The Virginia General Assembly recently passed bills that give qualifying pass-through entities (PTE) the ability to pay state entity-level taxes; i.e. the workaround for the State and Local Tax (SALT) cap. The federal Tax Cuts and Jobs Act of 2017 (TCJA) imposed a $10,000 limit on the amount of non-business State and Local Taxes (SALT) […]
Leases – Change Is Here (And There’s Not Much We Can Do About It)
Yes, the rumors are true. After years of talking about the impending changes related to Accounting Standards Update 2016-02 – Leases (Topic 842), private companies now have no choice but to look the standard square in the eyes and address. So, what does that actually mean? First, let’s set the table a bit. This change […]
Flow-Through Entities—Schedule K-2 and K-3 Reporting Requirements
As a result of the Tax Cuts and Jobs Act of 2017 (TCJA), the IRS introduced two new schedules (Schedules K-2 and K-3) that may need to be completed for partnerships and S Corporations for the 2021 tax year. The purpose of the schedules are to report items of international tax relevance when calculating a […]
Tax-Efficient Education Savings
We often are asked for tax-efficient ways to help with our children’s (or grandchildren’s) education expenses. One of the easiest ways to help your children or grandchildren with savings for education expenses is to invest the money you have set aside for your child’s or grandchild’s college years into tax-smart investment vehicles. These plans and accounts […]
Virginia Tax Conformity
Gov. Glenn Youngkin signed a tax bill on Feb. 23, 2022 that brings Virgina’s tax laws into conformity with changes to the Internal Revenue Code (IRC) from Dec. 31, 2020, to Dec. 31, 2021. The legislation includes full conformity to the American Rescue Plan Act, including the Restaurant Revitalization Fund, and allows full deductibility of […]
IRS Allows Individuals to Setup Online Accounts
The IRS allows individual taxpayers to set up and use an Online Account to securely see important information when preparing to file their tax return or following up on balances or notices. Taxpayers can view the amount they owe, make and track payments and view payment plan details. Taxpayers can now also manage their communication […]
Advanced Child Tax Credit – is your IRS Letter 6419 reporting accurate totals?
We shared recently to be on the lookout in your mailbox for Letter 6419 from the IRS. This letter reports the amount of advanced child tax credit (ACTC) you received in 2021. It is imperative that your 2021 tax return report valid information for the ACTC to avoid IRS processing delays. The IRS has indicated that […]
2022 Standard Mileage Rates
Beginning 1/1/22, the standard mileage rates for cars, vans, pickups, and panel trucks will be 58.5 cents per mile for business purposes, 18 cents per mile for medical or moving purposes, and 14 cents per mile for charitable purposes. However, the rates cannot be used to claim an itemized deduction for unreimbursed employee travel expenses […]
Are You Ready for Tax Season?
Fourth Quarter Estimated Payments Due January 18th If you are required to make estimated payments for 2021, the fourth quarter payment is due on January 18th. Due to continued processing delays at the IRS, we recommend that federal payments be made online at https://www.irs.gov/payments or via EFTPS. Virginia payments can be paid online at https://www.tax.virginia.gov/individual-income-tax-payment-options. If you choose […]
