By Fernando Jimenez For the second consecutive year, the IRS has postponed implementation of a new rule that would have led to an estimated 44 million taxpayers receiving tax forms
5 Strategies to Cut Your Company’s 2023 Tax Bill
As another year ends with interest rates and markets in flux, one thing remains certain: Reducing your company’s tax bill can improve your cash flow and your bottom line. Below
The 2024 Cost-of-Living Adjustment Numbers Have Been Released: How Do They Affect Your Year-End Tax Planning?
The IRS recently issued its 2024 cost-of-living adjustments for more than 60 tax provisions. With inflation moderating slightly this year over last, many amounts will increase over 2023 amounts but
Take Action Now to Reduce Your 2023 Income Tax Bill
A number of factors are making 2023 a confounding tax planning year for many people. They include turbulent markets, stabilizing but still high interest rates and significant changes to the
IRS offers a withdrawal option to businesses that claimed ERTCs
by Fernando Jimenez Recent IRS warnings and announcements regarding the Employee Retention Tax Credit (ERTC) have raised some businesses’ concerns about the validity of their claims for this valuable, but
Good News if you Missed the 10/16/23 Tax Deadline
State & Federal Tax Deadline Extended to 11/16/23 for Most CA Taxpayers By Fernando Jimenez The California Franchise Tax Board and the Internal Revenue Service have extended the tax deadline
Corporate Transparency Act Requires Additional Ownership Reporting for Most Small to Mid-Size Businesses
By Fernando Jimenez Starting January 1, 2024, virtually all legal business entities in the United States will be subject to the Corporate Transparency Act (CTA). With an estimated nearly 33
Navigating State Tax Implications in the Remote Work Era – Part 2
How Remote Work Triggers Nexus The rise of remote work has transformed how businesses operate, providing flexibility and convenience for both employers and employees. However, along with its benefits, remote
IRS Freezes New Employee Retention Credit (ERC) Claims: What You Need to Know
By Fernando Jimenez The IRS announced on September 14th that it has put a hold on processing all new Employee Retention Credit (ERC) claims through the end of 2023. The
IRS Issues Guidance on New Retirement Catch-Up Contribution Rules
By Fernando Jimenez In December 2022, President Biden signed the Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act. Among other things, the sweeping new law made some significant
Navigating State Tax Implications in the Remote Work Era – Part 1
By Alex Sneed The rise of remote work has transformed the traditional office landscape, enabling individuals to work from anywhere in the world. While flexibility has advantages, it also brings
Assemblymember Alex Lee’s Wealth Tax – Is It Time to Leave California?
For the third year in a row, Assemblymember Alex Lee (D-San Jose) has introduced a wealth tax, AB 259, along with a proposed constitutional amendment, ACA 3, which would tax
The IRS Warns Businesses About ERTC Scams
By Fernando Jimenez The airwaves and internet are inundated these days with advertisements claiming that businesses are missing out on the lucrative Employee Retention Tax Credit (ERTC). While some employers
Cracking the Code: How Quality of Earnings Influence Decision-Making
By Gordon MacLean and Ian Lawson A Quality of Earnings (QofE) report plays a crucial role in assessing the financial health and reliability of a company’s earnings. It provides
IRS Provides Transitional Relief for RMDs and Inherited IRAs
By Fernando Jimenez Three years later, in December 2022, the SECURE 2.0 Act increased the RBD age for RMDs further. This year the age increased to 73, and it’s scheduled to
Social Security’s Future: The Problem and the Proposals
By Fernando Jimenez Recent reports have raised anew concerns about the impending insolvency of the Social Security program, absent congressional action. Social Security reform has long been considered a “third
IRS Guidance Coming Regarding the IRA’s Clean Vehicle Credit
By Fernando Jimenez The Inflation Reduction Act (IRA) extended and expanded the Section 30D Clean Vehicle (CV) Credit, previously known as the Electric Vehicle (EV) Credit. The credit now covers “clean
President Biden’s Proposed Budget Includes Notable Tax Provisions
By Manny Ramirez and Fernando Jimenez President Biden has released his proposed budget for the federal government for the 2024 fiscal year. The budget, which aims to cut the deficit by
U.S. Supreme Court Limits IRS Penalties for Not Reporting Foreign Accounts
By Manny Ramirez Last week, the U.S. Supreme Court limited the ability of the IRS to impose penalties on those who do not report foreign accounts. The Case & the
Californians Impacted by Winter Storms Receive Extension to File Taxes
By Fernando Jimenez The state of California is conforming with the IRS and extending the tax filing deadline for Californians affected by December and January winter storms. The extended deadline
Reading the Tea Leaves: Potential Tax Legislation in the New Congress
By Fernando Jimenez The 2022 mid-term election has shifted the scales in Washington, D.C., with the Democrats no longer controlling both houses of Congress. While it remains to be seen
Section 174 and Capitalization of R&D Costs
By Martin Gamez and Fernando Jimenez One delayed tax impact of the 2017 Tax Cuts and Jobs Act (TCJA) went into effect as of January 1, 2022. Taxpayers may no
IRS Extends 2022 Tax Filing for Californians Affected by Recent Storms
By Nicole Hagaman California residents and businesses in certain counties have been given an extension until May 15, 2023 to file their federal income tax returns for 2022. The extension
117th Congress Rushes to Pass a $1.7 Trillion Omnibus Spending Package before it ends January 3, 2023: What’s Included?
By Manny Ramirez and Fernando Jimenez Just before funding for the federal government was set to expire on December 23, 2022, Congress passed—and President Biden is poised to sign—the Consolidated
Act Now to Reduce Your Business’s 2022 Tax Bill
By Fernanco Jimenez It’s been a tumultuous year for many businesses, and the current economic climate promises more uncertainty for the short term, if not longer. Regardless of how your
PTE Payments Made by Dec. 31 Trigger Federal Deduction
By Fernando Jimenez California passthrough entities (PTEs) that made the initial June 15 passthrough entity elective tax payment can take advantage of increased federal tax savings by paying the remainder
What do the 2023 Cost-of-Living Adjustment Numbers Mean for You?
The IRS recently issued its 2023 cost-of-living adjustments for more than 60 tax provisions. With inflation up significantly this year, many amounts increased considerably over 2022 amounts. As you implement
Inflation Reduction Act Expands Deductions for Energy-Efficient Construction
Mitigating the adverse effects of climate change is one of the primary targets of the recently enacted Inflation Reduction Act (IRA). To that end, the legislation is packed with tax
Inflation Reduction Act Expands Valuable R&D Payroll Tax Credit
When President Biden signed the Inflation Reduction Act (IRA) into law in August, most of the headlines covered the law’s climate change and health care provisions. But the law also
Clean Vehicle Credit Comes with Caveats
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
FTB Admits Errors on PTE Payments
RJI CPAs has recently learned that due to errors with the Franchise Tax Board (FTB) processing of passthrough entity tax payment vouchers, the FTB is erroneously issuing refunds of the
IRS Offers Penalty Relief for 2019, 2020 Tax Years
While the recently announced student loan debt relief has captured numerous headlines, it’s estimated that another federal relief program announced on the same day will provide more than $1.2 billion in
Student Loan Relief Announced by President Biden
On August 24, President Biden announced a three-part plan addressing student loan debt. The three parts encompass the following: The Administration has already extended the student loan repayment pause several
Inflation Reduction Act of 2022 aka The IRS $80 Billion Funding Act
The Inflation Reduction Act (IRA) was signed by President Biden on August 12, 2022, purportedly to help reduce the country’s crippling inflation. Using the Tax Foundation’s General Equilibrium Model, they
CHIPS Act Poised to Boost U.S. Businesses
CHIPS Act poised to boost U.S. businesses The Creating Helpful Incentives to Produce Semiconductors for America Act (CHIPS Act) was recently passed by Congress as part of the CHIPS and
Businesses: Act Now to Make the Most Out of Bonus Depreciation
The Tax Cuts and Jobs Act (TCJA) significantly boosted the potential value of bonus depreciation for taxpayers — but only for a limited duration. The amount of first-year depreciation available
Standard Business Mileage Rate will Increase for the Second Half of 2022
The IRS recently announced that it’ll increase the standard mileage rate for qualified business driving for the second half of 2022. The adjustment reflects the soaring cost of gasoline this
Proposed Regs for Inherited IRAs Bring Unwelcome Surprises
Back in late 2019, the first significant legislation addressing retirement savings since 2006 became law. The Setting Every Community Up for Retirement Enhancement (SECURE) Act has resulted in many changes
Congress Eyes Further Retirement Savings Enhancements
In 2019, the bipartisan Setting Every Community Up for Retirement Enhancement Act (SECURE Act) — the first significant legislation related to retirement savings since 2006 — became law. Now Congress
New State Laws Affect Businesses for the Good and the Bad
A bill Governor Gavin Newsom signed into law in February has positive tax implications for businesses, while a second bill requires certain companies to provide workers with COVID-19 sick leave
The IRS Again Eases Schedules K-2 and K-3 Filing Requirements for 2021
The IRS has announced additional relief for pass-through entities required to file two new tax forms — Schedules K-2 and K-3 — for the 2021 tax year. Certain domestic partnerships
Why a Cost Segregation Study is a Good Idea
Accelerate Depreciation Deductions to Reduce Taxes and Boost Cash Flow The COVID-19 pandemic has resulted in many companies conserving cash and not buying much equipment during the past year. An
2022 Tax Calendar
To help you make sure you don’t miss any important 2022 deadlines, we’ve provided this summary of when various tax-related forms, payments and other actions are due. Please review the
U.S. House Passes the Build Back Better Act
The U.S. House of Representatives passed a crucial part of President Biden’s agenda by a vote of 220-213 on November 19. The Build Back Better Act (BBBA) includes numerous provisions
Don’t Forget to Factor 2022 Cost-of-living Adjustments Into Your Year-end Tax Planning
The IRS recently issued its 2022 cost-of-living adjustments for more than 60 tax provisions. With inflation up significantly this year, mainly due to the COVID-19 pandemic, many amounts increased considerably
Potential Tax Law Changes Hang Over Year-end Tax Planning for Individuals
As if another year of the COVID-19 pandemic wasn’t enough to produce an unusual landscape for year-end tax planning, Congress continues to negotiate the budget reconciliation bill. The proposed Build
The Infrastructure Investment and Jobs Act includes Tax-related Provisions You’ll Want to Know About
Almost three months after it passed the U.S. Senate, the U.S. House of Representatives has passed the Infrastructure Investment and Jobs Act (IIJA), better known as the bipartisan infrastructure bill.
Businesses Must Navigate Year-end Tax Planning with New Tax Laws Potentially on the Horizon
The end of the tax year is fast approaching for many businesses, but their ability to engage in traditional year-end planning may be hampered by the specter of looming tax
State Taxes Impact Business Sales, Too
For a business owner to successfully negotiate the sale of a business, it is critical to understand the tax implications. Armed with this knowledge, you can assess the impact of
Worker Classification is Still Important
Over the last year, many companies have experienced “workforce fluctuations.” If your business has engaged independent contractors to address staffing needs, be careful that these workers are properly classified for
New CA SALT Cap Workaround Saves Federal Taxes
What is the CA Salt Cap Workaround? California has joined the growing list of states that have enacted a SALT cap workaround. California Governor Gavin Newsom recently signed Assembly Bill
Consider Taxes Before Moving Out of State
With so many people working remotely these days, it has become common to think about moving to another state — perhaps for better weather, to be closer to family or
Will Changes to CA’s PPP Loan Bill Affect Your Business?
2020 California PPP Law Explained California enacted a law in late 2020 allowing businesses to exclude PPP loan amounts under the federal CARES Act for state tax purposes, but denying
$1.9 Trillion American Rescue Plan Act
On March 11, 2021, President Biden signed the American Rescue Plan Act of 2021 (ARPA). This $1.9 trillion stimulus package contains extensions to unemployment, stimulus payments and provisions for small
New Law Extends Opportunity for Businesses to Claim Employee Retention Credit
The Consolidated Appropriations Act of 2021, signed into law in December 2020, modified some of the CARES Act provisions, including expanding Employee Retention Tax Credit (ERTC) eligibility and extending the
PPP Loan Applications Re-Open
Key Changes and Upcoming Deadlines The U.S. Small Business Association and Treasury re-opened the Paycheck Protection Program (PPP) on January 11, 2021. Initially, only community financial institutions that serve minority-
COVID-19 Relief Bill Signed into Law
President Trump signed off on a $900 billion COVID relief bill on December 27, 2020, offering economic aid as the pandemic worsens. His approval came just in time to avert
Potential Impacts of the Election on Tax Reform
The recent presidential and upcoming Senatorial special elections may have a significant impact on tax law next year (2021) and therefore the need for 2020 year-end tax planning is extraordinarily
Reserve Your Small Business Hiring Credit Now
Businesses with 100 employees or less are eligible for California’s new Small Business Hiring Credit, equal to $1,000 per net increase in qualified employees. Businesses that have been negatively impacted
Should You File a Protective Refund Claim for ACA-Related Payments?
The U.S. Supreme Court has agreed to hear arguments on whether the Affordable Care Act (ACA) is unconstitutional. It is expected that the Supreme Court will not make a decision
PPP Loan Audits: What You Need to Know
Many small business owners received forgivable loans as part of the CARES Act Paycheck Protection Program (PPP). If you received a PPP loan, you may be audited by the SBA
Tax Alert – Proposition 15 Raises Property Taxes!
Amid an unprecedented economic crisis, special interests are pushing Prop 15 on the November 2020 statewide ballot to begin the process of eroding Propositions 13’s property tax protections. This is
Tax Alert: Payroll Tax Deferral Began Sept 1
The U.S. Department of Treasury and Internal Revenue Service (IRS) issued official guidance for taxpayers on the “payroll tax holiday” ordered by President Donald Trump in early August as part
Payroll Tax Deferral Starts Today – Employer Can Elect In or Out
On August 28, 2020, the Department of Treasury and Internal Revenue Service (IRS) issued official guidance for taxpayers on the payroll tax deferral ordered by President Donald Trump on August
You Have Received Your PPP Loan, Now What?
More than 4 million small businesses have applied for and received their Paycheck Protection Program (PPP) loan. The next logical question is: How do you account for it? There has
What does the Executive Action Deferring Payroll Taxes Mean for Employers and Employees?
On August 8, 2020, President Trump signed an executive memorandum that defers an employee’s portion of Social Security and Medicare taxes from September 1 through December 31, 2020. At this
Retroactive California Tax Hike Proposed by Legislature
Democrats in the California state legislature have proposed a significant tax hike on taxable income of $1 million and higher. Legislators say the tax hike would raise more than $6
PPP Loan Extension Gives Small Businesses 5 More Weeks
President Trump signed a bill into law on July 4, 2020 that extends the Paycheck Protection Program (PPP) deadline for five more weeks until August 8. The original deadline to
PPP Loan Flexibility & Maximizing Forgiveness
The Paycheck Protection Program Flexibility Act recently became law to provide additional flexibility on the use of Paycheck Protection Program (PPP) funds and make it easier for businesses to qualify
IRS Guidance Provides RMD Rollover Relief
The CARES Act was enacted in an attempt to mitigate the economic effects of the COVID-19 pandemic. Among other things, it extends favorable tax treatment to qualified individuals who take
New Law Improves PPP Loan Flexibility & Forgiveness
The recently approved Paycheck Protection Program Flexibility Act (PPPFA) provides businesses with much-needed flexibility regarding the use of Paycheck Protection Program (PPP) funds and eases the requirements for full loan
IRS Denies Deductions for Expenses Paid by PPP Loans
The IRS has recently confirmed that they will not allow taxpayers to claim tax deductions for expenses that were paid by PPP loans that were forgiven, even for recurring expenses
Good News for Small Businesses as Senate Passes PPP Reform Bill
The U.S. Senate passed the House version of the Paycheck Protection Program Flexibility Act on June 3, 2020, easing restrictions on how small businesses can use their PPP loan funds
SBA Clarifies Good Faith Certification for PPP Loans
On April 23, the Small Business Administration (SBA) issued a warning that businesses with substantial access to liquidity may not qualify for Paycheck Protection Program (PPP) loans. Concerned that their
House Proposes More Flexibility for PPP Program. Will Senate Follow?
The U.S. House of Representatives passed a bill on May 28, 2020 that would make it easier for businesses to have their Paycheck Protection Program (PPP) loans forgiven by reducing
Missed or Denied a PPP Loan? Good News, Here Are Some Alternatives
The Paycheck Protection Program (PPP) loan is anticipated to quickly run through its second round of $310 billion in funding due to high demand, which will leave many small business
New Funds Now Available for PPP and EIDL Loans
On April 24 the Paycheck Protection Program (PPP) Increase Act of 2020 was signed into law. The Act is an interim stimulus plan designed to provide relief to small businesses
How to Achieve Maximum PPP Loan Forgiveness
If you received a Paycheck Protection Program (PPP) loan, you have probably already started thinking about the next step – determining how much of the loan will be forgiven. Qualifying
New COVID-19 law makes favorable changes to “qualified improvement property”
The law providing relief due to the coronavirus (COVID-19) pandemic contains a beneficial change in the tax rules for many improvements to interior parts of nonresidential buildings. This is referred
The IRS announces new COVID-19-related assistance for taxpayers
The IRS and the U.S. Department of Treasury have announced new relief for federal taxpayers affected by the coronavirus (COVID-19) pandemic. The IRS had already extended certain deadlines to file
Answers to questions about the CARES Act employee retention tax credit
The recently enacted Coronavirus Aid, Relief, and Economic Security (CARES) Act provides a refundable payroll tax credit for 50% of wages paid by eligible employers to certain employees during the
Paycheck Protection Program Analysis Tool
RJI CPAs has developed a tool to simplify the application process when applying for a Paycheck Protection Program loan. The tool includes the total amount for which you qualify and
The CARES Act and What it Means to You
The $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on Friday, March 27, 2020. The Act aims to provide economic relief through a multitude
SBA Offers Low-Interest Loans to CA Businesses Impacted by COVID-19
The U.S. Small Business Administration announced on March 16th that they are offering low-interest federal disaster loans for working capital to California small businesses suffering substantial economic injury as a
Coronavirus (COVID-19): Tax relief for small businesses
Businesses across the country are being affected by the coronavirus (COVID-19). Fortunately, Congress recently passed a law that provides at least some relief. In a separate development, the IRS has
What you need to know about the Families First Coronavirus Response Act
President Trump has signed into law the Families First Coronavirus Response Act. Among other things, the new law temporarily requires certain employers to provide expanded paid sick and family leave
BREAKING: U.S. Treasury Secretary now says tax filing deadline is moved to July 15
U.S. Treasury Department Secretary Steven Mnuchin announced that the 2019 income tax filing deadline will be moved to July 15, 2020 from April 15, 2020, because of the coronavirus (COVID-19)
The IRS extends the federal income tax payment deadline
After U.S. Treasury Secretary Steven Mnuchin’s announcement that the deadline for paying federal income taxes would be extended, the IRS released guidance on March 18 outlining the details. IRS Notice
The IRS provides guidance on meal and entertainment deductions
The IRS has released proposed regulations addressing the deductibility of meal and entertainment expenses in tax years beginning after December 31, 2017. Among other things, the proposed regs clear up
How business owners may be able to reduce tax by using an S corporation
Do you conduct your business as a sole proprietorship or as a wholly owned limited liability company (LLC)? If so, you’re subject to both income tax and self-employment tax. There
The SECURE Act likely to affect your retirement and estate plans
In late 2019, the first substantial legislation related to retirement savings since 2006 became law. The Setting Every Community Up for Retirement Enhancement (SECURE) Act brings numerous changes to the
Numerous tax limits affecting businesses have increased for 2020
An array of tax-related limits that affect businesses are annually indexed for inflation, and many have increased for 2020. Here are some that may be important to you and your
The SECURE Act changes the rules for employers on retirement plans
The Setting Every Community Up for Retirement Enhancement (SECURE) Act is the first significant retirement-related legislation in more than a dozen years. It brings many changes that affect employers of
Wayfair revisited — It’s time to review your sales tax obligations
In its 2018 decision in South Dakota v. Wayfair, the U.S. Supreme Court upheld South Dakota’s “economic nexus” statute, expanding the power of states to collect sales tax from remote
Spending bill extends tax breaks, adds retirement account provisions
Spending bill extends tax breaks, adds retirement account provisions With its winter recess looming before it, Congress has engaged in a flurry of activity. Most notably, it reached agreement on
Small Businesses: It may not be not too late to cut your 2019 taxes
Don’t let the holiday rush keep you from taking some important steps to reduce your 2019 tax liability. You still have time to execute a few strategies, including: 1. Buying
IRS updates rules for using per diem rates
The IRS recently issued guidance on how businesses, self-employed individuals and qualified employees can use the per diem rules to substantiate their business travel expenses for tax purposes. The guidance
Holiday parties and gifts can help show your appreciation and provide tax breaks
With Thanksgiving behind us, the holiday season is in full swing. At this time of year, your business may want to show its gratitude to employees and customers by giving
Two valuable year-end tax-saving tools for your business
At this time of year, many business owners ask if there’s anything they can do to save tax for the year. Under current tax law, there are two valuable depreciation-related
IRS Updates Rules for Mileage-Related Deductions
The IRS has issued new guidance updating the rules for using optional standard mileage rates when calculating “above-the-line” deductions for the costs of operating an automobile for certain purposes. IRS
Thinking about converting from a C corporation to an S corporation?
The right entity choice can make a difference in the tax bill you owe for your business. Although S corporations can provide substantial tax advantages over C corporations in some
It’s not too late to trim your 2019 tax bill
Fall is in the air and that means it’s time to turn your attention to year-end tax planning. While several clear strategies and tactics emerged during the first tax filing
Accelerate depreciation deductions with a cost segregation study
Is your business depreciating over a 30-year period the entire cost of constructing the building that houses your operation? If so, you should consider a cost segregation study. It may
Setting up a Health Savings Account for your small business
Given the escalating cost of employee health care benefits, your business may be interested in providing some of these benefits through an employer-sponsored Health Savings Account (HSA). For eligible individuals,
IRS issues final QBI real estate safe harbor rules
Earlier this year, the IRS published a proposed safe harbor giving owners of certain rental real estate interests the opportunity to take advantage of the qualified business income (QBI) deduction.
Understanding and controlling the unemployment tax costs of your business
As an employer, you must pay federal unemployment (FUTA) tax on amounts up to $7,000 paid to each employee as wages during the calendar year. The rate of tax imposed
The chances of an IRS audit are low, but business owners should be prepared
Many business owners ask: How can I avoid an IRS audit? The good news is that the odds against being audited are in your favor. In fiscal year 2018, the
IRS provides additional guidance on bonus depreciation under the TCJA
The IRS has released final regulations and another round of proposed regs for the first-year 100% bonus depreciation deduction. The Tax Cuts and Jobs Act (TCJA) expanded the deduction to
2019 Q4 tax calendar
Key deadlines for businesses and other employers Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2019. Keep in mind that