FIFO or LIFO: Which Is Right for Your Business?
The way businesses value inventory can affect their taxes. It also affects the financial statements companies present to banks when they apply for loans. Businesses generally are allowed to use one method for their taxes and another for their financial statements. Although this can get complicated, choosing the best option for your business may allow […]
Can You Take Advantage of the Research and Development Tax Credit?
Many manufacturing companies fail to take advantage of the generous research and development (R&D) tax credit simply because they don’t have staff working in a lab. The Internal Revenue Service’s (IRS) definition of R&D is codified at Internal Revenue Code Section 41 and its related regulations — and it may not be exactly what you […]
Small PPP Loan Borrowers Get Big Break
According to a recent release from the Small Business Administration, borrowers can apply for forgiveness of their PPP loan using new SBA Form 3508S if the total PPP loan amount they received from their lender was $50,000 or less. “SBA Form 3508S requires fewer calculations and less documentation for eligible borrowers. Borrowers that use SBA Form 3508S are exempt from reductions in loan forgiveness amounts based on reductions […]
When the IRS Wants to Audit Your Business
You may be surprised to learn that not every audit notification you receive will be legitimate. So, first, make sure you received an official audit notification. The Internal Revenue Service (IRS) will notify you either by letter or by a phone call followed by a letter. The IRS does not notify taxpayers about audits through email, so […]
Choosing a Business Structure: C Corps, LLCs, PCs and S Corps
How to structure your business is one of the first, and most important, considerations a business must make. Following are details about four corporate structures available to businesses. C Corporations C corporations are considered to be the business structure of choice for many businesses, particularly for those selling goods. Unlike sole proprietorships, C corps shield […]
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 […]
