The Energy Efficient Home Credit was established by the Energy Policy Act of 2005 to allow eligible contractors to claim a $2,000 tax credit for each newly constructed or significantly reconstructed energy-efficient qualifying residence. The tax credit (Section 45L of the Internal Revenue Code) was set to expire at the end of 2020 but was extended by the Consolidated Appropriations Act of 2021 to include residences sold or leased on or before December 31, 2021. The credit can be retroactively taken up to three years.

It’s no secret the IRS is facing significant operational challenges attempting to work through the backlog of unprocessed returns, issuing refund payments, maintaining customer service, all while preparing for the 2021 tax season. And attempts to streamline existing workflows and standardize tax reporting have added another layer of complexity. For example, recently, changes were made to how pass-through entities (partnerships and S-corporations) report international tax-related items. Previously, this information was reported on IRS Form K-1, but recent changes mean these details are now to be reported in various places on Schedule K-2 or Schedule K-3.

Partner Emeritus Steve Klein spoke with Medical Economics about the importance of physicians engaging a team of outside advisors to help maintain a healthy bottom line.

Dealing with the IRS can be challenging for many businesses and individual taxpayers, and because of this most would prefer not to engage with the agency, whether it is a missing return, request for additional information, or an outstanding balance. Despite the aversion, resolving issues and concerns has traditionally been a process that unfolded according to certain timeframes.

On January 28, 2022, New Jersey Governor Phil Murphy signed bills S844 and S2533, raising the threshold for nonprofit audits from $500,000 to $1M, effective immediately. Therefore, New Jersey nonprofits whose gross receipts exceed $500,000, but do not exceed $1M, no longer need an audit.

Businesses have been on a roller coaster these past two years. In addition to managing the economic fallout from COVID-19, legislators passed dozens of tax laws and stimulus packages that required management to make important financial decisions on the fly. So, as we enter the 2022 tax filing season, let’s recap the various COVID-19 relief packages and how some of the provisions could impact the preparation and filing of your business taxes.

Small businesses are an essential part of New Jersey’s economy, providing needed products and services and creating important employment opportunities. The Garden State ranks 11th in the number of small businesses within its borders, totaling just under 908,000 enterprises. In fact, 99.6% of companies located within the state are small businesses, accounting for 49% of the overall employment. Those with 20 employees or less constitute the largest share of small business employment of these companies.