Business Tax Articles

The IRS in the past year has continued to ramp up its scrutiny of partnerships’ tax positions, including several pieces of new guidance taking a multiprong approach to partnership “basis shifting” transactions that the agency views as having the potential for abuse. At the same time, IRS is dedicating new funding and resources to examining partnerships. 

Operating as a C corporation offers benefits such as limited liability protection and the ability to raise capital through multiple classes of stock. However, it also comes with drawbacks like double taxation and the need to comply with various state-mandated formalities. Overall, it's important to weigh these pros and cons to determine if a C corporation is the right choice for your business.

Understanding how to deduct local transportation costs can significantly reduce your small business’s tax burden. While commuting costs aren’t deductible, travel expenses for business purposes, such as trips from your office to a client’s location, are deductible. Proper recordkeeping is essential to ensure these deductions are accurately claimed.

Corporations are responsible for a wide range of distinct tax regulations and challenges. It's important to consider key developments as corporations wrap up the 2024 tax year and move into 2025.

Health Savings Accounts (HSAs) offer small business owners a tax-advantaged way to manage health care costs for themselves and their employees. With updated contribution limits for 2025, HSAs provide significant tax benefits, including deductible contributions, tax-free earnings, and tax-free distributions for qualified medical expenses. Employers can also benefit from payroll tax savings on HSA contributions.

Business-related meal deductions can still offer valuable tax savings, but recent law changes have tightened what qualifies. Generally, meals are 50% deductible if they meet specific criteria, while certain exceptions allow for 100% deductions. Contact us to clarify the rules and optimize your deductions.

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.

As a business owner, understanding which travel expenses are tax-deductible can significantly impact your bottom line. This guide covers the essentials of deducting travel costs, from transportation and lodging to meals and tips, ensuring you stay compliant and maximize your tax savings. Proper recordkeeping and knowledge of your tax home are crucial for claiming these deductions.

Businesses offering employee health coverage may be required to comply with federal reporting obligations under the Affordable Care Act (ACA). Companies with 50 or more full-time employees must file Forms 1094-C and 1095-C to report health coverage details and determine compliance with employer mandate provisions. Employers with fewer than 50 full-time employees are generally exempt from these requirements.

As the fourth quarter of 2024 approaches, business owners must be aware of key tax deadlines, including filing returns, making estimated tax payments, and contributing to retirement plans. Missing these important dates can result in penalties or interest charges. This article highlights the most critical deadlines and filing requirements to help ensure businesses stay compliant.