There is no single process that everybody follows when purchasing a business, and many factors determine whether a business, once bought, will fulfill its desired purpose. But if there is one thing that will mitigate the chances of failure and increase the chances of success, it is conducting detailed due diligence on the company you intend to buy – before making the purchase permanent and irreversible.

The IRS has issued new guidance providing transitional relief related to recent legislative changes to the age at which taxpayers must begin taking required minimum distributions (RMDs) from retirement accounts. The guidance in IRS Notice 2023-54 also extends relief already granted to taxpayers covered by the so-called “10-year rule” for inherited IRAs and other defined contribution plans.

Government officials saw a large increase in the number of new businesses launched during the COVID-19 pandemic. And the U.S. Census Bureau reports that business applications are still increasing slightly (up 0.4% from April 2023 to May 2023). The Bureau measures this by tracking the number of businesses applying for Employer Identification Numbers.

“Thousands of people have lost millions of dollars and their personal information to tax scams,” according to the IRS. The scams may come in through email, text messages, telephone calls or regular mail. Criminals regularly target both individuals and businesses and often prey on the elderly.

Accrual-basis financial statements are considered by many to be the gold standard in financial reporting. But with the increasing cost and complexity of today’s accounting rules — in particular, the updated lease guidance that went into effect last year — some private companies are seeking a simpler alternative to U.S. Generally Accepted Accounting Principles (GAAP). The solution for some is to switch from accrual to income tax-basis reporting.

The IRS recently released its audit statistics for the 2022 fiscal year and fewer taxpayers had their returns examined as compared with prior years. But even though a small percentage of returns are being chosen for audits these days, that will be little consolation if yours is one of them.

Many people travel for their job — some for an occasional conference and some travel year-round. Whatever their time on the road, business travelers should know how and when to deduct business travel expenses.

The composition of today’s workforce has evolved significantly compared to a decade or two ago. With the emergence of the gig economy in the early 2000s, there has been a notable shift, as nearly one-third of employed Americans now operate as independent contractors or are employed by self-employed individuals. While self-employment presents an enticing prospect for individuals seeking autonomy, freedom from rigid hierarchies, and the ability to shape one’s professional trajectory while enjoying a more flexible work schedule, it’s important to recognize that this newfound independence comes with its own considerations, particularly in the realm of taxation, which uniquely affects self-employed individuals and distinguishes them from traditional W-2 employees.

As they’ve promised, the IRS is stepping up enforcement of ERC claims and sending out examination letters to companies who claimed ERC credits in 2020 and 2021. Wondering what information the IRS is looking for if your company is selected for examination? We have the details here.