Blog posts from: 2022
New clarifications announced for hardship distributions from retirement plans
A retirement plan may, but is not required to, provide for hardship distributions. Many plans that provide for elective deferrals provide for hardship distributions. Thus, 401(k) plans, 403(b) plans, and 457(b) plans may permit hardship distributions. If a 401(k) plan...
Student loan debt forgiveness application is now open
The federal student loan debt forgiveness application is now open and must be completed by eligible borrowers by Dec. 31, 2023 to be considered for the program. The debt relief applies only to student loans obtained before June 30, 2022...
SCAM ALERT: Beware a new IRS-themed phishing scam via text
The Internal Revenue Service is warning taxpayers of a recent increase in IRS-themed texting scams aimed at stealing personal and financial information. So far in 2022, the IRS has identified and reported thousands of fraudulent domains tied to multiple MMS/SMS/text...
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
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
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
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
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...