Articles From Lumsden McCormick

This guide identifies tax strategies and considers how they may be influenced by recent administrative guidance and potential legislative changes that remain under consideration. A taxpayer’s tax accounting methods determine when income is recognized, and costs are deducted for income tax purposes.

To secure grants from foundations, align your nonprofit’s mission with the foundation’s interests and thoroughly research their focus areas. Successful proposals are well-defined, data-driven, and outline a clear plan for project completion. Persistence is key, as feedback from rejected proposals can help strengthen future applications.

A business continuity plan is essential for manufacturing companies to minimize disruptions and ensure rapid recovery during crises such as natural disasters, supply chain disruptions, or IT failures. Key steps include forming an interdisciplinary team, assessing risks, developing contingency strategies, and regularly testing and updating the plan. Proactive planning can safeguard operations and enhance resilience in the face of unexpected events.

Self-employment tax combines Social Security and Medicare taxes, with a 15.3% rate applied to the first $168,600 of net income in 2024. Future inflation adjustments will likely increase the tax burden, making strategies like restructuring as an S corporation a potential way to reduce costs. Understanding SE tax calculations and exploring tax-saving options can help self-employed individuals manage their financial obligations effectively.

The Corporate Transparency Act created new reporting requirements with the Financial Crimes Enforcement Network (FinCEN) related to Beneficial Owners of LLCs, Corporations, or other similar entities formed under state law.  These requirements have not been well communicated by the authorities, so we are reaching out to ensure you are aware of the changes.  

The IRS has released the annual inflation adjustments for the 2025 tax year, which will affect taxpayers when they file their returns in 2026 including notable changes.

Proper documentation is essential for deducting charitable donations on your taxes. Cash donations require bank records or written communication from the charity, while noncash donations have additional requirements based on the donation amount, including receipts, written acknowledgments, and qualified appraisals for larger donations. Ensuring compliance with these rules helps secure your deductions and avoid issues with the IRS.

Learn how to maintain strong internal controls to prevent fraud during peak seasons. Key measures include segregating accounting duties, supervising cash handling, and being vigilant about gift card security to protect your nonprofit’s revenues and holiday spirit.

Lumsden McCormick presents a highlight summary of the significant cost-of-living adjustments (COLA) effective for 2025.

Spousal property rights, including the "elective share," are governed by state law and can significantly impact estate plans. Strategies such as transferring assets to a revocable trust may help mitigate the effect of these rights, but laws vary by state, making professional guidance essential for effective planning.