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.
In the two years since the onset of the COVID-19 outbreak, lawmakers have overhauled the tax landscape due to the economic relief issued to individuals and businesses impacted by the pandemic. While the relief was much needed, it will potentially impact individual and business-related tax planning.
Business owners rely on their accountants to file taxes, provide them with reliable financial advice, and guide them on growing and operating their business. Working with the right accountant can make a significant difference in the economic well-being of your business. Unfortunately, many business owners assume that their accountant knows what they are doing because they earned the Certified Public Accountant (CPA) designation, but putting that knowledge into practice is another story.
With 2021 in the rearview mirror, there’s no better time to start thinking about the documents you’ll need to prepare your tax return. It can be a lot to keep track of, so we’ve provided a handy checklist of documents to keep an eye out for or to start collecting over the next couple of weeks, as the 2022 tax filing season officially kicks off on January 24th.
This post updates previously published content regarding legislation that would raise the threshold for nonprofit audits from $500,000 to $1M. Assembly Bill 4635 (AB4635) passed the New Jersey legislature on December 20, 2021, and now heads to Governor Murphy for further action.
On the twelfth day of Taxmas, my accountant gave to me a tip to contribute to an HSA if I have a high deductible health plan. A Health Savings Account (HSA) is a tax-advantaged savings account created for people who get insurance coverage through high-deductible health plans.
As Christmas approaches, Klatzkin is putting a twist on a holiday classic. But rather than filling your head with drummers drumming and golden rings, we’re focused on providing tips through “The Twelve Days of Taxmas” blog series that could help minimize your tax liability. On the eleventh day of Taxmas, Klatzkin gave to me the […]
