Determining “reasonable compensation” is a critical issue for owners of C corporations and S corporations. If the IRS believes an owner’s compensation is unreasonably high or low, it may disallow certain deductions or reclassify payments, potentially leading to penalties, back taxes and interest. However, by proactively following specific steps, owners can help ensure that their compensation is perceived as reasonable and deductible.

The month-end close is a pain point for many small to midsize businesses. While internal accounting teams often aim to wrap up the close within three days, a recent survey found that half the respondents actually take six days or longer to close the books. What can your organization do to help streamline this process? Leveraging cloud-based technology tools like QuickBooks® can be a game changer.

In today’s volatile economic climate, organizations face mounting pressures that can increase the risk of fraudulent activities. Auditors play a pivotal role in identifying and mitigating these risks through comprehensive fraud risk assessments and tailored audit procedures.

Annual fraud risk assessments are valuable tools for identifying obvious threats and documenting the internal controls in place to address them. However, these assessments may overlook subtler, evolving, and behavior-driven risks that can lead to serious financial and reputational harm if exploited.

Even successful businesses experience occasional down years. Fortunately, the federal tax code provides a way to help offset those losses, potentially reducing taxable income in future years. It's called the net operating loss (NOL) deduction, and it can be a valuable strategy for businesses facing fluctuating income.

Inheriting assets from a loved one can come with a significant—but often misunderstood—tax benefit known as the step-up in basis. This provision can reduce or eliminate capital gains tax on inherited property. Here's what you need to know.

When valuing a private business, IRS Revenue Ruling 59-60 remains one of the most foundational guides for determining value. Among the key factors it identifies is "the condition and outlook of the specific industry." But how exactly does the industry risk factor fit into the valuation, and how do investors and appraisers measure it?

If you're self-employed, run a small business, or earn rental or investment income, quarterly estimated tax payments may be critical to your tax compliance. These payments cover both income tax and, if applicable, self-employment tax. Missing a payment or miscalculating what you owe can lead to penalties and interest, even if you're due a refund at tax time.

In many popular vacation destinations, property values and insurance costs have soared. If your vacation home has appreciated significantly, now may be a good time to sell. While you could simply sell and accept the tax bill, three tax-saving strategies are worth considering.