Blog posts from: 2022

MICPA Connections: Three Steps for a Successful Firm Integration

Mergers and acquisitions (M&As) have been on a uptick in the accounting industry, but for CPA firm owners across Michigan, the process can succeed or fail based on the acquiring firm’s ability to successfully integrate the new business. Transitioning ownership of a firm is...

Teachers get back-to-school gift from IRS: increased deductions for classroom expenses

  • August 31, 2022
  • ShindelRock

For the first time in 20 years, the Internal Revenue Service is increasing the deduction limit for the amount of money teachers spend on school supplies, the agency has announced.  Teachers will now be able to deduct up to $300...

Ten questions every business owner should ask before hiring a CPA firm

Ten questions every business owner should ask before hiring a new CPA firm: How long has the firm been in business? Demonstrated longevity and stability are important factors to consider. What is the experience of the staff members who will...

Penalty relief coming for taxpayers and businesses

  • August 26, 2022
  • ShindelRock

The IRS has announced broad-based penalty relief for certain 2019 and 2020 returns due to the COVID-19 pandemic. The penalty abatement will be automatic for people and businesses who qualify and if the penalty has already been paid, the taxpayer will...

Freelance (or gig) workers need to keep these tax rules in mind

  • July 25, 2022
  • ShindelRock

The IRS wants freelance or "gig" workers to understand that their work is taxable for payments received in 2022 to totals exceeding $600, regardless of the total number of transactions or whether the work is full-time or part-time. While an employer...

A Kovel agreement can privilege communication from your CPA

Attorney-client privilege is a legal concept that protects confidential communications between attorneys and clients that are made for the purpose of obtaining or giving legal advice. The privilege, which is owned by the client, is intended to encourage full and candid...

Form 706 extension for portability changes from two to five years from date of death

  • July 15, 2022
  • ShindelRock

The IRS has provided a simplified method for certain taxpayers to obtain an extension of time to file a return on or before the fifth anniversary of the decedent's death to make a portability election. For purposes of federal estate...

IRS may legitimately ask for taxpayer ID verification with Letter 5071C

  • July 12, 2022
  • ShindelRock

In 2015, we first reported a new method the IRS was using to verify the identity of taxpayers as part of its effort to combat the growing problem of identity theft.  That technique, a mailed letter known as Letter 5071C,...

Investigatory and acquisition costs when starting or buying a new business may be deductible

Many business owners know their business-related expenses may be deductible, but there are different tax rules for business start-up or acquisition costs.  Investigatory costs, start-up costs, organization costs, capitalized costs and expansion costs are treated by the IRS as follows:...

Standard business mileage rates going up July 1

In recognition of recent gasoline price increases, the IRS will raise the standard mileage rate for business use to 62.5 cents, up 4.5 cents from the previous rate established on January 1, 2022.  The new rate goes into effect on July...