ERC Refunds and the Tax Benefit Rule
If you received an Employee Retention Credit (ERC) refund in 2026 for wages paid in 2020 or 2021, you may have an opportunity to recover the tax you pay on that refund. The IRS currently says that if you failed to reduce your wage deductions in the original years, you should report the receipt of […]
Understanding Inventory Accounting Methods for Small Businesses
Businesses that produce goods or purchase merchandise for resale have traditionally treated those items as inventory. Under the general tax rules, the business capitalizes inventory costs and deducts them only in the year the inventory is sold. The Tax Cuts and Jobs Act changed these rules for many small businesses. As a result, qualifying businesses […]
Optimize Year-End Vehicle Tax Deductions
Wow, how time flies! Yes, December 31 is just around the corner. That’s your last day to find tax deductions available from your existing business and personal (yes, personal) vehicles that you can use to cut your 2025 taxes. But don’t wait. Get on this now! Take Back Your Child’s or Spouse’s Car, and Sell It […]
Exploring Your Term Life Insurance Options Safely and Smartly
Are you considering cashing out your term life insurance policy? Unfortunately, selling a term life policy to investors is nearly impossible unless you are terminally ill and unlikely to outlive the policy. Exploring different term life insurance options might help you understand alternative solutions. You do have one potential option: you could name a relative […]
Major Tax Changes for Contractors and Businesses: The 1099 Form Update
Filing tax forms is never fun—but it’s important to stay ahead of changes that can reduce your reporting burden. Here are some major 1099 form updates from the One Big Beautiful Bill Act (OBBBA). If your business pays independent contractors (non-employees) for services, you are required to file IRS Form 1099-NEC if total payments exceed […]
Avoid Costly Tax Mistakes with Vacation Home Rentals
If you own a vacation home or rent out a second property, there’s a tax case you should know about—one that could save you thousands of dollars in lost deductions. The tax case shows the benefits of proactive tax planning when you own a vacation home or rent out a second property. Charles M. Akers […]
Maximizing Deductions for Business Conventions
You and your business likely benefit from attending business conventions and seminars. It’s essential to know which expenses you can deduct—and how to ensure they qualify. As a business owner, you might assume that if a seminar is “business related,” it’s automatically deductible. But that’s not always the case. The IRS sets specific requirements depending […]
How to Meet Your HRA PCORI Fee Filing Requirement and Avoid Penalties
Have you established a 105-HRA, a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA), or an Individual Coverage Health Reimbursement Arrangement (ICHRA) to reimburse your employees for medical expenses? If so, congratulations! These HRAs are an excellent way to cover your employees’ medical expenses and claim a tax deduction. But all three types of HRAs come […]
Avoid a Tax Headache: How to Fix a Mistaken 1099-NEC
Did you receive a Form 1099-NEC that overstates your income? You’re not alone—and it could mean you’re paying more taxes than you owe. This problem often arises at year-end. When a business issues a 1099-NEC based on what it paid rather than what you received. For example, if you were paid in January for the […]
How to Avoid Unwanted Partnership Tax Status
Suppose you’re involved in a real estate or investment venture with one or more other parties, perhaps co-owning property or collaborating on a business project. In that case, you might think you’re simply sharing ownership. But the IRS may see it differently. Without proper precautions, your arrangement could be classified as a partnership for federal […]