Skip to content.

Tax News

Comparing the House and Senate tax reform bills
Nov. 10, 2017
November 9 was an eventful day in Washington, with both chambers of Congress rushing to hammer out a tax reform package. The House Ways and Means Committee made amendments to and approved the Tax Cuts and Jobs Act, which they introduced the previous week. And the Senate Finance Committee released "policy highlights" for its proposed version of a tax plan.
House leadership unveils sweeping tax reform legislation
Nov. 3, 2017
On November 2, following months of discussion, the U.S. House Ways and Means Committee released its highly anticipated bill to reform the tax code, The Tax Cuts and Jobs Act. Here's a brief rundown of some of the most significant provisions included in the 429-page bill. Generally, the changes would go into effect after December 31, 2017, but there are some exceptions.
Independent contractor status remains a hot spot for IRS attention
Oct. 20, 2017
Business owners may prefer to classify workers as independent contractors for a number of reasons, but there are many detailed requirements that must be met for the classification to stand up to IRS scrutiny.
Employee misclassification ruling has major implications for businesses that use contractors
Oct. 18, 2017
Misclassifying employees can be a costly mistake for your business. The IRS has been particularly aggressive in its pursuit of worker misclassification in recent years, putting you at real risk if you have misclassified employees as contractors.
New IRS per diem rates for business travel are now in effect
Oct. 18, 2017
If you use federal per diem rates to reimburse employees for business-travel expenses, make sure you're utilizing the updated IRS per diem rates, which went into effect Oct. 1, 2017. The new rates apply for any business-related travel expenses incurred on or after October 1 through Sept. 30, 2018.
Operating across state lines presents tax risks or possibly rewards
Aug. 7, 2017
It's a smaller business world after all. With the ease and popularity of e-commerce, as well as the incredible efficiency of many supply chains, companies of all sorts are finding it easier than ever to widen their markets. Expanding one's business has become so feasible that many businesses quickly find themselves crossing state lines.
Donating a vehicle might not provide the tax deduction you expect
Aug. 7, 2017
Not all charitable donations are created equal. Some provide larger deductions than others, and how much or even what you donate might not necessarily be the most important factors. How the charity uses your donation can also affect your deduction.
Business owners: When it comes to IRS audits, be prepared
Aug. 7, 2017
If you recently filed your 2016 income tax return (rather than filing for an extension), you may now wonder whether your business could face an IRS audit.
Doing business in California? Consider this tax credit.
July 14, 2017
If you currently conduct business in California, or if you're contemplating expansion or relocation, you should consider applying for the California Competes Tax Credit (CCTC).
IRS alerts public of new phone scam
July 14, 2017
Tax season may have come and gone, but there's no offseason for tax-scammers. The IRS recently issued a warning about a prevalent phone scam that's been reported nationwide this summer. Taxpayers should stay on their toes, and be wary of anyone calling them "from the IRS" demanding money.
Pay attention to details when selling investments
July 14, 2017
The tax consequences of the sale of an investment, as well as your net return, can be affected by a variety of factors. You're probably focused on considerations such as the cost of your investment vs. how much you're selling it for, whether you held the investment long-term (more than one year), and the tax rate that will apply to your situation.
Real estate investor vs. professional: Why it matters
July 14, 2017
Income and losses from investment real estate or rental property are passive by definition unless you're a real estate professional. Why does this distinction matter? Passive income may be subject to the 3.8 percent net investment income tax (NIIT), and passive losses generally are deductible only against passive income, with the excess being carried forward.
Tennessee Center for Family Business
June 6, 2017
KraftCPAs is pleased to be a sponsor of the newly formed Tennessee Center for Family Business, which hosted its inaugural event in May. Founded by husband/wife team Greg and Jennifer Lewis, the TNCFB aims to be an invaluable resource for family-owned businesses across the state. Their mission includes connecting local business owners and conducting educational seminars addressing issues commonly faced by family businesses.
Save or shred?
May 30, 2017
You may have breathed a sigh of relief now that the April 18 tax deadline has come and gone. However, if your office is strewn with reams of paper consisting of years' worth of tax returns, receipts, canceled checks, bank and brokerage statements, and other financial records, you probably want to get rid of what you can. Follow these retention guidelines (for both individuals and businesses) as you begin to clean up after another tax season.
Tennessee allows annualized method to determine excise tax estimated payments
May 10, 2017
On April 19, Governor Haslam signed House Bill 320 that amended Tennessee law relative to estimated franchise and excise tax payments.
IMPROVE Act will raise some taxes while reducing others
May 10, 2017
Governor Haslam signed the Improving Manufacturing, Public Roads and Opportunities for a Vibrant Economy Act (the IMPROVE Act) on April 26. Originally proposed in late January of this year, the Act includes a new transportation plan as well as tax cuts (also referred to as tax inequities).
Do you know the tax implications of your C corporation's buy-sell agreement?
May 5, 2017
All private companies with more than one owner no matter how they are structured should have a buy-sell agreement to spell out how ownership will change hands should an owner depart. For businesses structured as C corporations, the agreements also have significant tax implications that are important to understand.
Don't forget April 1 deadline to take required retirement plan distributions
March 21, 2017
Taxpayers who turned age 70 during 2016 (in most cases) must start receiving required minimum distributions (RMDs) from individual retirement accounts (IRAs) and workplace retirement plans by Saturday, April 1, 2017. A 50 percent tax normally applies to any required amounts not received by the April 1 deadline.
New IRS regulations target earnings stripping
March 10, 2017
The IRS has issued much-anticipated final regulations intended to keep multinational companies from moving their profits offshore to avoid paying U.S. income taxes. The regs are part of a larger Treasury Department campaign against corporate inversions, whereby a U.S. company merges with a foreign firm and then changes its tax address (domicile) to the foreign country. In particular, the regs address earnings stripping, a practice commonly used to minimize taxes after an inversion.
Two ways to save for education costs
March 8, 2017
As the price of a college education continues to skyrocket, many parents (and grandparents) are looking for ways to save for future higher education costs. There are several taxpayer-friendly ways to save for a child's or grandchild's education. The two most popular options are qualified tuition programs (commonly known as Section 529 plans) and Coverdell Education Savings Accounts (ESAs).
IRS continues efforts to identify and tax offshore accounts
March 8, 2017
The Internal Revenue Service (IRS) announced recently that avoiding taxes by hiding money or assets in unreported offshore accounts remains on its 2017 list of tax scams known as the "Dirty Dozen." While there are legitimate reasons for maintaining financial accounts abroad, there are reporting requirements that need to be fulfilled. U.S. taxpayers who maintain such accounts and who do not comply with reporting requirements are breaking the law and risk significant fines, as well as the possibility of criminal prosecution.
Syndicated conservation easement transactions get a big
March 6, 2017
Conservation easements are one of the most powerful tools for preserving private lands in the United States today. The use of conservation easements has successfully protected millions of acres of wildlife habitat and open space, keeping land in private hands and generating public benefits.
Deduct all of the mileage you're entitled to deduct but not more
March 1, 2017
Rather than keeping track of the actual cost of operating a vehicle, employees and self-employed taxpayers can use a standard mileage rate to compute their deduction related to using a vehicle for business. You might also be able to deduct miles driven for other purposes, including medical, moving and charitable purposes.
When combining business and vacation travel, what can you deduct?
March 1, 2017
When your business travel takes you to attractive locations, you may consider staying a bit longer to enjoy a few days of rest and relaxation. If you go on a business trip within the United States and tack on some vacation days, you can deduct some of your expenses. But exactly what can you write off?
Do you need to file a 2016 gift tax return by April 18?
March 1, 2017
Last year you may have made significant gifts to your children, grandchildren or to other heirs as part of your estate planning strategy. Perhaps you just wanted to provide loved ones with some helpful financial support. Regardless of the reason for making a gift, it's important to know under what circumstances you're required to file a gift tax return.
Sales tax return filing frequency is about to change for some Tennessee businesses
Feb. 15, 2017
The Tennessee Department of Revenue is in the process of implementing a new tax system called TNTAP, or the Tennessee Taxpayer Access Point. One of the benefits of TNTAP is that taxpayers will file a consolidated sales tax return. So if your business has more than one location that reports sales tax, you will report sales from all locations on one tax return.
Dangerous W-2 phishing scam evolving
Feb. 14, 2017
The Internal Revenue Service has issued an alert, warning all employers that the Form W-2 email phishing scam is back in action. The W-2 scam, which first appeared last year, is circulating earlier in the tax season and to a broader cross-section of organizations, including not-for-profit organizations, school districts, tribal casinos, chain restaurants, temporary staffing agencies, healthcare providers and shipping and freight companies. Those businesses that received the scam email last year also are reportedly receiving it again this year.
What you need to know about the tax treatment of ISOs
Feb. 10, 2017
Incentive stock options allow you to buy company stock in the future at a fixed price equal to or greater than the stock's fair market value on the grant date. If the stock appreciates, you can buy shares at a price below what they're then trading for. However, complex tax rules apply to this type of compensation.
The investment interest expense deduction: Less beneficial than you might think
Feb. 1, 2017
Investment interest interest on debt used to buy assets held for investment, such as margin debt used to buy securities generally is deductible for both regular tax and alternative minimum tax purposes. But special rules apply that can make this itemized deduction less beneficial than you might think.
New law clears the way for small businesses to offer standalone HRAs
Jan. 11, 2017
When President Obama signed into law the 21st Century Cures Act on Dec. 13, 2016, most of the media coverage focused on the provisions related to medical innovation. But the law also includes some good news for small businesses that have been prohibited in recent years from providing their employees with Health Reimbursement Arrangements (HRAs). Specifically, beginning Jan. 1, 2017, qualified small employers can use HRAs to reimburse employees who purchase individual insurance coverage, rather than providing employees with costly group health plans.
Help prevent tax identity theft by filing early
Jan. 11, 2017
If you're like many Americans, you might not start thinking about filing your tax return until close to this year's April 18 deadline. You might even want to file for an extension so you don't have to send your return to the IRS until October 16.
Few changes to retirement plan contribution limits for 2017
Jan. 9, 2017
As the new year begins, many taxpayers resolve to save more for retirement. Retirement plan contribution limits are indexed for inflation, but with inflation remaining low, most of the limits remain unchanged for 2017. The only limit that has increased from the 2016 level is for contributions to defined contribution plans, which has gone up by $1,000.
New website to make filing Tennessee taxes easier
Jan. 9, 2017
The Tennessee Department of Revenue is currently implementing a new website called TNTAP, or the Tennessee Taxpayer Access Point, which is scheduled to launch in March. Promoted as "fast, easy and free," the website allows taxpayers to:
Don't forget Jan. 31, 2017, tax deadlines
Jan. 6, 2017
Employers have several tax forms to submit by Jan. 31, 2017. Below are a few items you'll want to be sure you have submitted by that date.
Some tax return due dates have changed
Jan. 6, 2017
The IRS has changed the filing due dates for certain tax returns beginning with tax years starting after Dec. 31, 2015 (so starting with the 2016 return that will be due in 2017). Because limited liability companies (LLCs) taxed as partnerships are the preferred entity for Tennessee businesses, this change will impact a great deal of our clients.
2017 standard mileage rates for business, medical and moving purposes
Dec. 30, 2016
The Internal Revenue Service has issued the 2017 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
2016/2017 payroll tax reminders
Dec. 30, 2016
With 2017 right around the corner, employers need to be aware of payroll tax changes that are about to take effect. Below is an overview of some of the changes, prepared by Jackie Cook, a senior manager in our entrepreneurial services group. Please contact your KraftCPAs advisor if you have questions or need additional information.
Can you pay bonuses in 2017 but deduct them on your 2016 return?
Dec. 16, 2016
In some situations, businesses can deduct employee bonuses that were earned during the previous tax year if the bonuses are paid within 2 months after the end of that year (by March 15 for a calendar-year company). But this favorable tax treatment isn't always available.
Reduce your 2016 taxes by implementing last-minute tax-saving tips
Dec. 16, 2016
Although the year is quickly drawing to a close, there's still time to reduce your 2016 tax liability; but you must act by December 31. Here are a few actions to consider.
Deadline extended for ACA information reporting to employees (but not to the IRS)
Dec. 14, 2016
The IRS has again extended the deadline for employers subject to the Affordable Care Act's (ACA's) information reporting requirements to meet their obligations to employees, but only by 30 days, from Jan. 31, 2017, to March 2, 2017. The deadline for filing the required information reporting forms with the IRS has not been extended.
Ensure your year-end donations will be deductible on your 2016 return
Nov. 30, 2016
Donations to qualified charities are generally fully deductible, and they may be the easiest deductible expense to time to your tax advantage. After all, you control exactly when and how much you give. To ensure your donations will be deductible on your 2016 return, you must make them by year-end to qualified charities.
There's still time to reduce your 2016 tax bill
 by buying business assets
Nov. 30, 2016
In order to take advantage of two important depreciation tax breaks, a business must place the assets in service by the end of the tax year. So you still have time to act for 2016.
Deferred compensation rules may require that you act before year-end
Nov. 28, 2016
Executives who wish to defer 2017 income into the 2018 calendar year or beyond, will need to act before Dec. 31, 2016. Here's why.
Beware of income-based limits on itemized deductions and personal exemptions
Nov. 16, 2016
Many tax breaks are reduced or eliminated for higher-income taxpayers. Two of particular note are the itemized deduction reduction and the personal exemption phaseout.
Many 2017 cost-of-living adjustments increase slightly
Nov. 16, 2016
The IRS recently issued its 2017 cost-of-living adjustments. Because inflation remains relatively in check, many amounts increase only slightly, and some stay at 2016 levels. As you implement 2016 year-end tax planning strategies, be sure to take these 2017 adjustments into account.
Election outcome likely to result in major tax law changes
Nov. 16, 2016
The election of Donald Trump as President of the United States, along with Republicans retaining control of both chambers of Congress, could result in an overhaul of the U.S. tax code.
FASB unveils new accounting standard for not-for-profits
Nov. 7, 2016
For the first time in more than two decades, the Financial Accounting Standards Board (FASB) has issued major changes to the accounting standards for not-for-profit organizations' financial statement presentation. Accounting Standards Update (ASU) No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities, affects just about every not-for-profit organization, including charities, foundations, private colleges and universities, nongovernmental healthcare providers, cultural institutions, religious organizations and trade associations.
To deduct business losses, you may have to prove material participation
Oct. 21, 2016
You can only deduct losses from an S corporation, partnership or LLC if you "materially participate" in the business. If you don't, your losses are generally "passive" and can only be used to offset income from other passive activities. Any excess passive loss is suspended and must be carried forward to future years.
IRS warns of fake tax bills
Oct. 11, 2016
The Internal Revenue Service recently issued an alert to taxpayers and tax professionals to be on guard against fake emails purporting to contain an IRS tax bill related to the Affordable Care Act.
Don't miss out on Tennessee franchise/excise tax credits
Oct. 11, 2016
Is your company missing out on Tennessee tax credits? Many companies overlook or are simply unaware of these significant tax-saving credits. The two most commonly used tax credits in Tennessee are the Jobs Tax Credit (JTC) and the Industrial Machinery Credit (IMC).
Research and experimentation tax credit made permanent and expanded
Sep. 21, 2016
As part of the PATH Act of 2015, Congress made permanent the Research and Experimentation credit (better known as the R&D credit) that expired at the end of 2014. Thanks to this change, businesses now have the ability to make long-range plans knowing the R&D credit will be available to them in the future.
Does your business have a valid buy-sell agreement in place?
Sep. 21, 2016
Operating a business without a valid buy-sell agreement is like driving a car without insurance. Because business owners are often so focused on the current demands of running a business, planning for possible catastrophes often falls through the cracks, especially if the owners are young and healthy. Failure to execute an agreement or to update an old buy-sell for ownership changes can cause financial distress and even tear a company apart if tragedy strikes.
Now's the time to think about bunching itemized deductions
Sep. 21, 2016
As year-end approaches, consider the strategy of "bunching" itemized deductions that might naturally be spread over two years into one. Deductions such as property tax and mortgage interest not due until early 2017 can be paid during 2016 resulting in a current tax deduction.
Documentation is the key to business expense deductions
Sep. 21, 2016
If you have incomplete or missing records and get audited by the IRS, your business will likely lose out on valuable deductions. Here are two recent U.S. Tax Court cases that help illustrate the rules for documenting deductions.
Big financial reporting changes in store for not-for-profit organizations
Aug. 26, 2016
The Financial Accounting Standards Board (FASB) has issued a highly anticipated accounting standard that will impact several aspects of a nonprofit organization's financial statements. This new standard represents some of the most significant changes since 1993. The goals behind the new standard include enhancing the transparency, increasing the consistency, and simplifying certain aspects of the financial reporting model.
Stock market volatility can cut tax 
on a Roth IRA conversion
Aug. 24, 2016
This year's stock market volatility can be unnerving, but if you have a traditional IRA, this volatility may provide a valuable opportunity. It can allow you to convert your traditional IRA to a Roth IRA at a lower tax cost.
QSB stock offers two valuable tax benefits
Aug. 24, 2016
If you own qualified small business (QSB) stock, you can enjoy two valuable tax benefits.
Over 70 1/2? Don't forget to take required minimum distributions
Aug. 22, 2016
Take required minimum distributions (RMD) from your IRA or 401(k) plan (or other employer-sponsored retirement plan) if you have reached age 70.
Giving away assets? Be tax-smart about it
Aug. 19, 2016
Giving away assets during your life will help to reduce the size of your taxable estate, which is beneficial if you have a large estate that could be subject to estate taxes. For 2016, the lifetime gift and estate tax exemption is $5.45 million (twice that for married couples with proper estate planning strategies in place).
Should you make a charitable IRA rollover in 2016?
Aug. 19, 2016
Last year a break valued by many charitably inclined retirees was made permanent -- the charitable IRA rollover. If you're age 70 or older, you can make direct contributions up to $100,000 annually from your IRA to qualified charitable organizations without owing any income tax on the distributions.
Entrepreneurs: What can you deduct and when?
July 29, 2016
Starting a new business is exciting. But before you even open the doors, you generally have to spend a lot of money. You may have to train workers and pay for rent, utilities, marketing and more.
Section 179 expensing election could mean valuable tax break for small businesses
July 29, 2016
Section 179 of the Internal Revenue Code (Sec. 179) allows small businesses to elect to deduct immediately or "expense" the cost of certain tangible personal property acquired and placed in service during the tax year, instead of recovering the costs more slowly through depreciation deductions.
Recent tax law changes offer tax breaks and planning opportunities
July 27, 2016
For years many companies have adopted a wait-and-see approach to purchasing fixed assets because Congress was in the habit of passing "extender" provisions at or after the calendar year-end. Thanks to the Protecting Americans from Tax Hikes (PATH) Act, bonus depreciation has been extended through 2019, making tax planning a bit easier. Although the Act reinstated bonus depreciation for several years, it also provided for a gradual reduction from 50 percent in 2015 through 2017, to 40 percent in 2018 and to 30 percent in 2019. Bonus depreciation is set to expire after 2019 although certain longer-lived and transportation property will qualify until 2020.
What 2015 tax records can you toss once you've filed your return?
July 11, 2016
The short answer is: none. You need to hold on to all of your 2015 tax records for now. But now is a great time to take a look at your records for previous tax years and determine what you can purge.
Awards of RSUs can provide tax deferral opportunity
July 11, 2016
Executives and other key employees are often compensated with more than just salary, fringe benefits and bonuses: They may also be awarded stock-based compensation, such as restricted stock or stock options. Another form that's becoming more common is restricted stock units (RSUs). If RSUs are part of your compensation package, be sure you understand the tax consequences and a valuable tax deferral opportunity.
Electronically file information returns with IRS by June 30
June 27, 2016
Self-insured employers, applicable large employers and health coverage providers are reminded that the June 30 deadline to electronically file information returns with the IRS is approaching.
Throw a company picnic for employees this summer and enjoy larger deductions
June 22, 2016
Many businesses host a picnic for employees in the summer. It's a fun activity for your staff and you may be able to take a larger deduction for the cost than you would on other meal and entertainment expenses.
June 30 deadline looms for executors of large estates
June 20, 2016
The executors of some estates now have a new filing requirement. Form 8971, Information Regarding Beneficiaries Acquiring Property From a Decedent, was developed to satisfy the new basis consistency provisions enacted on July 31, 2015.
Good news for businesses on the Tennessee tax front
May 23, 2016
Tennessee has made several taxpayer-friendly law changes related to franchise and excise estimated tax payments.
Hall tax to be repealed
May 23, 2016
On Friday, May 20, Governor Haslam signed into law Senate Bill 47 which will reduce and eventually eliminate Tennessee's Hall investment income tax on some dividends and interest. Under this law, the Hall income tax rate will decrease from 6 percent to 5 percent for tax year 2016, affecting tax returns due next April. The law "establishes the legislative intent" that the Hall income tax be eliminated on or before Jan. 2, 2021, through annual reductions of one percent per year.
Don't miss April 1 deadline for required minimum distributions
March 22, 2016
Taxpayers who attained age 70 in 2015 have until April 1, 2016, to begin taking required minimum distributions (RMDs) from their traditional IRAs. Lifetime distributions are not required to be taken from Roth IRAs at any age.
IRS offers guidance to employers who plan to claim the Work Opportunity Tax Credit
March 22, 2016
The IRS has recently granted "transitional relief" to eligible employers who are planning to claim the Work Opportunity Tax Credit (WOTC). The relief outlined in IRS Notice 2016-22 comes in the form of an extended deadline until June 29, 2016 to file a form necessary to claim the credit for certain eligible workers.
Is an audit in your partnership's future?
March 22, 2016
In addition to raising the federal debt ceiling and lifting some mandatory spending caps, the Bipartisan Budget Act of 2015, signed into law in November, also includes tax provisions that revise partnership audit rules. The end result of the revised rules is that audits of master limited partnerships, investment funds and other business entities organized as partnerships are likely to increase.
Deduct home office expenses if you're eligible
March 7, 2016
Today it's becoming increasingly common to work from home. But just because you have a home office space doesn't mean you can deduct expenses associated with it.
IRS' Dirty Dozen
March 7, 2016
Identity theft topped this year's list of the IRS's "Dirty Dozen" tax scams with phone scams and phishing schemes also getting special mention.
How to max out education-related tax breaks
March 7, 2016
If there was a college student in your family last year, you may be eligible for some valuable tax breaks on your 2015 return. To max out your education-related breaks, you need to see which ones you're eligible for and then claim the one(s) that will provide the greatest benefit. In most cases you can take only one break per student, and, for some breaks, only one per tax return.
Significant change to Social Security affects some taxpayers
Feb. 22, 2016
The Bipartisan Budget Act of 2015 included several significant changes to how Social Security benefits can be claimed, but certain individuals still have a small window of opportunity to maximize their benefits.
PATH Act reduces tax for many individuals on their 2015 return and beyond
Feb. 12, 2016
Congress passed the Protecting Americans from Tax Hikes Act of 2015 (the PATH Act) in December, creating opportunities for many individuals to reduce their personal tax liability. The new law is more significant than some tax "extenders" legislation in recent years because, in addition to extending relief, the PATH Act makes quite a few tax breaks permanent and also enhances some breaks. Let's take a look at some of the breaks that may help you save tax on your individual return in 2015 and beyond.
2016 Tax Calendar
Jan. 29, 2016
To help you make sure you don't miss any important 2016 deadlines, we've provided this summary of when various tax-related forms, payments and other actions are due.
File early to avoid tax identity theft
Jan. 27, 2016
If you're like many Americans, you may not start thinking about filing your tax return until the April 15 deadline (this year, April 18) is just a few weeks or perhaps even just a few days away. But there's another date you should keep in mind: January 19. That's the date the IRS began accepting 2015 returns, and filing as close to that date as possible could protect you from tax identity theft.
Why investing in small-business stock may make more tax sense than ever
Jan. 25, 2016
By purchasing stock in certain small businesses, you can not only diversify your portfolio but also enjoy preferential tax treatment. And under a provision of the tax extenders act signed into law this past December (the PATH Act), such stock is now even more attractive from a tax perspective.
Two extended credits can save businesses taxes on their 2015 returns
Jan. 13, 2016
The Protecting Americans from Tax Hikes Act of 2015 (PATH Act) extended a wide variety of tax breaks, in some cases making them permanent. Extended breaks include many tax credits which are particularly valuable because they reduce taxes dollar-for-dollar (compared to deductions, for example, which reduce only the amount of income that's taxed).
New law hikes penalties for tax information reporting failures, errors and omissions
Jan. 13, 2016
Making mistakes on W-2s or 1099s could cost you more this year than in the past. A new law passed in 2015 (the Trade Preferences Extension Act of 2015) included a provision that will greatly increase the penalties on taxpayers who fail to file (or make errors on) information reporting returns such as Form W-2 and 1099, as well as certain forms required by the Affordable Care Act (ACA). Section 806 of the act increases by as much as 150 percent the potential penalties.
IRS issues deadline extensions for ACA information reporting
Jan. 13, 2016
In an effort to help employers subject to the Affordable Care Act's (ACA's) information reporting requirements meet those obligations, the IRS has extended two important deadlines. Employers now have an additional two months to provide employees Form 1095-B, "Health Coverage," and Form 1095-C, "Employer-Provided Health Insurance Offer and Coverage."
IRS raises tangible property expensing threshold for small businesses
Jan. 13, 2016
The Internal Revenue Service (IRS) recently announced that it has simplified the paperwork and recordkeeping requirements for small businesses by raising from $500 to $2,500 the safe harbor threshold for deducting certain capital items. The change takes effect starting with tax year 2016 and affects only those businesses that do not prepare audited financial statements.
Feb. 1 tax deadline approaches with tougher penalties for missing it
Jan. 4, 2016
Employers have several tax forms to submit by Feb. 1, 2016. The due date for these forms, which is typically 
Jan. 31, will be Feb. 1 this coming year because Jan. 31 falls on a Sunday. Below are a few items you'll want to 
be sure you have submitted by that date.
Employees vs. independent contractors
Dec. 29, 2015
An employer must generally withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment taxes on wages paid to an employee. An employer does not generally have to withhold or pay any taxes on payments to independent contractors.