Two Bonus Depreciation Deductions for One Expenditure

Under IRS regulations, businesses that trade in machinery or equipment for which they claimed bonus depreciation may qualify for another bonus depreciation deduction on the remaining depreciable basis if they swap for like-kind property that also is eligible for bonus depreciation. In effect, the business gets two bonus depreciation deductions...

FUTA Surtax is No Longer in Effect

Beginning July 1, 2011, the 0.2% federal unemployment tax (FUTA) surtax is no longer in effect. Thus, the FUTA tax rate, before consideration of state unemployment tax credits, is now 6.0%. Employers need to separately track FUTA taxable wages paid before July 1, 2011, and FUTA taxable wages paid after...

The IRS Notice Boom (Part 4)

It’s clear that the IRS has turned to technology to boost compliance. And with more than 200 million notices on the way again this year, practitioners can expect more clients to look to them for support. To provide value all year long, firms need to manage their clients’ post-filing activity....

The IRS Notice Boom (Part 2)

In a recent speech, IRS Commissioner Doug Shulman indicated that the IRS is also looking ahead, analyzing taxpayer compliance data to recognize trends and improve compliance practices. He explained that the agency created an office of compliance data analytics that helps create hypotheses for compliance improvement, launches pilots to test...

The IRS Notice Boom (Part 1)

Meet the new IRS. It’s the kinder, gentler IRS. It’s an agency with processes that are fast becoming structured, streamlined, and strangely quiet. Quiet, that is, except on paper. More Internal Revenue Service notices are going out to taxpayers than ever before. In fact, since 2001, notice volume has increased...

Year-End Business Planning Provides Tax Savings: Debt Instruments

You may be able to reduce your tax liability through smart debt management planning. Consider whether to defer cancellation of debt (COD) income from the reacquisition of an applicable debt instrument in 2010. The business can elect to have the cancelled COD income included in gross income ratably over five tax years beginning with the fourth tax year following the tax year in which the repurchase occurs (i.e., beginning with 2014). Contact our office for more information.