Category: Business Practices

IRS offers ways to determine Reasonable Compensation in Not-for-Profit and For-Profit entities

The IRS, as part of their audit programs, regularly encounters contentious issues in a tax audit of a business.  One of theses is determining the appropriateness of an amount of compensation paid to owner/employees. For instance: Businesses that pay compensation...

HHS issued revised reporting requirements for recipients of Provider Relief Fund (PRF) payments (effective June 11, 2021)

HHS recently revised the Post-Payment Notice of Reporting Requirements, which increases the amount of time to report and extends the deadline for spending for recipients of Provider Relief Fund (PRF) payments.  This includes increasing the amount of time providers will have to report...

$2 million in COVID-19 workplace safety grants now available from the State of Michigan

The State of Michigan has launched another round of funding for the Michigan COVID-19 Safety Grant Program. These grants will provide small businesses with fewer than 250 employees, including licensed non in-home childcare centers, matching funds of up to $10,000 to...

IRS clarifies changes to the rules regarding dependent care programs

Recent updates to IRS guidance has clarified taxability questions surrounding dependent care assistance programs for 2021 and 2022. Two new federal laws—the Consolidated Appropriations Act (CAA) and the American Rescue Plan Act (ARPA)—have created new opportunities for participants in flexible spending...

The difference between a compilation, a review, and an audit

In the past, we've detailed the many benefits to a financial statement audit and why a business might have an audit conducted.  For times when a formal audit is not required, a compilation or review may satisfy the business owner's needs....

IRS clarifies which meals qualify for 100% deduction for 2021 and 2022

Under IRS Sec. 274(n)(1), any business expense of food or beverages is generally limited to 50% of the amount that would otherwise be deductible. However, a recently-enacted temporary exception allows 100% deduction of restaurant food and beverage expenses incurred after Dec....

Employer-offered Simplified Employee Pension (SEP) Plans: How to stay in compliance

Many small business owners establish a Simplified Employee Pension (SEP) plan as a retirement savings vehicle for themselves and, if qualified, their employees. We often think of these plans to be simple to implement and adhere to regulatory standards, because...

SR Client Question: Do I owe Michigan sales tax when I buy a vehicle from a business I own?

The transfer of vehicles from a business entity to the owner of the business is addressed in Revenue Administrative Bulletin 1991-1 and makes, in most instances, the transfer or "sale" of a vehicle from a business to its owner exempt from owing State...

PPP loan program extended two months for small businesses

President Joe Biden is expected to sign into law an extension to the Small Business Administration’s Paycheck Protection Program (PPP) approved by Congress just a week before it was slated to expire.  The new deadline for applications to be submitted...

Shuttered Venue Operators Grant program to open April 8

The U.S. Small Business Administration (SBA) has set April 8 as the date it will begin accepting applications for the Shuttered Venue Operators Grant (SVOG) program. In a news release, the SBA said it has launched a splash page for...