IRS Issues Final Regs on Meals and Entertainment
The IRS has noted that the 2017 TCJA generally eliminated the deduction for any expenses related to activities typically considered entertainment, amusement or recreation. However, taxpayers may still deduct business expenses related to food and beverages if certain requirements are met. And that distinction has led to a lot of misunderstandings. The IRS resolves much […]
Annual Financial Statement Reports Required for Marijuana Businesses in Michigan
The Michigan Marijuana Regulatory Agency (MRA) in a bulletin issued on June 3, 2020 issued a bulletin announcing the annual financial statements (AFS) requirements for all businesses and individuals with marijuana licenses on or before December 31, 2019. The requirements for the AFS are as follows: The report is an agreed-upon procedures engagement that must […]
When Identity Theft Hits Your Taxes
When someone uses your stolen personal information — your Social Security number, for example — to file a tax return claiming a fraudulent refund, that’s considered tax-related identity theft. How do you know if you’ve been a victim? It often starts with a letter from the IRS saying there’s a problem with your return. Here […]
CARES Act Adds Flexibility to Net Operating Losses
Revenue Procedure 2020-24 provides guidance to taxpayers with net operating losses that are carried back under the CARES Act by providing procedures for: Waiving the carryback period in the case of a net operating loss arising in a taxable year beginning after Dec. 31, 2017, and before Jan. 1, 2021. Disregarding certain amounts of foreign income […]
IRS Gives Break on Flexible Spending Plans
The IRS has granted relief for 125 cafeteria plans, health flexible spending arrangements and dependent care assistance programs. In Notice 2020-29, the IRS has: Extended claims periods for taxpayers to apply unused amounts remaining in a health FSA or dependent care assistance program for expenses incurred through December 31, 2020. Expanded the ability of taxpayers to […]
Guide to Preparing for an Audit of Your Nonprofit
Having an independent audit is a significant endeavor. Not only is it an expense, but it also requires a lot of preparation. The auditors will need access to all of the information they need to help them carry out their mandate — that is, examining your organization’s financial records, accounts, business transactions, accounting practices and […]
