2023 Year-End Tax Planning for Businesses U.S. businesses are facing pressure to drive revenue, manage costs and increase shareholder value, all while surrounded by economic and political uncertainties. Disruptions to supply chains brought about by the pandemic have continued into 2023. Inflation and rising interest rates have made the cost of debt, goods and services more expensive and cooled consumer spending. The stock market continues to fluctuate and the prospect of a recession is on the rise. What’s more, the outcomes of the upcoming November U.S. Presidential election will shape future ..read more

 2023 Year-End Tax Planning for Individuals  With rising interest rates, inflation and continuing market volatility, tax planning is as essential as ever for taxpayers looking to manage cash flow while paying the least amount of taxes possible over time. As we approach year end, now is the time for individuals, business owners and family offices to review their 2023 and 2024 tax situations and identify opportunities for reducing, deferring or accelerating their tax obligations.   Individual tax planning highlights Taxpayers should consider whether they can minimize their tax bil ..read more

Significant Changes to Electronic Filing Requirements for 2023 Tax and Information Returns   (Major impact for 1099’s) The Internal Revenue Service issued new regulations significantly expanding mandatory electronic filing of tax and information returns that require almost all returns filed on or after January 1, 2024, to be submitted to the IRS electronically instead of on paper. Under the new rules, filers of 10 or more returns of any type for a calendar year generally will need to file electronically with the IRS. Previously, electronic filing was required if the filing was more t ..read more

Research and Experimental Expenses – Major Changes WHAT BUSINESSES NEED TO KNOW Businesses that invest in research and development should be aware of a major change to the tax treatment of research and experimental (R&E) expenses. The amendment to Internal Revenue Code (IRC) Section 174 made by the 2017 tax reform legislation known as the Tax Cuts and Jobs Act (TCJA) is in effect for tax years beginning in 2022. Section 174 R&E expenditures can no longer be deducted when incurred. Instead, the amounts incurred must be capitalized and amortized over either five years or 15 years, depend ..read more

2022 Year-End Tax Planning for Businesses   U.S. businesses are facing pressure to drive revenue, manage costs and increase shareholder value, all while surrounded by economic and political uncertainties. Disruptions to supply chains brought about by the pandemic have continued into 2022. Inflation and rising interest rates have made the cost of debt, goods and services more expensive and cooled consumer spending. The stock market continues to fluctuate and the prospect of a recession is on the rise. What’s more, the outcomes of the upcoming November U.S. congressional elections will shap ..read more

Individual tax planning highlights Taxpayers should consider whether they can minimize their tax bills by shifting income or deductions between 2021 and 2022. Ideally, income should be received in the year with the lower marginal tax rate, and deductible expenses should be paid in the year with the higher marginal tax rate. If the marginal tax rate is the same in both years, deferring income from 2021 to 2022 will produce a one-year tax deferral and accelerating deductions from 2022 to 2021 will lower the 2021 income tax liability. Actions to consider that may result in a reduction or deferral ..read more

Year-end tax planning for businesses is especially difficult for 2021 because the Build Back Better Act has the potential to impact broad areas of taxation. Congress continues to negotiate a compromise. Unfortunately, it is difficult to know what is likely to emerge as the final version. In addition, although the effective date for most of the provisions in the Build Back Better plan are tied to the enactment date, January 1, 2022, or even later, a few proposals may be retroactive. Based on current law, here are end-of-year tax planning strategies that are available to business owners to reduc ..read more

For tax years beginning on or after January 1, 2021, eligible partnerships and S corporations may annually elect to pay the “pass-through entity tax” (PTET). This is an optional election. The benefit of doing so is that NYS income taxes normally limited to the state and local tax deduction of $10,000 on Schedule A can with this election be deducted in full through a tax deduction reducing ordinary income pass-through to the NYS partners and S corporation shareholders. The election to opt into PTET for the tax years beginning on or after January 1, 2021 must be made through the entity’s NYS Bus ..read more

In recent days the Treasury Department has issued some much-anticipated guidance on certain issues surrounding this potentially valuable credit. Some general highlights: Wages paid to majority owners and their relatives, as defined, are not considered qualified wages for purposes of obtaining the credit. In general, wages paid to unrelated, minority owners, will be eligible for the credit.   Timing of Qualified Wages Deduction Disallowance   The general rule is that an employer’s deduction for qualified wages, including qualified health plan expenses, is reduced by the amount of ..read more

What is an Economic Impact Notice? After a taxpayer has been issued an Economic Impact Payment, the IRS is required to mail an Economic Impact Notice to the recipient at their last known address. This notice provides information about the amount of the Economic Impact Payment, how it was made, and how to report any payment that wasn’t received. If you’ve received some mail recently from the Department of Treasury, it may be an Economic Impact Notice. You may even have received multiple notices. Let’s take a look at the different types of notices you may have received: Notice 1444, Your Econom ..read more