Can You Deduct Contingent Attorneys’ Fees?

Sometimes attorneys will charge clients contingent fees based on the outcome of a case, rather than billing a flat or hourly fee for services rendered. However, the federal income tax treatment of contingent fees paid to an attorney out of a taxable nonbusiness judgment or settlement has historically been a source of confusion and litigation between taxpayers and the IRS. (more…)

5 Major Tax-Favored Retirement Plan Changes for Individuals under New Law

After months of negotiations, Congress finally passed the long-awaited Setting Every Community Up for Retirement Enhancement 2.0 Act (SECURE 2.0). This part of the omnibus funding package builds on the SECURE Act of 2019 and contains major changes in the required minimum distribution (RMD) rules and other retirement provisions. Here are five major taxpayer friendly changes that will kick in over the next few years. (more…)

KWC Names Wendy Kurz As New Principal

We are pleased to announce the promotion of Wendy Kurz to Principal with the firm.

“I am pleased to introduce Wendy Kurz as a principal with the firm,” said Connie Hammell, Managing Principal of KWC. “She is a responsive business partner to her many clients, bringing years of tax experience. I am confident she will contribute in every aspect to the firm’s future.”

Wendy is a Principal in KWC’s Business Services Group. She has more than 20 years of experience providing tax planning & preparation and business consulting services. She is accomplished in many industries including professional services, real estate, and construction.

Wendy’s primary focus is working with privately held businesses, many with multi-state operations, as well as high net worth individuals.

Wendy is a graduate of Florida State University. Outside of KWC, Wendy enjoys spending time with her family and traveling to any beach location possible.

Transportation Fringe Benefits for Nonprofits Follow a Twisting Path

Does your not-for-profit provide transportation fringe benefits to staffers? In 2017, the Tax Cuts and Jobs Act (TCJA) repealed a tax law that would have imposed unrelated business income tax (UBIT) on organizations that provide such benefits. However, though transportation benefits remain exempt from tax for participating employees, nonprofits can no longer deduct the costs.
Let’s take a closer look at the available transportation benefits and changes to tax law in this area. (more…)

What Business Owners Should Know About Financial Forecasting

Is your business ready to tackle the challenges and opportunities that lie ahead in 2023? Financial statements show how a company has performed in the past. But historical data doesn’t necessarily predict future performance, especially in an uncertain, volatile market. As part of your planning, it’s important for management to prepare forecasted statements. (more…)

Tax Treatment of Debt Forgiveness: Watch Out for Tax Bills Delivered COD

Debtors typically experience a feeling of relief when a creditor agrees to forgive their debt. But that feeling often is replaced by shock and confusion when they learn they owe taxes on so-called “cancellation of debt” (COD) income. Read on to learn the tax rules for COD income and how they might affect your tax situation. (more…)

Important Tax Figures for 2023

The following table provides some important federal tax information for 2023, as compared with 2022. Many of the dollar amount increases are higher than in past years due to inflation. 

Social Security/ Medicare 2023 2022
Social Security Tax Wage Base $160,200
Medicare Tax Wage Base No limit
No limit
Employee portion of Social Security 6.2% 6.2%
Employee portion of Medicare 1.45% 1.45%
Individual Retirement Accounts 2023 2022
Roth IRA Individual, up to 100% of earned income $6,500 $6,000
Traditional IRA Individual, up to 100% of earned Income $6,500 $6,000
Roth and traditional IRA additional annual “catch-up” contributions for account owners age 50 and older $1,000 $1,000
Qualified Plan Limits 2023 2022
Defined Contribution Plan limit on additions (Sections 415(c)(1)(A)) $66,000 $61,000
Defined Benefit Plan limit on benefits (Section 415(b)(1)(A)) $265,000 $245,000
Maximum compensation used to determine contributions $330,000
401(k), SARSEP, 403(b) Deferrals (Section 402(g)), & 457 deferrals (Section 457(b)(2)) $22,500 $20,500
401(k), 403(b), 457 & SARSEP additional “catch-up” contributions for employees age 50 and older $7,500 $6,500
SIMPLE deferrals (Section 408(p)(2)(A)) $15,500 $14,000
SIMPLE additional “catch-up” contributions for employees age 50 and older $3,500 $3,000
Compensation defining highly compensated employee (Section 414(q)(1)(B)) $150,000 $135,000
Compensation defining key employee (officer) in a top-heavy plan
$215,000 $200,000
Compensation triggering Simplified Employee Pension contribution requirement (Section 408(k)(2)(c)) $750 $650
Driving Deductions 2023 2022
Business mileage, per mile 65.5 cents
58.5 cents from Jan. 1 to June 30
62.5 cents from July 1 to Dec. 31
Charitable mileage, per mile 14 cents (the rate is set by statute)
14 cents (the rate is set by statute)
Medical and eligible moving*, per mile 22 cents
18 cents from Jan. 1 to June 30
22 cents from July 1 to Dec. 31
Business Equipment 2023 2022
Maximum Section 179 deduction $1.16
Phase out for Section 179 $2.89
Business Meals 2023 2022
General deduction for eligible business-related food and beverage expenses 50% 100%**
Transportation Fringe Benefit Exclusion 2023 2022
Monthly commuter highway vehicle and transit pass $300 $280
Monthly qualified parking $300 $280
Standard Deduction 2023 2022
Married filing jointly $27,700 $25,900
Single (and married filing separately) $13,850 $12,950
Heads of Household $20,800 $19,400
Domestic Employees 2023 2022
Threshold when a domestic employer must withhold and pay FICA for babysitters, house cleaners, etc. $2,600 $2,400
Kiddie Tax
2023 2022
Amount used to reduce the net unearned income reported on a child’s return that’s subject to the Kiddie Tax $1,250 $1,150
Estate Tax 2023 2022
Federal estate tax exemption $12.92 million
$12.06 million
Maximum estate tax rate 40% 40%
Annual Gift Exclusion 2023 2022
Amount you can give each recipient $17,000 $16,000

* Only available for active-duty members of the military.
** Provided by restaurants. This is part of a law signed on December 27, 2020, which provided COVID-19 relief. The 100% deduction returned to 50% in 2023.


7 Payroll Fraud Schemes to Watch For

Payroll fraud is both an internal and external threat to companies. One of your employees, for example, could doctor time sheets to increase the number of hours worked — and thus inflate his or her paycheck. And a hacker halfway around the world could access your payroll records and steal personal information to commit identity theft. Both schemes attack the payroll function.
According to the Association of Certified Fraud Examiners, payroll fraud schemes cost a median loss of $65,300 per incident and usually last 30 months. Although some types of companies are more vulnerable to fraud, virtually every business that doesn’t protect its payroll records and processes incurs risk of financial losses. In addition to having strong internal controls, it helps to know common payroll schemes and take specific steps to address these threats. (more…)

Our Richmond Offices Are Moving


We are excited to announce that our two Richmond offices will be moving to a combined space at 4405 Cox Road, Suite 200, Glen Allen, VA  23060. The new office will be open for business beginning Monday, January 9, 2023.

Below are some FAQs to help during our transition to the new space.

When will the existing Richmond offices (5911 West Broad Street and 6806 Paragon Place) close? Both of the existing offices will be closed beginning on Thursday, December 22, 2022.

Will I be able to contact my KWC advisor and/or KWC staff during this time and the January 9 opening? Yes. Although the physical offices will be closed as we transition to our new space, you can still contact us by phone/fax/email as you have in the past.

When the new office space opens on Monday, January 9, 2023, what will the phone and fax numbers be? The new office will use the office phone/fax numbers below:
Phone:  804-855-1200
Fax:  804-288-4512

How do I drop off documentation to a KWC team member while the offices are closed (per the above dates)? Please call your accountant or 804-855-1200 to make arrangements for any deliveries, or wait until January 9th.

As always, we appreciate your business and being a part of the Richmond community. If you have any questions, please do not hesitate to contact us.