Act Now! Get Your Safe-Harbor Expensing in Place

Here are two tax words that you have to love: “safe harbor.” And here are five additional tax words to love: “tax-favored expensing with no recapture.” To create and protect your safe-harbor expensing, you make-or your corporation or partnership makes-a formal election on your tax return to use the de minimis safe harbor to expense …

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Mileage Logs – The Unpardonable Sin in a Tax Audit

Red-Flag Record for the Examiner Once your audit examination begins, the examiner likes to see this record. If the record is missing or lacking, the IRS examiner knows that your other records are also lacking. This record-the one you probably hate keeping-is the mileage log on your vehicle or vehicles. The IRS notes that a …

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Failed Mileage Log Negates Mileage Deductions

Know This Golden Rule Keep a mileage log. The Fraud Case In Flake, the IRS asserted income tax deficiencies of $16,240 and $58,094 and Section 6663 fraud penalties of$12,180 and $43,571.1 In this case, the court had to decide The Audit This tax case began when an IRS revenue officer audited the Flakes’ tax returns, …

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PPP Extended – Act Fast or Miss Out

This is likely it—your last chance to obtain first- and second-draw Paycheck Protection Program (PPP) monies. A new law, the PPP Extension Act of 2021, extends the expiration date to the later of May 31 or when the money runs out. Note the phrase “when the money runs out,” and be forewarned that this can …

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Treasury is Delivering Millions of Economic Impact Payments by Prepaid Debit Card

WASHINGTON – This week, Treasury and the IRS started to send approximately 8 million Economic Impact Payments (EIPs) by prepaid debit card. The distribution of EIP Cards follows the millions of payments already made by direct deposit and the ongoing mailing of paper checks and are part of Treasury’s and is IRS’s plan to deliver …

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