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Be alert of rising fraudulent activities and know how you can protect yourself and others from becoming a victim. The most recent fraudulent activity spike is known as check washing, which has risen across the U.S, with losses ranging from a few hundred to tens of thousands of dollars. What is Check Washing? Check washing is a type of fraud where criminals use chemicals to remove ink from a written check and replace it with new information, altering the payee and dollar amount. The alteration is typically made by using chemicals or solvents to erase the ink on the

Is your business remitting the proper amount of sales and use taxes to the appropriate state and local jurisdictions? Many business leaders and even some tax departments may be surprised to learn, on average, organizations pay more in sales and use taxes and other state and local non-income-based taxes than they pay in state and local income taxes. In addition, the Tax Foundation noted in a 2020 report sales taxes account for about one-third of state tax revenue. A comprehensive review of your organization’s sales and use tax practices, along with improving and automating the necessary processes, may ultimately

Section 4960 of the Internal Revenue Code imposes a 21% excise tax on remuneration in excess of $1 million, as well as excess “parachute payments” paid by applicable tax-exempt organizations (ATEOs) or their related entities to any “covered employee.” Tax-exempt employers who compensate their executives over $1 million per year or who pay separation-related compensation should monitor the amounts and timing of such remuneration. With advance planning, ATEOs may be able to better manage any excise tax they might owe. Additionally, final regulations under Section 4960 issued in early 2021 may provide opportunities for ATEO groups to claim refunds

Businesses operating across state lines must determine the amount of their income subject to tax in each state. Generally, this is done using what is known as “formulary apportionment.” Given states regulate the apportionment methods they allow and are not required to use a uniform approach, the varying methods—especially the different ways states source and weight a taxpayer’s sales activities—may result in excessive taxation overall. Multistate businesses should review the apportionment options and rules in the states and localities where they are taxable for potential opportunities to reduce their tax bill and to ensure they are reporting and paying

On August 23, 2022, the IRS announced it will grant automatic penalty relief for late-file penalties imposed with respect to certain returns required to be filed for the 2019 and 2020 tax years. Notice 2022-36 provides systemic penalty relief to taxpayers for certain civil penalties related to 2019 and 2020 returns. Penalty relief is automatic, so eligible taxpayers need not apply for it. If penalties have already been paid, the taxpayer will receive a credit or refund. The IRS has not yet announced if or when it will notify eligible taxpayers that it has waived their preexisting penalties pursuant

The Inflation Reduction Act (IRA) includes a wide range of tax incentives aimed at combating the dire effects of climate change. One of the provisions receiving considerable attention from consumers is the expansion of the Qualified Plug-in Electric Drive Motor Vehicle Credit (IRC Section 30D), now known as the Clean Vehicle Credit. While the expanded credit seems promising, questions have arisen about just how immediate its impact will be. Here’s what you need to know about the credit if you’re thinking about purchasing an electric vehicle (EV). The credit in a nutshell The Qualified Plug-in Electric Drive Motor Vehicle Credit has been