Congress has passed the Inflation Reduction Act (IRA) and President Biden signed it into law on August 16.

The $740 billion law contains many tax breaks and raises revenue through a new minimum tax on large, profitable corporations and an excise tax on stock buybacks. It’s intended to reduce the U.S. deficit by about $300 billion. Other revenue would come from stricter enforcement of tax compliance by the IRS. (more…)

KWC Certified Public Accountants (KWC) today announced its expansion in Richmond, Virginia through a merger with Kimble CPAs.

“We are excited to expand in the Richmond market,” said Connie Hammell, Managing Principal at KWC. “Adding the Kimble team strengthens our existing Richmond presence and provides additional opportunities to serve our mutual clients in this market.”

Kimble CPA has extensive experience in service to closely held interests, not-for-profit entities, and individuals. The firm serves clients located in Virginia, their home base, as well as in California, Florida, Maryland, Texas, West Virginia, and Wyoming. In addition to basic audit, tax and accounting engagements, Kimble has provided counsel on important financial decisions, key employment choices, trust and estate planning, business expansions, and international matters.

“As a StrengthsFinder firm, Kimble has always sought to leverage the talents that each of our partners, managers and staff bring to the table,” said Kimberley VanHuss, Kimble CPA Co-Founder and Tax Partner. “Through this merger with KWC, we are enhancing our commitment to bring the right people to the right project to provide the best results and client experience. I am thrilled for this new venture, which is a win for both our teams and the individuals and businesses we serve.”

Kimble CPA was advised on the transaction by Sterling Point Advisors, an M&A advisory firm based in Richmond, Virginia. “This combination has everything you look for in a great partnership – from alignment of culture to complementary capabilities and services,” added Luke Campbell, Managing Director at Sterling Point. “It has truly been a privilege to help Kimble start this exciting new chapter. They could not have found a better partner.”

Whiteford, Taylor & Preston provided legal counsel to Kimble, and Rees Broome provided legal counsel to KWC.

When unused flexible spending account (FSA) balances are forfeited back to employers under the “use-it-or-lose-it” rule, employers have several options for what they can do with the money. Here is what employers need to know after first covering some necessary background information. (more…)

Here’s a little-known secret for parents planning to send their children to college in the future: Some of the tax-saving moves you make now could hurt your student’s chances for getting financial aid later. (more…)

Are you new to self-employment? Working for yourself doesn’t mean you must forego tax-advantaged retirement savings. In addition to contributing to a traditional IRA, there are two basic retirement plan options that may make sense for self-employed individuals: Simplified Employee Pensions (SEPs) and SIMPLE IRAs. Here are the pros and cons of these plans. (more…)

Many people are uncomfortable discussing with their loved ones how they plan to distribute their estates. Perhaps you don’t want your children to realize how much they may receive after your death. Or maybe you think your choice of heirs could change in the future. (more…)

The COVID pandemic prompted numerous temporary changes to the tax laws for 2020 and 2021. From Economic Impact Payments, penalty-free IRA distributions and the expanded child tax credit to Employee Retention Credits and credits for paid
leave, taxpayers had ample areas to make mistakes when completing their tax returns — on top of the usual annual tripwires. Here’s what you need to know if you’re considering amending your 2020 or 2021 federal income tax return. (more…)

The IRS recently announced it will be increasing the standard mileage rate for qualified business drivers for the second half of 2022. The adjustment reflects rising costs at the gas pumps this year. It’s accompanied by a hike in the standard mileage rate for medical expenses for all taxpayers and moving expenses for active-duty military personnel (IRS Announcement 2022-13). (more…)

We are pleased to announce the promotions of Emily Crimmins and Samantha Doe to Principal with the firm.

“Both Emily and Samantha bring extensive tax expertise, as well as top-quality commitment to our clients’ success,” said Connie Hammell, Managing Principal of KWC. “These traits make them ideal candidates to help guide the firm as we continue to grow.”

Emily Crimmins is a Principal in KWC’s Business Services Group. She provides consulting, tax planning, and compliance services for closely held businesses and their ownership groups. Emily has experience in many industries including marketing and advertising, government contractors, professional services, and real estate.

Additionally, Emily is a participant in an emerging leaders program consisting of future leaders from regional firms across the Southeast.

Emily is a graduate of James Madison University. Outside of KWC, Emily enjoys traveling with her friends and family, attending concerts, reading novels, and cheering on her favorite sports teams (the Virginia Tech Hokies and the New England Patriots).

Samantha Doe is a Principal in the firm’s Business Services Group. She provides consulting, tax planning, and compliance services for closely held businesses and their ownership groups. Samantha has experience in many industries including professional services, real estate, and specialty trade contractors.

Samantha is a graduate of George Mason University. Outside of KWC, Samantha enjoys spending time with her family. She also likes to travel to tropical places and lists visiting beautiful beaches as one of her favorite things to do. When she is not traveling, she enjoys exploring local cities in the area.

Are you interested in setting up a private foundation?

With this approach, you make contributions to a foundation and get a charitable tax deduction just as you would with any qualified organization. Then, as the director, you decide which charities you want to make distributions to so you retain control of the assets. (more…)