 2019. In recent years, business owners have faced rising costs, including the credi ..read more

Running out of cash is a stressful worry for every startup or small business owner. Few situations are more daunting than sitting down to process payroll only to realize that you need more money on hand than you anticipated. While cash flow crises can strike in any economic climate, the risk is heightened during times of uncertainty when your income may fluctuate more than expected. In the current environment, it’s crucial to understand your current cash position and its likely trajectory clearly. To take control of your cash flow, you need two key elements: accurate financial statements and t ..read more

The U.S. Department of Labor (DOL) took a significant step in clarifying the classification of workers as employees or independent contractors with the publication of its Final Rule on Employee or Independent Contractor Classification in the Federal Register on January 10, 2024. This rule aims to provide employers with guidance on determining worker classification under the Fair Labor Standards Act (FLSA).    This ruling could be far-reaching, potentially reclassifying millions of gig workers, janitors, home-care workers, construction workers, and truckers as employees rather than in ..read more

As a startup emerges from its earliest stages, achieving key revenue milestones and tracking critical metrics become paramount for driving growth. While initially focused on building a minimum viable product and assembling a founding team, startups must quickly shift attention to generating sales.    If you are fundraising for your startup, investors will want to see certain milestones such as proving your concept’s demand, creating a Minimum Viable Product (MVP), and gaining early users. Generate revenue to show your business model works and expand your team with skilled members. Se ..read more

As the 2024 tax-filing season begins, the Internal Revenue Service is warning about improper use of tax-advantaged health spending accounts. The agency aims to prevent taxpayers from being misled into thinking general wellness expenses qualify as eligible medical costs. In a recent press release, the IRS clarified that personal health and wellness purchases—such as weight loss programs, nutritional supplements, gym memberships, and similar expenses focused solely on general fitness—do not meet the requirements to be claimed through pre-tax health accounts.    IRS Cautions Agains ..read more

Optimizing Social Security claiming would be straightforward if most couples had similar work histories and comparable earnings. Picking the ideal filing age would just involve assessing two roughly equal retirement benefits. However, in reality equal careers are uncommon among spouses. Frequently one partner ends up earning significantly more over their working life than the other. Or a spouse may spend critical years away from the workforce focused on caregiving responsibilities for children or other family members rather than career progression. These income and work history mismatches intr ..read more

The federal Secure Act 2.0 law now allows up to $35,000 from 529 college savings accounts to be rolled over into a Roth IRA retirement account under certain conditions. Recently, the NY Times reported that this change provides more flexibility for 529 account beneficiaries who do not need the funds for educational expenses. Previously, 529 accounts could only be used for tuition, housing, food, and textbooks without incurring taxes or penalties. Now, suppose there is excess money in a beneficiary’s 529. In that case, it can be withdrawn and put into a tax-advantaged Roth IRA account earmarked ..read more

According to reporting from CBS News and Fortune Mag, the IRS said it is poised to collect hundreds of billions of dollars of additional tax revenue by going after overdue and unpaid taxes, far beyond what was previously anticipated, thanks to funding from the Inflation Reduction Act (IRA).  The IRS is positioned to collect up to $561 billion more in overdue taxes from 2024-2034 than previously expected, per new Treasury Department and IRS analysis. This windfall stems from increased IRS enforcement capabilities funded by the Inflation Reduction Act, passed in August 2022. The Congression ..read more