Category: Tax
Employer-provided tuition assistance programs must meet requirements
An employer-provider educational assistance program is a separate written plan that provides educational assistance only to employees*. For Employers: The program qualifies only if all of the following tests are met: The program doesn't favor highly-compensated employees**. To determine whether...
Tax consequences of compensation clawbacks for issuers and executives
Corporate executives with lucrative contracts can be subject to "clawbacks", or reclaiming of already-paid compensation, for violating company policy, agreement, or law. This can raise questions about the tax implications for both the company who issued the clawback and the executive...
New IRS proposal could affect timing of inherited IRA distributions
If you've inherited an IRA in 2020 or later, take note: the wait-until-the-tenth-year approach to distributing the account might no longer work. Most have interpreted the IRS' regulation of the 2019 SECURE Act to mean that an IRA inherited in...
SR Client Question: Is a salary advance taxable?
Some employers offer employees the option of requesting a salary advance ahead of the standard payment date; for instance, the paycheck would be issued on the first of the month, as opposed to the standard payday of the 15th of...
Employee Retention Tax Credits still available for some businesses
Your business may be eligible for an employee retention tax credit, though the program expired in September. There’s still time to file a claim for up to $28,000 per employee, even if you received a PPP loan. Certain startups and...
Some IRS notices may be temporarily suspended, agency advises
While the Internal Revenue Service works through a return and correspondence backlog, the agency has notified taxpayers it will not send certain letters and notices, including the mailing of automated collection notices normally issued when a taxpayer owes additional tax,...
“Staked” cryptocurrency value may no longer be taxed as income
A recent settlement offered to taxpayers who filed a suit against the IRS may indicate a change in how staked cryptocurrencies are taxed. Previously, staking income was thought of, and treated similar to, interest income. Many crypto exchanges were handling it...
SR Client Question: Do I issue a Form 1099 to a law firm collecting fees for my medical practice?
When a medical practice or other business engages, on a contingent basis, a law firm or other third party to collect outstanding fees or invoices on its behalf, there are two different tax code sections that are relevant. Assuming that...
SR Client Question: Are disability benefits paid out under an employer group disability plan taxable to the employee?
If the employer provides group term disability insurance as a nontaxable fringe benefit to the employee, then benefits received under the plan are taxable to the employee. However, per IRS Revenue Ruling 2004-55, the employer can have the plan allow...
Students and parents should know the taxability rules of scholarships and grants
If you or your student receive a scholarship, a fellowship grant, or other grant, all or part of the amounts you receive may be tax-free, but there are parts that may not qualify and should be included as part of...