2021 Will Accelerate Accounting’s Digital Transformation
We can’t put the genie back in the bottle. The words “Digital Transformation” have become something of a buzz phrase since COVID-19 turned our world upside down last March. The fact is that digital transformation was already happening at a steady pace ― COVID-19 merely accelerated this shift. The pandemic introduced a plethora of new…
The Tax Implications of Closing a Schedule C Business
Unfortunately, many businesses have already been forced to close their doors due to the economic fallout from COVID-19, and more will surely follow. Closing a business has important federal income tax implications that owners should understand. Here’s what owners of sole proprietorships and single-member (one-owner) limited liability companies (SMLLCs) need to know. Reporting Gains, Losses…
Appropriations Law Adds Some Business Tax Breaks and Extends Others
President Trump signed the Consolidated Appropriations Act (CAA) into law on December 27, 2020. The legislation adds a few new tax breaks for businesses and extends a bevy of other business breaks that were set to expire at the end of 2020. Note: The tax changes explained in this article are found in sections of…
New Law Includes Favorable Changes for Individuals
The massive COVID-19 relief bill signed by President Trump on December 27, 2020, contains a variety of tax breaks and authorizes direct payments to eligible individuals (see right-hand box). The law is titled the Consolidated Appropriations Act of 2021 (CAA) but two sections of it are called the COVID-Related Tax Relief Act (COVIDTRA) and the…
Manage the Tax Implications of Closing Your Corporation or Pass-Through Entity
Economic fallout from the COVID-19 pandemic has sadly forced some small businesses to permanently close. This situation has important federal tax implications. Here’s what individual taxpayers who are owners of so-called “pass-through” entities and C corporations should know. Pass-Though Entity Issues If you’re closing a business that’s operated as a pass-through entity — including a…
COVID-19-Related Relief Is Signed Into Law
On December 27, President Trump signed the Consolidated Appropriations Act of 2021 (CAA), which provides pandemic relief, as well as other tax and health-related provisions. The CAA contains the COVID-Related Tax Relief Act of 2020 (COVIDTRA), as well as a government funding law. Here are some of the highlights. Direct payments to certain individuals. The…
When Nonprofit Organizations Should Return Donations
A donor makes a cash contribution to a nonprofit community health organization. The donor itemizes income tax deductions and meets the IRS’s substantiation requirements. So he’s entitled to take a deduction for the donation. The nonprofit is happy to accept his gift and uses the money to further its charitable mission. Everyone wins — that…
Estimating Business Interruption Losses
From hurricanes and floods to windstorms and wildfires, 2020 is shaping up to be one of the worst years on record for natural disasters in the United States. Experts estimate businesses, including farms, manufacturers, retailers and construction contractors, will lose billions of dollars from natural disasters this year. Many business owners have business interruption insurance…
NLP Can Help Detect Fraud Evidence in Business Data
Successfully preventing occupational fraud and fending off external threats generally requires businesses to analyze large volumes of data to uncover possible red flags. This already challenging task is made harder by the fact that approximately 80% to 90% of business data is estimated to be “unstructured” — in the form of emails, voicemails and social…
Award Year-End Bonuses the Right Way
This has been a rough year for many businesses in a broad range of industries — perhaps including your company. As the New Year beckons, you might want to reward employees who rose to 2020’s considerable challenges and outperformed. One approach is to reward loyal workers with year-end bonuses. Bonuses remind employees that you value…