IRS examiners usually do their homework before meeting with taxpayers and their professional representatives. This includes reviewing any relevant Audit Techniques Guides (ATGs) that typically focus on a specific industry or audit-prone business transaction. (more…)

Remote work has become more common in recent years, and the COVID-19 pandemic has resulted in employers realizing that many jobs can be done from home. Some remote workers even work in a different state than where their employers are based. These employees may have opted to move to states with lower or no income taxes, but they — and other remote employees now working across state lines — may find themselves shouldering unexpected state income tax liabilities. (more…)

On Tuesday, the U.S. Small Business Administration (SBA) announced another extension on loan repayments for COVID-19 Economic Injury Disaster Loans (EIDL). This additional deferment allows small businesses and not-for-profits that received EIDL funds to defer on initial loan payments until 30 months after the date of the note. (more…)

Over the last year, home prices have soared in many parts of the country. In addition to benefitting from an appreciating asset, eligible homeowners enjoy several tax advantages. Here are eight reasons why it’s better to be an owner, rather than a renter, from a federal income tax perspective. (more…)

On Wednesday, Governor Youngkin signed into law tax conformity legislation so Virginians can begin appropriately planning for their 2021 tax year filings.

Most notable in the new law, taxpayers who received Paycheck Protection Program loans (PPP) and Economic Injury Disaster Loans (EIDL) in calendar year 2021 will be able to fully deduct the forgiveness on these loans. This only applies to PPP and EIDL loans received in 2021 and is not retroactive to 2020. The 2020 law limited the deductibility on these loans to $100,000, a fact that has remained unchanged.

The law also confirmed that $100,000 of the PPP loan proceeds and Rebuild Virginia grant proceeds would be deductible for entities with other fiscal year ends in 2020, such as June 30th or September 30th. As a result, any non-calendar year-end filers may be able to amend their 2019 returns for these deductions if not previously taken.

The new law advanced the conformity dates with the Internal Revenue Code through December 31, 2021 on things such as special depreciation allowances and carry-back of net operating losses. The law also ensures full conformity for the American Rescue Plan Act, including the Restaurant Revitalization Fund.

According to a statement from Governor Youngkin, this bill is expected to save Virginia individual and business taxpayers $201 million in taxes.

For additional information:

https://www.vscpa.com/news/fixed-date-tax-conformity-go-2022

https://lis.virginia.gov/cgi-bin/legp604.exe?221+ful+HB971ER

https://www.congress.gov/117/plaws/publ2/PLAW-117publ2.pdf

KWC is proud to announce that the firm was named as one of the 2022 Best Places to Work in Virginia. The firm is a repeat winner of the award, based on satisfaction surveys completed by our employees. The annual list of the Best Places to Work in Virginia was created by Virginia Business Magazine and Best Companies Group. (more…)

Good news: You just found out that your high school senior son or daughter will be receiving a sizeable scholarship at a prestigious university next fall. But what are the tax consequences? (more…)

Many companies are experiencing a buildup of accounts receivable on their balance sheets as customers — especially large corporate buyers — are stretching out their payment terms. While these bills may eventually be paid, delays are causing a cash flow crunch across many supply chains. (more…)

For empty nesters and other homeowners who don’t need a large house anymore, downsizing may seem like the perfect solution. From a practical standpoint, a smaller home generally takes less time to maintain, unless it’s much older than your current one. Plus, in today’s booming real estate market, you’ll likely come away with a financial windfall from the difference between what your current house might sell for and the price of a smaller one. (more…)

The holidays often inspire a spirit of generosity. So, at year end, many people decide to give money or assets to their loved ones. Over time, lifetime gifts can also be an effective way for wealthy people to minimize their taxable estates. Here are the basic federal tax rules for these transactions. (more…)