Category: Business Practices

Net Operating Loss (NOL) carry-forward requires careful record-keeping

Taxpayers who claim a net operating loss (NOL) on a tax return must keep careful records to substantiate the claim, including past tax returns that show consistent treatment of NOLs and financial data (or strong corroborating testimony and recreated records), or...

Determining nexus for multi-state income tax filings for businesses

Establishing "nexus" of a corporation's business activity determines the state or foreign country which has jurisdiction to impose an income tax or franchise tax measured by net income.  For businesses generating revenue in multiple states, or doing activities that generate...

Infrastructure Bill ends ERTC for employers early

The recently passed $1.2 trillion Infrastructure Investment and Jobs Act includes key provisions affecting American employers, including an early end to the Employee Retention Tax Credit (ERTC), also referred to as the Employee Retention Credit (ERC).  The ERTC was created in...

IRS advises business owners to follow these steps when closing a business

There are many reasons a business owner may choose to close their doors, and there are many things that must be done to officially "go out of business". Two important steps all business owners must take are fulfilling their federal...

SR Client Question: What happens if a PPP loan is defaulted upon?

A Paycheck Protection Program (PPP) loan default is treated just like any other SBA loan guaranteed by the government to a lender (under the 7A program, the government secures 85% of a loan to the bank; for PPP loans, the...

QuickBooks will no longer sell a Desktop product after December 10

Small business owners who prefer QuickBooks for Desktop to the company's online, cloud-based offering should upgrade to Quickbooks Desktop Pro 2021 before December 10, as QuickBooks will be changing to a subscription model-only with the release of the 2022 version....

State Pass-Through Entity Tax law changes allow owners to mitigate SALT deduction limits

Recently several states have enacted legislation for a pass through entity (PTE) tax, including states with high income tax rates like California and New York. A PTE tax provides for a state income tax deduction for owners at the entity...

PPP loans of $150,000 or less can now be forgiven directly through the SBA

Business owners who received Paycheck Protection Program (PPP) loans of $150,000 or less can now apply for forgiveness directly through the SBA, according to a new SBA announcement. The new streamlined application portal will simplify the forgiveness process for over 6.5...

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...