
Business Tax Articles
New York State Court Ruling on Internet Business Activity
Posted by Mark Stack on May 22, 2025
A New York court ruled that Public Law (P.L.) 86-272 does not protect non-solicitation internet activities from state taxation and cannot be applied retroactively to its 2015 proposal date. The court upheld New York's revised regulations but agreed that their retroactive application violated due process for businesses unaware of the new tax liabilities.
Utilizing Business Losses for Tax Benefits
Posted by Megan Morris-Smith on May 13, 2025
The federal tax code offers a strategy to mitigate business downturns by allowing certain losses to reduce taxable income in future years. The Net Operating Loss (NOL) deduction helps businesses average their income and losses over several years, ensuring fair tax payments. Recent changes under the Tax Cuts and Jobs Act (TCJA) have introduced new limits and rules for NOLs, including the elimination of carrybacks and a cap on the deduction at 80% of taxable income.
Business Owners: Is Your Salary IRS-Compliant?
Posted by Brian Kern on May 05, 2025
Owners of C corporations and S corporations must ensure their compensation is reasonable to avoid IRS scrutiny, which can lead to penalties, back taxes, and interest. By conducting market research, maintaining detailed job descriptions, and documenting annual reviews, owners can justify their pay levels and stay compliant with tax laws.
Maximizing Employee Benefits with Educational Assistance Plans
Posted by Angela Miles on April 28, 2025
Section 127 educational assistance plans allow businesses to provide up to $5,250 annually in tax-free educational benefits to employees. These plans cover a wide range of educational expenses, including graduate coursework, and can help attract and retain talented employees.
Maximize Your Tax Savings This Summer: Hire Your Child and Benefit
Posted by Emily Isaacson on April 14, 2025
Hiring your child for your small business during the summer can offer significant tax benefits. You can transfer business earnings to your child to save on income taxes, reduce Social Security tax if your business isn't incorporated, and provide retirement savings options for your child. Additionally, this opportunity helps your child understand your business, earn extra money, and learn responsibility.
Reporting Employment Taxes: Trust Fund Recovery Penalty (TFRP)
Posted by Alexander Intihar on April 07, 2025
Failing to comply with employment tax obligations can lead to severe consequences, including the Trust Fund Recovery Penalty (TFRP). This penalty imposes personal liability and financial hardship on business owners and responsible parties who willfully fail to collect, account for, and pay over employment taxes.
Tax and Administrative Legislation Impacting Manufacturers
Posted by Jonathan Roller on March 11, 2025
The Trump administration's policies could significantly impact U.S. manufacturers, particularly in the areas of tariffs and trade policies, the Tax Cuts and Jobs Act (TCJA), and clean energy tax incentives. Manufacturers need to stay informed about these rapidly changing policies to navigate their impact on business.
Evaluating Business Entities: Assessing the Suitability of an S Corporation
Posted by Jonathan Herdlein on March 10, 2025
The evaluation of an S Corporation for a new business venture highlights several advantages. Shareholders benefit from limited liability for corporate debts, and early losses can be deducted on personal tax returns. Additionally, the Qualified Business Income deduction offers potential tax benefits.
Managing the Business Interest Expense Deduction Limit
Posted by Michē Needham on March 03, 2025
The Tax Cuts and Jobs Act introduced Section 163(j), limiting business interest expense deductions. Businesses can manage this limit by opting out for certain industries, capitalizing interest expenses, or reducing overall interest expenses.
Determining Excess Business Losses
Posted by John Anderson on February 18, 2025
There are complexities to federal income tax rules for individual taxpayers facing substantial business losses. We explain the disallowance rule for excess business losses, the limitations on deducting net operating losses (NOLs), and how these rules apply to partnerships, LLCs, and S corporations.