Tax
Audit Readiness: Essential Practices to Ensure Your Business is DCAA or IRS Audit-Ready
Summary of Keypoints Audit readiness is an ongoing discipline, not a one-time task, because both DCAA and IRS audits are inevitable for government contractors and require consistent documentation, internal controls, and compliance with FAR and tax regulations. Core audit documentation must be continuously maintained, including compliant timekeeping records, indirect rate support tied to the general…
Read MoreTax Implications of Government Contract Types: Choosing the Right Fit for Your Business
Summary of Keypoints Government contract type directly affects tax timing, reporting, and audit exposure, influencing when income is recognized, how expenses are deducted, and how closely your records are scrutinized by agencies like the IRS and DCAA. Fixed-price contracts offer revenue predictability but can accelerate taxable income, requiring careful use of percentage-of-completion revenue recognition and…
Read MoreHow Work From Home Might Affect This Year’s Tax Returns
Summary of Keypoints Work-from-home arrangements in 2020 created new tax complications because tax obligations are based on where employees physically perform their work, not where employers are headquartered, introducing uncertainty for both individuals and businesses. State tax nexus rules may trigger additional employer and employee tax obligations, as many states consider even one remote employee…
Read MoreCOVID-19 and Trade Associations: The Impact So Far
Summary of Keypoints COVID-19 has caused significant financial losses for trade associations, primarily due to cancellations of in-person conferences and events, which typically account for about 35% of annual association revenue. Membership dues revenue has also declined as member organizations reduce expenses, compounding the financial strain caused by event cancellations. Survey data from the American…
Read More2020 Year-end Charitable Giving Tax Incentives for Corporations
Summary of Keypoints The CARES Act temporarily expanded corporate charitable giving incentives for 2020, increasing the charitable deduction limit for C-corporations from 10% to 25% of taxable income and raising the limit for food inventory donations from 15% to 25%. Equity gifting remains a common year-end strategy for business owners, using the $15,000 annual gift…
Read More2020 Year-end Charitable Giving Tax Incentives for Individuals
Summary of Keypoints Individual charitable giving may yield greater tax benefits than corporate giving, since the top individual marginal tax rate (37%) exceeds the reduced corporate tax rate (21%) under the 2019 tax reform. The CARES Act introduced a new $300 above-the-line charitable deduction for 2020, allowing individuals who take the standard deduction to deduct…
Read MoreTop 7 reasons companies Outsource Accounting and Back-office functions
By Jennifer Eubanks 1. Competent financial management, reporting, and guidance. Businesses need to have competent financial management, reporting, and guidance so the management team can focus on operations. 2. Businesses need the right people. Some 70 percent of KPMG survey respondents said they are outsourcing accounting to get access to better talent. This helps clients focus on their business instead…
Read More4 Tax Provisions CARES Put Into Place You Should Pay Attention To
Summary of Keypoints CARES Act purpose: The CARES Act was enacted to support businesses affected by COVID-19, providing tax-related relief measures beyond stimulus checks and unemployment benefits to preserve jobs and improve cash flow. Net Operating Loss (NOL) changes: Businesses can carry back NOLs incurred between December 31, 2017 and January 1, 2021 to prior…
Read MoreSBA Issues New Interim Rule – Temporary Changes Impacting Self-Employed and Partnership Access to PPP Loans
Summary of Keypoints New SBA interim rule: The SBA issued temporary changes clarifying PPP loan eligibility and calculation methods for self-employed individuals, sole proprietors filing Schedule C, and partnerships. Self-employed with no employees: PPP loan amounts are based on 2019 Schedule C net profit (line 31), capped at $100,000, averaged monthly, multiplied by 2.5, with…
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